Common Cryptocurrency Questions and Answers

This article looks at three common questions that people have when they're exploring cryptocurrency. For those new to cryptocurrency, it can be confusing, but once you understand how it works and how it can be used anyone can invest and start using Bitcoin or other currencies.

Can I Use Bitcoin to Buy a House?

The short and simple answer to this question is yes you can buy a house with Bitcoin or other cryptocurrency. However, as with most things, it’s complicated and requires more in-depth explaining.

If you are looking to purchase a house with cryptocurrency, then don’t expect it to be easy. To begin with, you will need to find a seller that is willing to accept Bitcoin or another cryptocurrency in the first place. This is easier said than done, and although cryptocurrency is becoming more popular, it might take you a while to find a seller willing to accept it as payment for a large physical asset like a house.

If you do manage to find a seller on the open real-estate market, then you will need to find a company who will be able to manage and facilitate a cryptocurrency transaction with appropriate insurance. Some may even ask you to cash out, defeating the point of buying with Bitcoin or your chosen currency in the first place.

There are other alternatives, including specific online marketplaces that have been set up to deal with this type of transaction. They connect people peer to peer and only show listings where people are willing to accept cryptocurrency as payment for their property. Despite this, your choice of property and location is likely to be greatly reduced than if you cash out and pay for a house with cash.

Can I Use Bitcoin to Settle a Debt?

This is a common question, and the answer depends on who you are settling a debt with. If you owe money to a business, they may be willing to accept cryptocurrency as a payment by using something like a Bitcoin debit card. It will largely depend on the amount owed and the businesses ability to process it.

However, if you haven’t paid the debt off on time or have failed to make regular payments it’s likely they will have sold the debt on to a collection agency like TransWorld Systems which will leave a mark on your credit score. If you’re wondering How to Remove TransWorld Systems from Your Credit Report, you will need to make a payment or sort out a payment plan. The likelihood is that they won't accept a cryptocurrency payment so you will need to cash out or find an alternative method of payment.

If on the other hand, you owe a debt to a friend or relative, they may be willing to accept cryptocurrency and part of full payment. If not, you will need to find out how to cash out your currency so you can pay a business, debt collection agency or friend or relative with cold hard cash.

How can you release it as cash?

Go to a Bitcoin ATM – This is probably the easiest way to convert your Bitcoin or other cryptocurrencies into legal tender for your country. There are now thousands of these special Bitcoin ATM’s all over the world which are usually located in major cities.

The ease of exchange does come at a price, literally. The exchange rate tends to be worse than if you were to make an exchange on an online marketplace, and there are additional fees charged by these ATM’s to withdraw your cash.

Exchange it on a Cryptocurrency Exchange – There are a lot of online services that allow people to purchase a range of different cryptocurrencies. Some are even available to download as an app on your smartphone. In addition, some of these services allow you to sell cryptocurrency too and offer much more favorable rates than if you were to withdraw cash from an ATM.

Be aware of fees and transaction limits associated with these sites and find out if you need to connect directly to a bank account.

Get a Bitcoin Debit Card – As Bitcoin isn’t controlled by anyone, you will need to find a third-party prepaid debit card provider. Companies like bitpay allow you to load your Bitcoin on to a debit card using an app and convert them into dollars. You can load Bitcoins from your wallet into the app, and you will be able to spend like a normal debit card with retailers wherever you see the Visa logo.

Sell Bitcoin to Friends or Investors – If you are looking to sell your Bitcoin to people you don’t know, then you can use an exchange as suggested above. If you are selling to friends, they will need a Bitcoin wallet, but apart from that, the exchange is simple. You can then collect the cash from them, and the transaction is complete.