Have you ever wondered if you can use bitcoin to pay for travel? Or, perhaps you are wondering what bitcoin is. We will attempt to answer both questions for you.
The first cryptocurrency was established in 2008 in the form of bitcoins. Bitcoins are basically a digital cash system that is separate and independent from government cash. Transactions are based on cryptographic methodologies. The concept centers around a decentralized distributed ledger of all transactions. The ledger is known as a “blockchain”. Bitcoin payments offer an alternative to traditional forms of payment and do not involve banks.
Many companies have adapted the acceptance of bitcoin for travel. These include hotels, airlines and other travel related businesses. Just as there are many burger chains, crypto currency issuers are abundant and include such names as: Bitcoin, Ethereum, Bitcoin Cash, XRP/Ripple, Cardano and Stellar. Unlike cash, there is no actual coin or paper currency. Your money simply resides in your crypto account much as you might store money in your Venmo or PayPal account. You then use those funds to pay others – just as you would with Venmo.
There are currently more than 2500+ businesses that accept bitcoin as a form of payment. While you won’t find any of the major airlines or hotels on the list of those accepting bitcoin, it is only a matter of time before they adopt it. In the meantime, you can use bitcoin with companies like CheapAir.com, Bitcoin Travel, Travel by Bit and many others who accept crypto as a payment for airline and hotel bookings. Companies like eTravelSmart are transportation brokers that allow you to book ground transportation using crypto. Bitcoin Travel is an agency that has been around since 2011 and offers flights, hotels and rental car options to its customers.
While there are many companies that serve as an exchange of cash to bitcoin, remember that this in an unregulated industry and there are many different companies that operate as exchanges. A very popular exchange is coinbase.com. The rates of a bit coin fluctuate much like the stock market. If you would have purchased a bitcoin in 2010 for $100, it would have an approximate value of $12,500 today.