Millions of people are buying Bitcoin and leaving the dollar behind in the dust bin of monetary history. From unending money printing, to the inflation to which it inevitably leads, to governments capriciously seizing bank accounts, the dollar is looking less like a sure bet and more like a liability.
Not only is the money being rapidly devalued, but trust in the financial systems which hold our money is quickly diminishing as well. For many, Bitcoin is the saving grace from currencies in steep decline and a means to exit a corrupt financial system.
But, is trading fiat money for Bitcoin to use as a currency feasible? Are there ways to live off of Bitcoin today and bypass the old systems? Here, we’ll unpack the current realities of living off of Bitcoin and learn how to start using crypto for daily transactions.
Step I: Buy Bitcoin
There are two main ways to buy Bitcoin: KYC or non-KYC. KYC refers to “Know Your Customer”; This is a means for financial institutions and the government to track your identity and Bitcoin wallets. KYC requires the collection of personal information like photo ID, social security number, banking information, etc. and are used by centralized exchanges like Coinbase or Kraken.
Purchasing Bitcoin and other cryptocurrencies through KYC-compliant exchanges is easy: Set up a free account, input your personal identifying information and your debit/bank account information, then you’re ready to make purchases.
But for however convenient KYC exchanges make onboarding into crypto, the true cost is that of your privacy. From the moment you relinquish your information, the company itself, as well as governmental agencies, can track everything you do on the blockchain- every transaction can be seen and traced back to you.
If you’re uncomfortable with the government having the ability to follow and track your purchases on a transparent blockchain, then you’ll want to buy from non-KYC exchanges.
Non-KYC exchanges are those that do not require any identifying information when buying crypto. One of the most popular is TradeOgre.
When you’re ready to buy Bitcoin and retain your privacy, read our step-by-step description of how to onboard anonymously, “How to Buy Bitcoin Anonymously“.
Step II: Location
The easiest way to live off of Bitcoin is to live in a location that accepts it as legal tender. As of 2022, there are only a few places where you can use crypto for daily transactions- though more will follow.
New Hampshire, United States
Since Bitcoin’s inception in 2009, many New Hampshirites have embraced crypto as a means of exchange. In particular, Libertarian “Free Staters” have been at the helm of transitioning off fiat money and onto a hard money system. Not only do many small businesses accept Bitcoin, but they also accept other cryptocurrencies like Monero and PirateChain, precious metals, and green backs. If you’re looking for a place to use crypto relatively freely, connecting with the Free State Project is a great place to start.
El Salvador
Before 2019, most residents of El Zonte, El Salvador, were “unbanked”: Meaning, they were unable to access to financial institutions, bank accounts, or credit cards. But in 2019, the small, surfside town was gifted an anonymous Bitcoin donation by an early adopter, was christened Bitcoin Beach, and began accepting only Bitcoin for everyday transactions.
The adoption of Bitcoin started changing lives. Residents and visitors finally had a way to transact directly peer-to-peer [P2P], without the need for any third party intermediaries, banks, or financial institutions.
El Salvador’s Bitcoin Beach experiment was so successful, that it became legal tender for the entire country in 2021. Now, residents and visitors can use Bitcoin for anything from pupusas to margaritas, rent to gasoline.
So, if you’re searching for a place to use Bitcoin everyday while enjoying beautiful beaches and meeting friendly people, El Salvador is your best bet.
Global Peer-to-Peer Network
For millions of people, moving to New Hampshire or El Salvador just to use Bitcoin is not feasible. But this is the beauty of Bitcoin: It’s the world’s most decentralized directly peer-to-peer [P2P] network which functions as a currency between anyone in the world virtually instantaneously.
Someone living in Canada can make a purchase with Bitcoin from someone in Hong Kong; there is no bank, institution, government, or other agency that can stop that transaction. It’s completely permissionless. For small businesses, make sure to check if the store accepts crypto- you might be surprised at who’s already onboard. [And yes, our own Citizen Xero shop proudly accepts Bitcoin and PirateChain].
Currently, there are some major companies accepting Bitcoin, from coffeeshops to fast food restaurants, though widespread accessibility is still limited. For a look at what companies are currently accepting Bitcoin, read this list.
Step III: Cards for Everyday Purchases
In order to use Bitcoin for daily purchases in most countries around the world, exchanging Bitcoin for gift cards is currently the easiest method.
Bitrefill
One of the most popular sites for purchasing gift cards with crypto, Bitrefill offers access to over 4000 companies, including Whole Foods, Target, Starbucks, Amazon, CVS, Dominos, and Uber.
To purchase cards with Bitrefill:
Register an account, shop for the company you want to buy a gift card from, input the amount you want to put on the card, choose your payment method [Bitcoin, Ethereum, Dogecoin, or Litecoin], redeem your card online, then you’re ready to shop!
With over 4000 vendors available, most daily purchases can be made with this method.
Coinbase Card
The Coinbase card works like a debit card- pulling out crypto from your Coinbase wallet then converting it into fiat for daily transactions.
Coinbase cards offer convenience and the familiarity of the old system, however there are major pitfalls to such cards; Bank accounts are required, as well as KYC data, so for those looking to break free from the banking system- or who have been involuntarily “unbanked”- these cards are not a true solution and in some instances may be completely inaccessible.
Wrap Up
Bitcoin and other cryptocurrencies are still in the process of gaining mainstream adoption, with more businesses beginning to accept it as payment.
There are a few ways to use Bitcoin as a currency for daily transactions, including: Direct peer-to-peer transactions, payment processors for eligible online retailers, and gift cards.
In the coming years, Bitcoin will see increased worldwide usage, as it’s the world’s most decentralized, unstoppable, uncensorable, hard money, which bypasses banking institutions, third parties, corrupt governments, and failing banking systems.
Bitcoin is freedom money.
Suggested Reading: Why Bitcoin [and Crypto] Will Succeed
How to Buy Bitcoin Anonymously
Bitcoin, Sh*t Coins, + Privacy Coins: A User’s Guide to Crypto
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