Last week I wrote about 5 digital currencies besides Bitcoins which had some people still wondering what crypto-currencies are and what they can be used for.
First, crypto-currencies are peer-to-peer encrypted bits represented by a number shared from computer to computer like a BitTorrent when transactions are made. Participants keep a virtual wallet either stored on a personal device or at a secure cloud.
These currencies are created through a mining process which produces a new coin when computers in the system solve increasingly difficult algorithmic equations. Total supply is limited resulting in a natural increase in value assuming the currency has real-world uses (demand). Besides mining, users can also purchase existing coins at exchanges or sell something in these currencies.
Yes, you can now sell or buy just about anything you can think of using Bitcoins. It gained early notice for being used to buy illegal drugs and other contraband at Silk Road on the Tor network. Bitcoin’s introduction into mainstream e-commerce basically consisted of digital products like domain names, hosting space, software, etc.
Additionally, the leading Bitcoin exchange MtGox.com offers a payment application for any e-tailer to offer their products for Bitcoins. See a brief explanation of this app below:
Here is just a brief list of things you didn’t know you could get with Bitcoins:
|US House for sale – 853 BTC|
1. Houses: Last week a Canadian man made news by listing his riverside bungalow home for sale in Bitcoin. Homes are also beginning to be listed here. You can even rent a vacation penthouse in Turkey for .72 BTC per day.
3. iPads and iPhones: iPads, iPhones, and nearly every other electronic you can think of are now for sale with Bitcoins.
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4. Rental Cars in Argentina: SovereignMan.com reported on a friend in Argentina who is offering discounts from his car rental agency for Bitcoin customers. Incentive: avoid taxes, price controls, and regulations.
5. Precious Metals: Want to trade Bitcoin for a tangible precious-metals? Now you can. A plethora of silver coins and others are available for purchase with Bitcoins.
6. Hard Currency: You can buy anything from a $20 bill up to a 500 euros to be sent through the mail with escrow.
|Goat for sale – 1.85 BTC|
10. NCAA Final Four Tickets are also available while the tournament lasts.
So for all of you wondering what you can buy with Bitcoins, the answer is pretty much anything . . . food, houses, cars, clothing, drugs, electronics, animals, etc. What else is there?
And for those of you that have something to sell, why not make your product unique by making it available through Bitcoin? The tools are already set up.