x
Breaking News
More () »

What can you actually buy with Bitcoin?

We take you through a typical day to see where you can spend digital currency, like Bitcoin.

MINNEAPOLIS — By now, you probably have someone in your life who's REALLY into digital currency, like Bitcoin.

Many get it as an investment, but what can you actually buy with it?

We’re going to take you through a typical day to see what you can all buy with Bitcoin.

And where do all good days start? With a good breakfast, and for some people a good breakfast must include a good cup of coffee.

At Starbucks you can use Bitcoin to get your day started. It's a little complicated. You have to use a special app to buy Bitcoin and then exchange it online for Starbucks gift cards, but you can do it.

You can also buy your groceries using Bitcoin.

Several Cub Foods locations now have special ATMs you can use to buy and exchange digital currency like Bitcoin.

So, if you have an account, you just type in your information, change your Bitcoin into cash, and then you can do your grocery shopping.

And if you have to pay some bills, and you're an AT&T customer, according to their website, you can use Bitcoin to pay your monthly cellphone bill.

Or let's say you're hosting a party and you need to buy some adult beverages, you can head to Elevated Beer Wine and Spirits in Minneapolis, they've been accepting Bitcoin since 2014.

"I would say on average probably about a couple of people a day would come in and spend their Bitcoin with us back when we first started,” Owner Ryan Widuch says.

RELATED: IRS just sent out another $500 million to Americans. Here's who's getting it.

However, these days Widuch says they rarely see customers using Bitcoin because the price has gone up so much and people are deciding to save their Bitcoin instead of spending it.

"A lot of people aren't spending it. They're holding it and using it instead as a savings technology and a store of value,” Widuch says.

That's why the Family Barber in Bloomington won't accept Bitcoin anymore either, although they said they may reconsider in the future.

And they're not alone.

According to CoinMap.org, there are several local companies in the Twin Cities that accept Bitcoin, but we checked in with many of them and most of those businesses no longer accept it.

So, locally there aren't a lot of places that will accept Bitcoin, but if your day includes online shopping, you have more choices, with companies like Etsy, Overstock and several others accepting Bitcoin.

Another issue companies face is the price of Bitcoin is so volatile.

You might sell something for $10 in Bitcoin, but let’s say the price of Bitcoin drops 20% before you change that Bitcoin to cash, now you don't have $10 dollars, you have $8.

It also goes the other way. If Bitcoin goes up, you might make more money, but that's a risk some business owners aren't willing to take.

RELATED: IRS adding income update tool for monthly child tax credit payments





Before You Leave, Check This Out