Bitcoin Making Money But Does It Spend Money?

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Bitcoin, which continues to be in demand from investors to corporate companies with its rising value, also continues to gain use as a payment tool. A man who recently ran a car dealership in the US city of Las Vegas received $ 6 million worth of Bitcoin as payment in exchange for two sports cars he sold. So is it as easy as it sounds to pay with Bitcoin?

Nick Dossa, who runs the Vegas Auto Gallery in Las Vegas, sold the 2017 Pagani Huayra Roadster and the 2019 Bugatti Chiron for $ 6 million worth of Bitcoin. Dossa stated that between 3-5% of the sales transactions were made with Bitcoin. According to the Wall Street Journal, Dossa’s car dealership has become a haunt of wealthy Bitcoin investors. However, the article, in which Bitcoin is considered a payment tool, also addressed the difficulties of paying with BTC.

Although there are businesses that accept payments with Bitcoin, such as Dossa’s car dealership, the article focused on the small number of businesses that accept payments with Bitcoin. In addition, it was underlined that BTC as a means of payment has some obstacles in its face.

3 obstacles facing bitcoin as a payment tool
The article addresses three key hurdles on the subject. The first hurdle is that Bitcoin is volatile, which may require extra transaction fees from customers. Bitcoin converted to dollars at the time of payment is not traded at a fixed rate. This, in turn, can create problems for the paying parties.

The second obstacle is shaping the deposition behavior. The rise in the price of Bitcoin, combined with increased demand in the face of limited supply, may lead investors to exhibit the behavior of accumulating bitcoins in their hands rather than spending, according to the report. It is said that this could lead to a similar problem to the deflation problems seen in fiat currencies.

Commenting on the accumulation behavior, forex strategist Kit Juckes said, “If the bitcoin I bought for 5 thousand dollars is 23 thousand dollars today and PayPal allows me to buy something nice with that money, I might think it’s a nice way to diversify the portfolio.” said.

“Bitcoin can be a payment tool for the rich”
Finally, the obstacle Bitcoin faces as a means of payment is transaction fees. Each transfer on the Bitcoin network is charged at varying rates. The article stated that the transaction fee payable when paying with Bitcoin in a small-cost transaction, such as buying coffee, may be high.

However, it is said that this transaction fee will hardly stand out in large-cost transactions. “For a $ 127 thousand transaction, a $ 9 transaction fee can be ignored, ” the article said.”there is a comment made in the form of. For this reason, it was emphasized that Bitcoin can be a much more convenient means of payment, especially for the rich, than cashing in gold or selling stocks.

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