Friday, October 7, 2022

Where Can I Spend Cryptocurrency

Valuing Cryptocurrencies Either As Capital Property Or Inventory

How to Buy, Use, and Spend Bitcoin | Mashable Explains

To file your income tax return, you need to know how to value your cryptocurrencies. This depends on whether they are considered capital property or inventory. When cryptocurrencies are held as capital property, you must record and track the adjusted cost base so that you can accurately report any capital gains.

If the cryptocurrencies are considered to be inventory, use one of the following two methods of valuing inventory consistently from year to year:

  • value each item in the inventory at its cost when it was acquired or its fair market value at the end of the year, whichever is lower
  • value the entire inventory at its fair market value at the end of the year

You might have to use other methods of valuing inventory, depending on the type of business you have. For example, property described in the inventory of a business that is an adventure or concern in the nature of trade must be valued at the cost you acquired the property for.

You will have to compare the cost and the fair market value of each item to figure out which is lower. You then use the lower figure for each item to calculate the total value of your inventory at the end of the year.

“Cost” as used in the phrase “cost at which the taxpayer acquired the property,” means the original cost of the particular item of inventory , plus all reasonable costs incurred to buy that particular block of cryptocurrency.

Use the same inventory method from year to year. Please review our archived page on inventory .

Service Providers That Accept Bitcoin

Bitcoins acceptance as a payment option varies from company to company. Hence, there are no specific markets where BTC is universally accepted. Instead, there are various companies in different sectors looking to expand their client bases by introducing digital currencies as a new payment option:

  • AT& T a cellular service provider.
  • Twitch a live streaming platform.
  • Dish Network an American direct-broadcast satellite service provider.
  • ExpressVPN a high-speed, secure VPN network.
  • NordVPN a no-log VPN provider from Malta.
  • ProtonMail an end-to-end encrypted email provider.
  • Vultr a web hosting company.
  • WordPress an open-source content management system that allows users to create websites and blogs.
  • Reddit you can buy premium features with Bitcoin.
  • Namecheap web hosting and domain name provider.
  • Bloomberg, Chicago Sun-Times use Bitcoin to subscribe to an online news outlet.

You Can Invest In Bitcoin But Seeing As It’s A Digital Currency You Can Spend It Too At A Rapidly Growing Number Of Businesses Here’s How

A recent rally to all-time highs has sparked yet another wave of interest in Bitcoin . Logically, much of the renewed emphasis is on Bitcoin as an investment. But BTC is also at its core a digital currency, and with every day that goes by, a growing number of businesses are allowing people to buy and sell goods and services with it.

So for a moment, let’s put on our consumer goggles and talk about how to spend your Bitcoin.

Firstly, it’s important to note that Bitcoin is often recognized as a “store of value” today, and thus it’s more similar to gold than it is to the dollar, pound or yen, for example. The wild fluctuations in value and sentiment toward future price rallies are such that many investors are unwilling to use their BTC to make purchases.

However, an important facet of cryptocurrency adoption is practicality. For Bitcoin to become more widely accepted around the world, more adopters will need to feel emboldened to actually use the cryptocurrency. At the same time, merchants will have to see proof that customers will actually use BTC, and that the costs of offering it as a payment option will be worth it.

Read on as we explain how to store and spend your Bitcoin, and then we’ll discuss many of the places that will let you pay in BTC.

Also Check: How To Track Your Crypto Portfolio

Spend Bitcoin From A Lot More Businesses With Gift Cards

Dont have enough BTC to afford a house? Want something else besides the specific things above? Buy gift cards for your friends and family from eGifter! They have over 250 retailers to choose from such as Macys, Uber, Target, Nike, Best Buy, Walmart, and so many more. Bonus: earn points on their site by using Bitcoin!

How Can I Buy Something With Bitcoin

The Free Voluntarist: How To Earn Cryptocurrency For Free?

The easiest and most convenient way to make purchases using bitcoin or other cryptocurrencies is with a cryptocurrency debit card. These cards, which are available from major crypto exchanges and other providers, also allow the holder to withdraw cash from participating ATMs. Many participate in major networks, such as Mastercard and Visa.

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Where To Spend Cryptocurrency Or How To Spend

Where is an issue, to be surebut HOW to spend your Bitcoin can also be a question youll need answering. For example, there are debit cards you can tie your cryptocurrency to that allow you to spend anywhere that type of debit card is accepted. Crypto accounts may require you to use a mobile wallet, or you may have to use some type of pre-paid card to pay for some goods or services with your digital currency.

Many published reports about digital currency-friendly debit cards list options like the Shift Card, CoinsBank, Bitpay, and SatoshiTango. The problem most newcomers to cryptocurrency will experience here is deciding which of these to trust, which feel less-than-trustworthy , and which ones to avoid completely.

How Has Cryptocurrency Ensured Ease Of Use For International Tourists

Crypto is not only meant for tech lovers and finance geeks. People who live a life that revolves around activeness and luxury can also benefit from this. Its security and privacy policies make it a great option for all travelers to use this as their payment method. Crypto is capable of being converted across currencies which makes it very beneficial for travel lovers. Furthermore, cryptocurrency has made transactions across borders fairly similar as unlike traditional banks, it does not charge any extra fees from the users. One place where crypto can come in handy is during hotel booking. Using crypto as a payment gateway is a very viable option that travelers must take into consideration.

Even though they took their time to hop on this bandwagon, many international hotels are slowly starting to accept crypto as their payment method. Nowadays, it has become possible to pay for hotels and book flights through cryptocurrency. This gives the customer a luxurious experience and makes payment much simpler. There are platforms like Travala which assist tourist and visitors to find local renowned hotels which support crypto payments. Travala has made it easier for all travelers to book hotels with its user-friendly interface. Even those people who are not that technologically sound will be able to find the perfect hotel in a matter of seconds.

Also Check: How Many Cryptocurrencies Are There On Coinbase

Should You Invest In Cryptocurrency

Experts hold mixed opinions about investing in cryptocurrency. Because crypto is a highly speculative investment, with the potential for intense price swings, some financial advisors dont recommend people invest at all.

For example, while Bitcoin has nearly doubled in value over the last year, reaching a price of over $18,000 in November 2020, its also drastically lost value in the same year, like when it bottomed out at under $5,000 per Bitcoin. Even Bitcoins recent highs, however, are still lower than its 2017 peak of about $20,000 per Bitcoin. All of this is to say, cryptocurrencies, unlike most established currencies, can be very volatile and change value frequently.

Thats why Peter Palion, a certified financial planner in East Norwich, N.Y., thinks its safer to stick to currency thats backed by a government, like the U.S. dollar.

If you have the U.S. dollar in your cash reserves, you know you can pay your mortgage, you can pay your electricity bill, Palion says. When you look at the last 12 months, Bitcoin looks basically like my last EKG, and the U.S. dollar index is more or less a flat line. Something that drops by 50% is not suitable for anything but speculation.

That said, for clients who are specifically interested in cryptocurrency, CFP Ian Harvey helps them put some money into it. The weight in a clients portfolio should be large enough to feel meaningful while not derailing their long-term plan should the investment go to zero, says Harvey.

Is It Business Income Or Capital Gain

Can I Use Cryptocurrency ð° for Down Payment or Closing Costs on a House? ð?

The income you get from disposing of cryptocurrency may be considered business income or a capital gain. In order to report it correctly, you must first establish what kind of income it is.

The following are common signs that you may be carrying on a business:

  • you carry on activity for commercial reasons and in a commercially viable way
  • you undertake activities in a businesslike manner, which might include preparing a business plan and acquiring capital assets or inventory
  • you promote a product or service
  • you show that you intend to make a profit, even if you are unlikely to do so in the short term

Business activities normally involve some regularity or a repetitive process over time. Each situation has to be looked at separately.

In some cases, a single transaction can be considered a business, for example when it is an adventure or concern in the nature of trade. Whether you are carrying on a business or not must be determined on a case by case basis. For more information, please review our archived content on an adventure or concern in the nature of trade.

Some examples of cryptocurrency businesses are:

  • cryptocurrency mining
  • cryptocurrency trading
  • cryptocurrency exchanges, including ATMs

Also Check: What Is Cold Storage Crypto

How To Store And Spend Bitcoin

Online exchanges including Coinbase and Binance are popular places to buy and sell Bitcoin. But when it comes to spending it, you’ll need a little more than an online portfolio.

Fortunately, just like with fiat money, you have some options available to you.

With your dollars, pounds and yen, you can store your money in a bank. From there, you can spend it digitally, say through a bank transfer or even PayPal. You can use a debit card, too. And, of course, you can always withdraw your money and physically stuff it in a wallet and spend it that way.

Storing cryptocurrency involves a “wallet” as well but because it’s digital money, your wallet must be digital as well. You can use software-based wallets such as Metamask or Coinbase Wallet on your desktop, or to access your crypto from anywhere using your smartphone. Physical wallets exist, too: USB devices that store your cryptocurrency electronically.

And actually, it’s even possible to use paper wallet services for your crypto, which is the closest you’ll get to spending your BTC as if it were actual cash. With this method, you’ll have a piece of paper with two QR codes: one can be used to receive cryptocurrency, and the other can be used to spend it.

The transaction typically involves going to wallet’s “send” option, entering the wallet address of the recipient, selecting which currency and how much you’d like to send, then approving the transaction.

Cons Of Paying Using Cryptocurrency

  • Technical steps involvedUnless you are using a crypto card like the TenX Visa Card, there are some technical steps involved with paying using cryptocurrency
  • Irreversible mistakesYou will need to be extra careful as cryptocurrency transfers are irreversible, so more precautions are needed, such as making sure that the wallet address you are transferring to is absolutely correct

TenX Pte. Ltd. – 11 Keppel Road #07-00 – API Plaza – 089057 Singapore

Crypto asset custody services rendered by TenX Pte. Ltd.

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Great Concept A Ton Of Potential App Needs An Update

The SPEDN app powered by Flexa Payments LLC is a fantastic project that with hopefully be a catalyst for mainstream adoption of cryptocurrency and its use as a payment option. Flexa has a good thing going with SPEDN, but I would like to see an update this this apps performance and wording. It needs to be made clear that not all stores will accept every cryptocurrency. Secondly, and lastly, I think companies whom own subsidiary brick-and-mortar stores should also be listed. I do not want to hunt to find out who owns what so I can decide if they may or may not be running the Flexa network. Overall, great project, but needs some improvements.

Is Cryptocurrency Safe

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Cryptocurrencies are usually built using blockchain technology. Blockchain describes the way transactions are recorded into “blocks” and time stamped. It’s a fairly complex, technical process, but the result is a digital ledger of cryptocurrency transactions that’s hard for hackers to tamper with.

In addition, transactions require a two-factor authentication process. For instance, you might be asked to enter a username and password to start a transaction. Then, you might have to enter an authentication code sent via text to your personal cell phone.

While securities are in place, that does not mean cryptocurrencies are un-hackable. Several high-dollar hacks have cost cryptocurrency start-ups heavily. Hackers hit Coincheck to the tune of $534 million and BitGrail for $195 million, making them two of the biggest cryptocurrency hacks of 2018.

Unlike government-backed money, the value of virtual currencies is driven entirely by supply and demand. This can create wild swings that produce significant gains for investors or big losses. And cryptocurrency investments are subject to far less regulatory protection than traditional financial products like stocks, bonds, and mutual funds.

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What Is A Blockchain

A blockchain is an open, distributed ledger that records transactions in code. In practice, its a little like a checkbook thats distributed across countless computers around the world. Transactions are recorded in blocks that are then linked together on a chain of previous cryptocurrency transactions.

Imagine a book where you write down everything you spend money on each day, says Buchi Okoro, CEO and co-founder of African cryptocurrency exchange Quidax. Each page is similar to a block, and the entire book, a group of pages, is a blockchain.

With a blockchain, everyone who uses a cryptocurrency has their own copy of this book to create a unified transaction record. Software logs each new transaction as it happens, and every copy of the blockchain is updated simultaneously with the new information, keeping all records identical and accurate.

To prevent fraud, each transaction is checked using one of two main validation techniques: proof of work or proof of stake.

Where To Spend Bitcoin: A List Of All The Places You Can Use The Crypto

  • Original: Jul 20, 2021

Is Bitcoin really usable as a currency? A lot of businesses are starting to accept it and some are figuring out ways to scale transactions.

A common argument against Bitcoin is that it isn’t that usable as a currency. But is this really true?

Bitcoin’s acceptance as a payment method has grown a lot in the last few years. There are also solutions to scale its transaction capacity, making Bitcoin more realistic as a day-to-day payment method.

Dont miss out on how smart money is playing the crypto game. Subscribe to our premium newsletter – Crypto Investor.

Right now, Bitcoin can be directly spent in a growing number of locations for a variety of products and services.

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Example : Trading One Type Of Cryptocurrency For Another

On July 30, 2018, Francis bought 100 units of Ethereum, which had a value of $20,600. For this purchase, Francis used 2.5061 Bitcoins, which were trading at $8,220 per unit on that day, or the equivalent of $20,600. We consider that Francis disposed of those Bitcoins. Francis originally bought those Bitcoins for $15,000 and exchanged them for 100 units of Ethereum at a value of $20,600, resulting in a capital gain. It is calculated as follows:

$20,600

– $15,000

$5,600 capital gain

$5,600 capital gain taxed at 50% = $2,800 taxable capital gain

If, on the other hand, the original purchase price of the 2.5061 Bitcoins had originally been $25,000, but at the time that Francis exchanged them for 100 units of Ethereum they were worth only $20,600, he would have a capital loss. It is calculated as follows:

$20,600

– $25,000

$4,400 capital loss

$4,400 capital loss × 50% = $2,200 allowable capital loss

This example assumes that the cryptocurrency in question was held as an investment on account of capital however, if this transaction occurred in the course of conducting a business, the entire amount of $5,600 would need to be reported as income in the first transaction and the entire $4,400 would be reported as a loss in the second transaction.

What Bills Can I Pay

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You can use cryptocurrency to pay for a hugely diverse range of bills, including the following:

  • Electricity and gas bills
  • Health insurance premiums
  • Tax bills

Exactly what type of bills you can pay depends on what service youre using. For example, Coinsfer pays bills using a credit card, so you can use it to pay any bills that accept credit card.

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Where Can I Spend Bitcoin And Crypto

Many people who have some bitcoin view it as an investment, because of its massive price appreciation. However, Bitcoin, Bitcoin Cash, and other cryptocurrencies are also a viable way to pay for an ever increasing number of products and services. We maintain a thorough list of businesses that accept crypto sorted into useful categories.

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