Spending satoshis: What can you buy with Bitcoin?

Since its launch in 2009, Bitcoin (BTC) has steadily gained value, hitting a monumental $100,000 milestone in 2024. As its worth has grown, so has the general public's familiarity, with more vendors than ever accepting it as payment. Some countries, like El Salvador, have officially made Bitcoin legal tender – another major feat for the world's first cryptocurrency.

But while supporters champion its potential to transform finance, critics argue it has deviated from its original vision as a peer-to-peer (P2P) electronic payment system, as outlined in its whitepaper. Many skeptics now compare Bitcoin to wealth-preserving assets like gold rather than a day-to-day currency.

Still, Bitcoin continues to evolve, inching closer to fulfilling its creators’ vision. This guide explores Bitcoin's journey, highlighting its progress toward making everyday BTC transactions a reality. We’ll also explore what you can buy with Bitcoin today.

What do you use Bitcoin for?

The identity of Bitcoin’s pseudonymous founder, Satoshi Nakamoto, remains a mystery, but Nakamoto’s vision for the world’s first digital asset has always been clear. The title of Bitcoin’s 2008 whitepaper defines BTC as a “peer-to-peer electronic cash system.” The emphasis on "cash" signals Bitcoin’s intended role as an alternative medium of exchange, comparable to fiat currencies like the U.S. dollar or the euro.  

While Bitcoin serves as a decentralized payment system, its main blockchain is limited by a processing speed of roughly seven transactions per second (TPS). In contrast, payment networks like Visa handle around 65,000 TPS, making Bitcoin’s primary chain less practical for everyday transactions. However, the introduction of the Lightning Network (LN) – a layer2 solution built on top of Bitcoin’s blockchain – has significantly improved BTC's utility for payments. The LN allows users to make microtransactions with instant finality and minimal fees, handling millions of TPS and enabling fast, cost-effective Bitcoin transactions (more on the LN below).  

Over time, Bitcoin’s use cases have expanded beyond its original purpose as a P2P medium of exchange. With BTC's value steadily increasing and its supply capped at 21 million coins, many financial analysts compare Bitcoin to gold – a long-term financial instrument for preserving wealth and hedging against inflation. While Bitcoin can still function as a currency, its role as a digital asset akin to precious metals has become a defining feature of its identity.  

Where can I buy goods with Bitcoin?

In Bitcoin’s early days, several factors deterred the general public, including its steep learning curve, unclear legal status, and volatile price swings. Today, however, the Bitcoin Network’s ascent to a multi-trillion-dollar market cap has spurred widespread adoption, with more businesses now accepting BTC for goods and services.

Surveys suggest at least 15,000 global companies (at the time of writing) accept Bitcoin payments, including well-known brands like AT&T and AMC Theatres. Luxury names have also entered the space, with Gucci and Lamborghini also accepting direct crypto payments. Even real estate agencies accept BTC for home purchases. On the public sector side, cities like Detroit and states like Colorado allow residents to pay taxes with cryptocurrency.

For businesses that don’t accept Bitcoin directly, alternatives exist. Fintech apps like PayPal’s Crypto at Checkout feature let users spend BTC from their accounts, converting it into fiat currency for merchants. Similarly, centralized exchanges (CEXs) like Coinbase offer crypto debit cards that draw funds from users’ exchange accounts for transactions at any vendor accepting Visa. (More on both of those below.)

How to spend Bitcoin? Ways to pay with Bitcoin 

As Bitcoin becomes more practical for everyday use, making payments with BTC is easier than ever – even with vendors that aren’t crypto-ready. From direct transfers and crypto debit cards to third-party Bitcoin payment processors, these options are simplifying BTC transactions and broadening their accessibility:

Direct wallet-to-wallet transfers 

Many consider wallet-to-wallet transfers to be the classic way to pay with Bitcoin. Here’s how to complete a transaction:

1. Open your crypto wallet and select Bitcoin.
2. Choose “Send.” 
3. Specify the amount.
4. Scan the merchant’s QR code to populate the recipient address.
5. Confirm the details and approve the transfer.
6. Monitor transaction status by entering the public wallet address or transaction hash ID on blockchain explorers like Blockchair or Blockchain.com.

Crypto debit cards 

Crypto debit cards function like traditional fiat cards, allowing users to pay for goods and services directly from their cryptocurrency accounts. Transactions are made in Bitcoin, but the payment processor converts crypto to fiat in real time, allowing merchants to receive the equivalent amount in the local currency. 

Several crypto debit card options exist, including Coinbase Card, Crypto.com Visa Card, and Binance Debit Card. They’re usually valid wherever Visa and Mastercard are accepted.

Buying gift cards 

Platforms like Bitrefill and BitPay allow users to convert BTC into an equivalent cash value on a gift card. After creating an account, select a gift card, specify the amount, and pay with Bitcoin. The platform generates a blockchain address and QR code for the transaction. Once confirmed, users receive an e-gift card code via email, ready for them to spend.

Payment processors 

When merchants integrate Bitcoin payments, they typically partner with third-party platforms that handle the crypto-to-fiat conversion. Some platforms, such as Stripe, automatically convert BTC to fiat currency during the transaction, while others, like Coinbase Commerce, let merchants decide whether to hold the crypto or convert it instantly.

These payment processors simplify the process, allowing businesses to accept Bitcoin without needing to invest in extensive setup.

How much are Bitcoin transaction fees?

Bitcoin transaction fees aren’t fixed – they adjust dynamically based on network demand. When activity spikes, such as during bull markets or significant events, fees tend to increase. Typically, Bitcoin fees range between $1 and $5 per transaction, though during periods of congestion, costs can rise into double or even triple digits.

Most crypto wallets and exchanges provide an estimated transaction fee before users confirm a transfer. Many also offer the option to increase fees for faster confirmation.

One option to reduce transaction fees is the Lightning Network (LN), a layer2 solution designed to make Bitcoin transactions faster and cheaper. Users can open payment channels for unlimited off-chain transactions at minimal cost, with fees often below a penny. While opening or closing a channel still incurs Bitcoin’s standard on-chain fees, LN’s low fees make it ideal for everyday purchases like a cup of coffee or groceries.

Unlock your crypto portfolio’s full value with a CoinTracker account 

In some jurisdictions, using Bitcoin to make a purchase – no matter how big or small – triggers a taxable event. Stay compliant by connecting your crypto wallets and exchange accounts to CoinTracker’s Portfolio Tracker. Our platform automatically tracks and organizes all transactions to streamline the tax reporting process.

Discover why millions of users trust CoinTracker for hassle-free compliance. Get started for free today and experience a simpler way to handle your crypto taxes.

Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.