Cryptocurrencies_11. Ways to use bitcoin besides investing

Lesson 11: Ways to use bitcoin besides investing

Bitcoin’s popularity and growing scarcity enable the purchasing of various goods and
services around the globe.
In 2015, the number of merchants accepting bitcoin exceeded 100,000. Instead of
2–3% fees typically imposed by credit card processors, merchants accepting bitcoins
often pay fees under 2%, down to 0%. Firms that accepted payments in bitcoin as of
December 2014 included PayPal, Microsoft, Dell, and Newegg.

Merchants accepting bitcoin ordinarily use the services of bitcoin payment service
providers such as BitPay or Coinbase. When a customer pays in bitcoin, the
payment service provider accepts the bitcoin on behalf of the merchant, converts it to
the local currency, and sends the obtained amount to the merchant's bank account,
charging a fee for the service.

Bitcoin companies have had difficulty opening traditional bank accounts because
lenders have been leery of bitcoin's links to illicit activity. According to Antonio
Gallippi, a co-founder of BitPay, "banks are scared to deal with bitcoin companies,
even if they really want to".
In 2014, the National Australia Bank closed accounts of businesses with ties to
bitcoin, and HSBC refused to serve a hedge fund with links to bitcoin. Australian
banks in general have been reported as closing down bank accounts of operators of
businesses involving the currency; this has become the subject of an investigation by
the Australian Competition and Consumer Commission. Nonetheless, Australian
banks have keenly adopted the blockchain technology on which bitcoin is based.