If you’ve recently received your first bitcoins, then you’re probably wondering what you can do with this new form of digital money. While you may think that there are limits on what you can expect to purchase with your bitcoins, the reality is that you can basically use your newly acquired cryptocurrency in the same way as normal fiat currency. In fact, there are many things you can do with bitcoin that you simply cannot do with regular government-issued currency. These exotic use cases are what gives bitcoin its underlying value. Let’s take a look at some of the best applications for your new bitcoins.
Hoard Your Bitcoins
Although there are plenty of new financial innovations being built around bitcoin right now, the reality is that hoarding them may still be your best option. After all, the unit of account in the bitcoin protocol will have to rise much higher if it’s going to be some form of global money in the future, so why not hold onto them and enjoy the benefits of a deflationary store of value? Some people say that hoarding bitcoins is wrong and it doesn’t help the bitcoin economy grow, but the reality is that making sure that the bitcoins are in strong hands is the best way to make sure the market cap of all the bitcoins in the world expands over time.
If you plan to keep your bitcoins to yourself, then you should look into various forms of cold storage. Whether you’re storing your bitcoins in an online wallet or on an Internet-connected computer, it’s difficult to make sure all the proper safeguards are in place. Taking your bitcoins offline will allow you to keep them out of the hands of hackers. Paper wallets, hardware wallets, and offline computing devices are all viable options for cold storage. Just make sure that your private keys are never online (Read more at “What are Private and Public Keys”).
Reward Content Creators with Your Bitcoins
One of the first apps for bitcoin over the past few years has been tipping. This is the process of sending anything from a few pennies to multiple dollars to someone over the Internet. Tipping is one of the core tenants of the Dogecoin community, although there are plenty of people who are willing to tip bitcoins as well. Changetip is the best available option for tipping others over the Internet right now. If you see a Reddit post, Tweet, or YouTube video that you like, it’s rather easy to instantly send some bitcoins to the creator of that content. Some people believe that these sorts of tipping mechanisms will eventually replace the annoying online advertisements that are so prevalent in the content world today.
Roll the Dice with Your Bitcoins
In addition to tipping, betting on the roll of the dice is another major use case of bitcoin right now. In fact, Satoshi Dice once accounted for more than half of all the transactions on the bitcoin network. Gambling has become a huge selling point for bitcoin as a payment option because the industry is in a legal gray area in various jurisdictions around the world. As lawmakers continue to drag their feet on offering clarity for online gambling regulations, bitcoin offers a way to bypass the dinosaur banking system. Remember to remain responsible when you’re playing any of these dice games. After all, you’re playing with real money!
Spend Your Bitcoins
Shopping online is another option when you receive your first bitcoins. Overstock, TigerDirect, Newegg, and many other online retailers already accept the digital currency, and you may even be able to get a large discount on a purchase when you use bitcoin at one of these online stores (Read more at “10 Presents You Can Buy with Bitcoin” or Bitcoin Accepted Here).
Although bitcoin is not nearly as possible in real-world retail outlets, there are still usually at least a few options for spending bitcoins locally in all of the major cities around the world. You can use coinmap.org to see if there are any bitcoin merchants in your area. If you’re a true bitcoin fanatic, then it makes sense to go to your local bitcoin stores and support their businesses.
Finally, you can spend your Bitcoins through trading. On CEX.IO you can use them to buy other cryptocurrencies while earning some gain on price fluctuations (Read more at “Buy Bitcoins” and “Sell Bitcoins“).
Share Your Wealth with a Friend Anywhere in the World
At the end of the day, it’s important to remember that bitcoin is all about being able to instantly send money to anyone in the world in a censorship-resistant manner. When you keep that in mind, it becomes obvious that you can literally send money to anyone else with little to no fees. It doesn’t matter if you owe money to a friend in another country or you need to pay your roommate your share of this month’s rent. Bitcoin gives you the power to transfer value to any person in the world, as long as they have access to the Internet.