Although the concept of a crypto currency with no central authority was conceived in 1998, the first digital currency based on a decentralised payment network – Bitcoin – took 11 years to develop. What you can buy with bitcoin now and how it became an international currency will astound you. Over 13 million people have used the new electronic money to send and receive payments or make transactions since its launch in 2009. Bitcoin is a handy payment mechanism that has been used by a variety of businesses around the world, including bullion and precious metals traders, due to its multiple advantages. However, keep in mind that bitcoin is still in its early stages of growth.
Gold Buying With Bitcoin
You can buy gold with bitcoin once your bitcoin currency has been displayed in your wallet. Add your selected bullion goods to your shopping basket, choose Bitcoin as a payment method from the drop-down menu, and complete the checkout process. After you’ve filled out all of the information for your order, you’ll be taken to the BitPay checkout page, where you can finish the transaction by:
Scanning the QR Code (Scan) – the invoice is encoded as a QR code that must be scanned with your Bitcoin wallet software. Simply approve the invoice when it appears in your app, and the amount will be transmitted to Bullion Exchanges.
Access your wallet, enter in the displayed Bitcoin address and precise bitcoin amount (BTC), and send the payment to Bullion Exchanges.
To maintain exchange rate accuracy, the invoice will only be active for 15 minutes. It may take up to 24 hours for your payment to receive 6 confirmations on the Bitcoin network after it is submitted.
How to Purchase Gold Using Other Cryptocurrencies
You can still exchange some of your crypto holdings for gold and silver if you’re an avid crypto investor and own one of the numerous other cryptocurrencies.
Simply exchange for bitcoin and you’re ready to purchase bullion. To convert your alternative coins into Bitcoin, you can utilise services like ShapeShift or Changelly, or trade on prominent exchanges like GDAX/Coinbase or Bittrex. This will let you to make your metal purchase immediately. You can even sell the cryptos for US dollars and then buy using a cheque, debit/credit card, or bank wire if you’re in a hurry.
The Benefits of Investing in Gold And Cryptocurrencies
When it comes down to it, precious metals and cryptocurrency have a lot in common:
Both are money in the sense that they are held outside of the banking system and that their value is not defined or regulated by a central authority.
Both gold and cryptocurrency are “mined” and have limited supply.
Both serve as a hedge against fiat currency depreciation and market volatility.
Gold and cryptocurrencies are becoming popular alternatives to the US currency as trust in financial and political systems erodes. They are held as investments and used as money in direct transactions. Although certain cryptos have seen spectacular climbs spurred by speculators, having exposure to both gold and cryptocurrencies can be beneficial.
Bitcoin is created and given to users as a reward for “mining” – a competition in which the users offer their computing power for verifying and recording bitcoin transactions into a new block in the blockchain. Successful users (miners) are rewarded with newly created bitcoins and transaction fees.
While both are “mined,” their only real-world or virtual applications seem to be as tools of pure speculation—or as safe-haven assets. Whenever the world goes half a bubble off plumb, people flock to gold. More and more, they also seem to flock to bitcoin.