Bitcoin and Bills: A Practical Guide - #235
TL;DR - Bitcoin bill payments made easy. Explore 6 proven methods, from selling to crypto cards which helps you tap into Bitcoin as a powerful payment tool.
Dear reader,
For nearly three years now, I’ve been navigating the landscape of trying to Live on Bitcoin and experiencing many trials and errors along the way.
Using Bitcoin to pay my utility bills has been a revelation. In times when Bitcoin's value has soared, it's not just an investment that grows; the benefits extend to the very practical realm of bill payment.
As explained in the last essay, when Bitcoin’s price rises, the purchasing power of fiat declines.
Purchasing Power and Wealth: Defined
Purchasing power is the ability of money to buy goods and services, representing how much you can afford with a specific amount of money.
Wealth is the abundance of valuable resources and possessions (like gold, stock, land, artwork, livestock, Bitcoin, etc.) owned by an individual, family, or society. In relation to purchasing power, means having a significant amount of valuable resources which greatly increases your ability to purchase goods and services later. Wealth essentially gives you the ability to exercise greater purchasing power in the market.
As the purchasing power of fiat goes down, Bitcoin’s purchasing power goes up, making the concept of paying bills with Bitcoin a financially strategic move.
Methods to Make Bitcoin Your Bill-Paying Ally
Now that we've covered the why, let's delve into the how. There are various ways to use Bitcoin for bill payments, and I'll share some tried and true methods.
Method 1: Selling Bitcoin then Paying Bills
The simplest approach involves selling the equivalent fiat amount of Bitcoin and then settling your bills in cash, bank checks, or through bank deposits.
Determine the Bill Amount: Identify the amount in fiat currency you need to pay your bills.
Sell Bitcoin: Find a peer-to-peer platform like Bisq, RoboSats, Hodl Hodl, an ATM, or an exchange. Sell the equivalent fiat amount of Bitcoin.
Receive Fiat: Obtain the fiat currency through cash, a bank check, or depositing it into your bank account.
Pay the Bill: Settle your bills using the traditional payment methods you've chosen.
Method 2: Trade Bills for Bitcoin
Find someone who's interested in Bitcoin. Offer to let them pay your bills in exchange for Bitcoin. This method has stood the test of time and often involves connections made through meetups or online platforms.
Find a Trade Partner: Find someone willing to pay your bills in exchange for Bitcoin. Local meetups or online social platforms can be useful.
Negotiate Terms: Discuss and agree on the terms of the trade, ensuring a fair exchange rate.
Transfer Bitcoin: Once terms are settled, transfer the agreed-upon amount of Bitcoin to your trade partner.
Bill Settlement: Allow your trade partner to settle your bills using their preferred payment method.
Method 3: Credit Cards to Bitcoin
This is a popular method of the #GetOnZeroFiat users by paying your bills with a credit card and selling the equivalent Bitcoin before the due date.
Credit Card Payments: Use your credit card to pay your bills as usual.
Monitor Due Dates: Keep track of your credit card payment due dates.
Sell Bitcoin: Before the payment due date, sell the equivalent fiat amount of Bitcoin.
Deposit to Bank: Deposit the fiat amount into your bank account.
Settle Credit Card: Use the deposited funds to settle your credit card balance.
Method 4: Crypto Cards in Action
Send the fiat equivalent of Bitcoin to a crypto card and use it to settle your bills. This method served me well when I first started my Bitcoin bill-paying journey.
Get a Crypto Card: Obtain a card from an exchange such as Coinbase or Crypto.com.
Load Bitcoin: Transfer the fiat amount worth of Bitcoin to your crypto card.
Use Crypto Card: Use the card to pay your bills wherever debit or credit cards are accepted.
Method 5: Bill Payment Platforms
Explore the growing number of bill payment platforms like BitPay, Spritz Finance, Living Room of Satoshi, Bylls, etc. Sign up, go through the KYC process, and use Bitcoin to pay your bills seamlessly.
Choose a Platform: Select a bill payment platform like BitPay, Spritz Finance, Living Room of Satoshi (Australia), or Bylls (Canada).
Sign Up and KYC: Sign up for the service and complete the necessary Know Your Customer (KYC) process.
Link Bills: Connect your bills to the platform.
Pay with Bitcoin: Use your Bitcoin to pay your bills through the chosen platform.
Method 6: Prepaid Visa/Mastercards Cards
For the non-KYC route, outside of peer-to-peer trading, is the idea of using prepaid cards and gift cards to handle bill payments. I’ve personally used this method for some time with little to no friction. Check to see if the platform accepts Visa or Mastercards (most do).
Total your bill amount: Gather all your bills and calculate the total amount of fiat needed.
Purchase Prepaid Card: Go to platforms such as The Bitcoin Company, Bitrefill, Coinsbees and purchase a prepaid card with Bitcoin. Note: Some platforms have limits such as Bitrefill. They allow you to purchase up to $200 at a time, after that, you’ll need to verify your account for larger purchases. The Bitcoin Company has a max limit of $1,000 cards up to $10,000 per month.
Pay the Bill: Pay the bill with the Visa or Mastercard prepaid card.
Long-Term Benefits for Families
For families, integrating Bitcoin as a payment rail can be a wise move for the long term. It's not just about paying bills; it's about laying the foundation for a financial future that transcends generations. Bitcoin, with its potential for wealth preservation, becomes a tool for securing the prosperity of your family.
Conclusion
Making Bitcoin your money is not just about financial gains; it's about empowerment, preserving wealth, and embracing a future where the way we handle money is as dynamic as the world around us.
Join me in this journey, and let's redefine the way we pay our bills.
Until next time,
Rare Passenger
Block Height: 816 150
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