Why Can’t I Pay Using Bitcoin? 🛒

Table of Contents

Why Can’t I Pay Using Bitcoin?

On yesterday’s Crunch, we talked about how Tesla purchased $1.5 billion worth of Bitcoin and stated the company would start accepting Bitcoin as a form of payment. Tesla’s announcement sent Bitcoin flying, touching an all-time high of nearly $49,000.

One of my friends who listens to our daily Crunch wondered, “why don’t more companies accept Bitcoin? Why can’t I use Bitcoin to pay for expenses like groceries or gas?”

Say for example, you wanted to buy $10 worth of food from the grocery store. You wouldn’t want to use Bitcoin as a form of payment because of transaction fees associated with the cryptocurrency. The average transaction fee is more than $11 bucks, so in our example, you could end up paying double the price. However, for big ticket items like an $80,000 Tesla, these small transaction fees aren’t a problem.

But transaction fees aren’t the only reason Bitcoin is not practical to use on everyday expenses. Bitcoin is an extremely volatile currency, meaning the price rises and falls quickly and often. The cryptocurrency could rise more than 30% in a single day or it could fall more than 30% in a single day, for no discernable reason.

More retailers are starting to accept Bitcoin, but according to the Wall Street Journal, payments in Bitcoin only make up around 5% of total sales.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Higher Rate Households 📈
27 September, 2023

The recent Fed decision to pause rates has left the federal funds rate at its highest level since 2000.

Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.