It’s hard to ignore Bitcoin. After all, it seems to be in every other headline, with news about its skyrocketing value becoming an even hotter topic of conversation. But you may be thinking, “What can I buy with Bitcoin in Australia?”
Bitcoin is more often than not seen as an investment vehicle. That said, there are online stores that accept Bitcoin for goods, services, and experiences. The key is to know where to look, who accepts Bitcoin, and what types of purchases are possible before getting started.
What Can You Buy with Bitcoin in Australia?
Before you can run out and start spending Bitcoin, you need to know who accepts Bitcoin. Here are the primary things that Bitcoin can be used to purchase in Australia.
Everyday Goods & Services
Because of its wide adoption and availability, there are a number of everyday goods and services that can be paid for using Bitcoin. Many dining establishments, retail stores, cafes, grocery stores, and even travel bookings can be paid for using Bitcoin.
Not all merchants currently accept Bitcoin, but there are more and more in-person and online stores that accept Bitcoin. As confidence in Bitcoin continues to grow, so does its adoption rate. The list of businesses in Australia that accept Bitcoin as a payment method continues to grow.
Large Purchases & Investments
Bitcoin is even starting to become an acceptable form of payment for larger purchases. Things like property, cars, and even luxury services can be bought with Bitcoin. Some vendors accept Bitcoin outright, though you can convert Bitcoin to a fiat currency as well.
Before you wonder, “What can I buy with Bitcoin in Australia?” you need to make sure that you know about the potential compliance and tax repercussions for Australian users. Though the landscape of acceptable Bitcoin vendors is growing, it is better to be safe rather than sorry.
How Does Paying with Bitcoin Work in Australia?
Now that you have a better idea regarding who accepts Bitcoin as a payment method in Australia, you need to know how the process of paying with Bitcoin works. Our guide will help you to better understand the implications that come with using Bitcoin as a payment method.
Payment Methods
The most common route is to use direct Bitcoin payments to vendors where they are accepted. It is also commonplace to make payments through crypto-payment processors, or you can convert your Bitcoin to AUD (or your preferred currency) in order to finalise your transaction.
The number of ways that Bitcoin can be used directly is growing rapidly. QR codes are becoming more commonplace. Merchant wallets, PayID and bank transfers, and crypto cards can also be used, especially when it comes to converting your crypto into fiat currency.
Regulation & Tax Considerations
When it comes to using Bitcoin for payments in Australia, there are a few regulations and tax considerations to keep in mind. For instance, using Bitcoin for payments may trigger capital gains tax (CGT). It all depends on how long you have held your Bitcoin.
The key to avoiding pitfalls with regulations and tax filings is to keep detailed transaction records. Keep in mind that most merchants currently accepting Bitcoin are obligated to use a payment processor that is compliant with Australian regulations, particularly anti-money laundering (AML) and know-your-customer (KYC) rules.
Where in Australia Can You Use Bitcoin?
Before you run out looking for Bitcoin ATMs in Melbourne, it’s time to take a more specific look at where you can use Bitcoin. There are three primary means by which Bitcoin can be used as a payment method in Australia: at retail and online stores, for travel and travel-related services, and at businesses that offer crypto as a payment method.
Retail & Online Stores
The number of in-person and online retailers that accept Bitcoin as a payment method continues to grow. Though it isn’t as comprehensive as those that accept fiat currencies and credit cards, the list is becoming larger all the time.
You can buy food at USA Foods in Melbourne or coffee at Crypto Coffee in Brisbane. Purchase watches at Watch Kingdom in Sydney, furniture at Hunt Furniture in Adelaide, or buy your favourite electronics from Elite Electronics, an online electronics retailer.
Travel, Experiences & Services
Bitcoin can also be used to pay for travel bookings, hotel accommodations, and even entertainment. Some offer direct Bitcoin payments, but there are plenty of vendors who have partnerships with services that offer conversion services that exchange Bitcoin for AUD to finalise purchases.
The list of services accepting cryptocurrencies like Bitcoin continues to evolve as well. You can pay for services at a dental clinic, sign up for a fitness centre, or pay for any number of professional services. Just make sure that the business in question accepts Bitcoin as a payment option before booking services.
Businesses with Crypto Payment Options
More and more merchants are dipping their toes into the cryptocurrency market through the use of third-party platforms. This makes it a lot easier for customers to pay using Bitcoin even if the merchant in question doesn’t offer direct Bitcoin payments.
It is important to verify that the merchant in question accepts Bitcoin and/or cryptocurrency. There are two ways to verify this. The first is a cursory Google search. There are plenty of aggregated lists that tell you which stores and businesses in your area accept crypto. You can also check the website of the business in question or call them directly to verify.
Benefits & Limitations of Using Bitcoin as a Payment Tool
There is a lot to like about using Bitcoin as a payment tool, especially with access to convenient methods like Bitcoin ATMs in Sydney. One of the biggest advantages is that transactions become borderless. International payments become far faster and more convenient without escalating costs.
Users also benefit from the privacy that comes with cryptocurrencies. In some cases, using crypto can provide early access to products and services from merchants who take a crypto-friendly approach. The list of benefits when it comes to using Bitcoin continues to grow, especially when travelling overseas.
That said, it isn’t all sunshine and roses. For instance, price volatility can change how much buying power you have. The list of merchants compared to those offering traditional fiat currencies and credit cards is a lot smaller. There are also potential conversion fees to consider, not to mention any accounting and/or tax complications.
It is important to remember that Bitcoin is not actually considered legal tender in Australia. Anyone who accepts Bitcoin payments is doing so voluntarily. Unlike fiat currencies, it is basically at the merchant’s discretion. It can, at times, be inconvenient to find merchants who accept Bitcoin as a payment method.
How to Get Started: Using Bitcoin to Buy Something Today
The key to using Bitcoin at one of your favourite merchants is to know how to get started. The first thing to do is to ensure that you have Bitcoin in your wallet. You can access a wallet either through a private, “cold storage” drive or through a cryptocurrency exchange.
Make sure that any merchant you are considering actually accepts Bitcoin as a payment method. Check their website, call to ask, and make sure to verify which payment processor they use before you just jump forward.
After confirming that your preferred merchant accepts Bitcoin, make sure that you copy their Bitcoin address. More often than not, you can copy a QR code made available by the merchant. Make sure that you send the proper amount of Bitcoin and keep things like confirmation time and network fees in mind.
Finally, make sure that you keep your receipt. Detailed transaction records are necessary when it comes to filing your taxes. Given how comparatively muddy the crypto landscape is, there is no better tool to have at your disposal than having all of your receipts available.
At the end of the day, a few helpful tips will go a long way. For starters, make sure to use a fresh wallet address for each transaction. The more you use a wallet address, the less private it becomes. For those who value protecting their information, a fresh wallet address is a must.
Before making a payment, make sure to check for any transaction fees. It is far too easy to assume the price of goods or services only to get hit by those fees you forgot about. During high network traffic periods, fees can be substantially higher, which can make your transaction more expensive.
Finally, be aware of the return or refund policy from the merchant in question. Even if they accept Bitcoin as a payment option, they might not treat refunds the same for crypto as they do for fiat payments. Don’t make any assumptions and go into the process with as much information as you can.
