Noob Bitcoin Question - is buying goods with bitcoin worth it?

LShazam82 on 28/04/2022 - 21:42

OK, I'm really new to crypto so sorry in advance, I've tried to find the answer on google but no luck.

Is buying goods with Bitcoin good value compared to PayPal/Credit Cards when it comes to transaction fees?

I have only made one purchase with Bitcoin (through Binance) of about $40USD but paid about another $20USD extra at the final step. I think I may have chosen the quickest time and that is why I was charged so much on the bitcoin network.

So is Bitcoin worth using in everyday transaction or is it best to stick with PayPal/Credit Cards for smaller transactions?

Please be nice, I'm just trying to understand this new crypto world without doing my nuts.

Financial

Comments

  • BewareOfThe Dog on 28/04/2022 - 21:43
    +2

    Definitely not a Pizza
    Unless it's May 22nd

    • Shazam82 on 28/04/2022 - 21:51

      lol that's an expensive pizza. Clearly not using his Domino vouchers on Ozbargin.

      • BewareOfThe Dog on 28/04/2022 - 22:22
        +2

        Seeing as Domino's is the worst pizza in Australia, papa johns would have to be an improvement.

  • carlJack on 28/04/2022 - 22:14
    +2

    No. Treat it like gold.

  • Xetrok on 28/04/2022 - 22:27
    +2

    Just make a comparison of the all inclusive costs for the item?
    Your situation is very vague and not really easily answered with certainty.

    You would certainly be buying bitcoin through an exchange very much like you would with foriegn currency (so an inflated buy rate to cover exchange) so there will be a slight devalueation there.
    Vendor price would play a part.
    Transaction fees also play a part.

    Assume the item costs $100.
    Take $100 and figure out your devaluation to convert from home currency to bitcoin (what are you left with after buying bitcoin).
    What will it cost in fees (average txn fee is $1.50usd - https://bitinfocharts.com/comparison/bitcoin-transactionfees…)

    Then compare the costs of fees using other methods.

    Honestly I wouldn't be surprised if vendors who sell legitimate goods and accept bitcoin add a premium due to the volatile nature of bitcoin, therefore you would likely see less value.

    But happy for you to do the legwork and compare!

    • Shazam82 on 29/04/2022 - 09:18

      Great advice, thank you. I suspect you're right regarding the premium due to the volatility.

  • dust on 29/04/2022 - 09:28
    +2

    Hodl.

  • Drakesy on 29/04/2022 - 10:41

    INB4 @Rektrading spruiks infinite gains.

    TBH i still feel it's like all hype, a bit like Afterpay.

  • whatwasherproblem on 29/04/2022 - 12:55

    Kind of answered your own question there, didn't you OP?

    I have only made one purchase with Bitcoin (through Binance) of about $40USD but paid about another $20USD extra at the final step.

    _> "Is buying goods with bitcoin good value if I have to pay 50% on top of the original purchase price?"

    To be nice though, no it's not usually good value. Network congestion often leads to ludicrous overhead costs for exchanging Bitcoin/Ethereum/other coins, and Paypal and good old fashioned fiat are always going to be able to provide better adoption and lower transaction fees. Cryptocurrency is basically just for speculation or buying stuff that your bank/Paypal would blacklist you for buying.

  • ln28909 on 29/04/2022 - 18:54

    Volatile asset will never be a good choice for payment method, in the future, there will be stablecoin on each of these networks then it will make sense to use crypto for day to day tx. The goal here is to leverage the tech to send dollars (i.e. AUD, USD), not about using the actual gas currency (i.e. BTC)

  • the Unforgiven on 29/04/2022 - 20:12

    Have a look at using https://www.coinbase.com/

  • Shazam82 on 29/04/2022 - 20:51

    Thanks everyone - appreciate the help :)

Login or Join to leave a comment
Login Join