Many bitcoin users seek merchants or sellers online or offline if they can accept their bitcoins as payment because some people have enough bitcoins to spend, but they do not know how to spend and where to spend this. And The last option remains shopping. In some areas, bitcoin is not popular; even the people did not hear of the name bitcoin, so how are you can suppose to pay merchants via these virtual coins. Suppose you held these coins a few years ago, but now the value gets a high pump, and now you are thinking of spending it because of the matter. Most people will look for a convenient way of the expenditure online or offline shopping, but it is not possible with only bitcoin because every merchant is not going to accept it. You can also click this image for better insight:
The perception of bitcoin
Developing this coin removed the intermediate people charging x amount for transactions and made the currency global to make the payment structure straightforward. But how many people know it? Very few because it is the best investment that will give you high returns after a specific period if your strategies are correct.
Why do people believe it is an investment? The simple answer is that many people who invested in the initial stage of bitcoin and who held it for more than five years became millionaires or billionaires. After that, people started considering it the best investment ever.
According to the data, only one per cent of merchants or vendors worldwide accept this currency to do transactions; otherwise, it is only a making money currency for most people.
Methods of using bitcoin as payment
Many bitcoin payment methods are popular, but significantly fewer bitcoin users are using them for making the payments given below:-
- Centralised exchanges:- Centralised software bitcoin wallets are the most popular form of purchasing and selling crypto coins. More than fifty per cent of people are using them in this technological era. These exchanges give multiple features over decentralised exchanges, so people love to use them. You can do transactions through the bitcoin exchange by filling in the receiver's public address.
- Bitcoin Wallets:- Bitcoin wallets are different from centralised bitcoin wallets because it works on an open-source system which means no third person controls them. Bitcoin wallets are specially made for payment transactions but not for buying and selling these coins via fiat currency.
- PayPal:- Paypal is already famous for international payment transactions. Still, the feature of its using cryptocurrency in the same account makes it more popular, which means you can buy and sell crypto using the same performance and send it to anyone.
What is a bitcoin debit card?
The biggest problem with the above payment gateways is no implementation in the entire market. If you have a centralised exchange wallet, the merchant also needs a centralised or decentralised bitcoin exchange to receive coins, making the process complex because many vendors do not want to mess up the payment system with complicated formalities. Suppose you want to make the payment in crypto via PayPal. In that case, the merchant also needs a PayPal account. Every merchant will not create a new account and fill the KYC to the PayPal platform even if they generate revenue via digital fiat payments or paper money.
So bitcoin debit card is a card like a traditional banking card that will convert your bitcoins into fiat currency at payment to merchants. The merchants do not need to create an account on the bitcoin exchange; they will receive money in their bank account.
How does it work?
- If you are the buyer and want to do online or offline shopping, you need a bitcoin wallet, whether centralised or decentralised, because you have to buy bitcoins before using it.
- You can go with the MasterCard or visa company to apply for the bitcoin debit card. So the next step is to apply for a bitcoin debit card, and many websites will help you apply for the bitcoin debit card.
- After receiving your bitcoin debit card, load your bitcoin wallet with the coins to use for making payments.
- Now connect your received bitcoin debit card with the wallet loaded with bitcoins through your purchased website.
- Now you are eligible to use the bitcoin debit card as a fiat payment method. Every time you swipe up your card in the merchant's store, the card provider will convert your digital coins into fiat without letting the merchant know.