A Guide to Investing in Cryptocurrency: How to Buy Bitcoin

Can I Use My Bitcoin to Make Purchases?

Sure. It is now being accepted as payment by some merchants. These range from little boutiques to a ski resort in Switzerland. However, the majority of individuals just use Bitcoin as a store of value or as an investment, similar to how people buy gold but don’t use it to purchase everyday items.

Some doubters are sceptical that cryptocurrencies will ever replace fiat money. But in October, PayPal Holdings Inc. said that it will permit users to use it and other virtual currencies to purchase at the 26 million merchants on its network, giving Bitcoin a boost as a form of payment in 2020. Elon Musk stated in 2021 that Tesla Inc. will permit Bitcoin transactions before reversing course due to environmental concerns, only to do so again under the condition that mining be carried out using more renewable energy.

How Would a Bitcoin ETF Work?

The introduction of an ETF connected to Bitcoin was one of the exchange-traded fund industry’s most anxiously awaited milestones. In 2021, after nearly a decade of waiting, that finally transpired. Financial institutions have long asserted that establishing funds tied to Bitcoin will make it simpler for investors to obtain the cryptocurrency. Before it became popular, that might have been the case, but as more outlets have emerged for buying and selling cryptocurrency, the argument has somewhat lost its lustre.

However, interest in Bitcoin-linked ETFs has remained strong. The first ETF to be listed in the United States, the ProShares Bitcoin Strategy ETF, debuted as the second-heaviest traded fund ever.