How Buying Bitcoin Could Increase Your Financial Freedom

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Posted by The Savvy Retiree on March 3, 2017 in Money Saving Strategies, Personal Finances

Marc Carignan writing on buying bitcoin…

It wasn’t long ago when buying bitcoins was a bit of a nightmare.

Luckily, it’s not like that anymore!

Today buying bitcoins is as easy as buying something online at Amazon or your favorite online retailer.

You can buy or sell bitcoins with credit and debit cards, by bank account transfer, and even using PayPal today.

Better yet, mobile apps for bitcoin now allow you to buy and sell bitcoins anytime and from anywhere.

These apps also allow you to spend bitcoins in person…at a local bar or restaurant that may accept bitcoin in your neighborhood.

Just recently, I was shopping for a birthday gift for my niece, Vanessa. Just what does a 16-year-old girl want these days? Honestly, I really don’t know. So I bought what I always buy when I’m unsure. I turned on my computer and bought her a gift card.

This time, however, instead of using a credit card to make my purchase, I chose to use bitcoin. More than just a form of payment, bitcoin is the digital equivalent of cash. A growing number of merchants are now gladly accepting this new digital currency.

Why would a merchant want to accept bitcoin?

Buying bitcoin

©iStock.com/cruphoto

First, merchants generally pay up to 3% in credit card processing fees for each payment they receive. With bitcoin, they pay only a few cents per transaction.

Secondly, bitcoin works like cash, so credit card chargebacks and insufficient funds issues are a thing of the past. Just like cash, once bitcoins are transferred from one person to another — or from a customer to a merchant — the transaction is final.

As for me, I even got an extra incentive to use bitcoin rather than my credit card from the gift card merchant. I earned additional loyalty points that are good toward future purchases, a bonus that only bitcoin users receive. It was a win-win for both the merchant and me, the customer.

Buying with a bitcoin mobile app is an easy way to use bitcoins as well, especially in person. If you are at a coffee shop or restaurant that accepts bitcoins, you simply inform the waiter or cashier that you want to pay in bitcoin.

You then use your phone’s camera to scan a special barcode on the cashier’s checkout screen (usually a tablet like an iPad). You can review the transaction and then click to confirm the transaction on your phone. It truly is easy and amazing.

As opposed to the various mobile payment apps that exist today, bitcoin does not require you to load in your favorite credit or debit cards and it does not require a bank’s cooperation or approval. Bitcoin is digital cash that is controlled from your mobile phone or online. And just like with cash, you are in control!

Using bitcoins also helps protect your wealth from greedy governments, corrupt banks, and other criminals as well. It’s not like a bank account where a government agency like the IRS can simply freeze your account…or where a court can dip into it for payment. However, you need to follow the thee critical keys to keeping your bitcoins safe.

Editor’s note: Marc Carignan is founder of the The Bitcoin Tutor website and author of the book of the same name.

Main Image: ©iStock.com/Christian Rummel