WHAT IS BITCOIN?

In 2009, Bitcoin surfaced as a new form of currency, kicking off a series of cryptocurrency creations sometimes referred to as “Bitcoin forks.” The idea behind Bitcoin, the original cryptocurrency, was to be able to complete transactions devoid of any middlemen, like banks. This way, when you buy gold and silver with Bitcoin, you do not have to worry about factors including, but not limited to, credit card fees.

The creator of Bitcoin remains mysterious. Although officially it was created by a mysterious person named Satoshi Nakamoto, there is no proof that this is the name of a single person. Many theorize the creator of Bitcoin was actually a team of developers. If you translate the name literally, “Satoshi” means quick-witted or clever, and “Moto” means foundation. Today, the figures behind Bitcoin’s origin remain mysterious. Consequently, in the beginning, many investors seemed to think only suspicious people would want to use Bitcoin. This is owing to Bitcoin’s anonymity and lack of government regulations. However, today, Bitcoin is highly respected as a method of transaction and investment. 

Any form of Bitcoin commerce is public information, however, it only displays the user’s wallet ID in a public log. Distinguishable information like a name, address, or items purchased are not publicly accessible. One of the best ways to visualize how Bitcoin works is by comparing it to a hallway of lockers. This is especially appropriate because there is a finite amount of Bitcoin just as a hallway can only hold so many lockers. Everyone can see the lockers, but it is not clear who owns which locker, and what is inside unless you have the code to open it!

BUY GOLD AND SILVER WITH BITCOIN: SETTING UP YOUR BITCOIN WALLET

 

You can use the most secure money for the internet to buy gold and silver with Bitcoin at Bullion Exchanges. But before making any purchases using Bitcoin, you should select a Bitcoin wallet and add funds!

A Bitcoin Wallet refers to any web or mobile application in which you can manage your Bitcoin currency. You can set this up on your mobile device or limit it to just your computer. After setting up your wallet, you can use it to send, receive, and store Bitcoins. So, once you create your wallet and grab Bitcoins, you can then buy gold and silver with Bitcoin from Bullion Exchanges. The wallet is basically the equivalent of a bank account. You can receive, hold, spend, or send your Bitcoin. You can find the official list of wallets on Bitcoin.org.

When setting up your wallet, you can choose between two kinds of wallets. The first is a software wallet, which you’d install as an application onto your computer and/or mobile device. The second option is a web/hosted wallet, which is hosted by a third party. Web wallets are often simpler to use, but take the time to make sure that you are working with a legitimate site before trusting it with any of your personal information.

HOW TO SET UP YOUR BITCOIN WALLET 

Once you’ve installed your selected Bitcoin wallet, you will receive your Bitcoin Address along with a Security Key which will be your credentials for sending or accepting Bitcoin payments. After you’ve set up your Bitcoin wallet, you can’t yet buy gold and silver with Bitcoin. First, you have to fund it with Bitcoin. There are several ways of acquiring Bitcoin, the most common being by:

  • Credit/Debit card –  purchase Bitcoin with your credit/debit card and you’ll get them instantly reflected in your wallet.
  • Bank Transfer – buy Bitcoin by connecting your US bank account to your wallet. Unlike card transactions, bank transfers have a certain processing period, so funding your Bitcoin wallet by using this method may take up to 1-4 days.
  • Incoming Payment – you can almost instantly receive Bitcoin as a payment from other holders of Bitcoin wallets.
  • Cash – if you have cash, you may use Bitcoin ATMs to instantly fund your Bitcoin wallet.
  • Exchange Platforms – you can buy or trade large amounts of Bitcoin at the market rate on the existing exchange platforms.

BUY GOLD AND SILVER WITH BITCOIN AT BULLION EXCHANGES

 

Once your Bitcoin currency registers in your wallet, you can buy gold and silver with Bitcoin. First, add your desired bullion items to your shopping cart on Bullion Exchanges’ website. Then, select ‘Bitcoin’ among the available payment methods. Finally, you can proceed to the payment process. After you provide all the details about your order, your webpage will redirect to the BitPay checkout page where you can complete the payment by:

  • Scanning the QR Code (Scan) – the invoice is encoded in a QR code which you must scan with your Bitcoin wallet app. When you can see the invoice in your app, approve it, and the amount will be sent to Bullion Exchanges.
  • Sending a payment (Copy) – access your wallet, fill in the displayed Bitcoin address and exact Bitcoin amount (BTC), and send the payment to Bullion Exchanges.

The invoice will be active for only 15 minutes to ensure exchange rate accuracy. Once you complete your payment, it may take up to 24 hours for your payment to gain the 6 confirmations on the Bitcoin network. Confirmation represents a new block in the blockchain. Each block represents a set of new unique Bitcoin transactions. Every time a new block is built, the older blocks are reconfirmed. Six confirmations (blocks) is the general recommendation for being 99.9% sure that a transaction won’t get canceled. 

Additionally, Bullion Exchanges also accepts other forms of payment through BitPay. You can download the application for BitPay on the App Store for iPhones or Google Play Store for Androids. In September 2020, BitPay expanded with Wyre to make buying Bitcoin and other cryptocurrencies much easier. You do not need to have a Wyre account to buy Bitcoin, but this merger helps make blockchain payments simpler and faster. This enables new users to start trading with cryptocurrency more efficiently and for everyday purchases where vendors accept crypto.


BITCOIN PROS

  • Convenience – with a Bitcoin wallet, you can send payments and make purchases anywhere in the world since all transactions occur online.
  • Freedom – the Bitcoin system offers complete money control as there are no restrictions, no limits, and no holidays.
  • Speed – since there are no intermediaries involved, a Bitcoin transaction has the fastest settlement compared to other payment methods.
  • Security – Bitcoin ensures protection against identity theft since transactions are never associated with the personal identity of the user. Payments are publicly anonymous, so transactions are not traceable back to the owner. Also, there are additional methods for adding extra protection (encryption and backup).
  • International currency – Bitcoin can be accepted and used at any merchant around the globe. Therefore, there is no need for any additional conversion or conversion fees when making purchases.
  • Low transaction fees – transaction fees for Bitcoin payments or purchases are very low and do not vary based on the overall amount.
  • Divisible currency – when calculating equivalents in Bitcoin, you can go up to 8 decimal places (one-hundredth millionth of a Bitcoin). It should become even more precise going forward.
  • Insurance – the cryptographic infrastructure on which the Bitcoin protocol is based is several times more secure than the technology used by banks and credit cards.

The list of Bitcoin payments’ advantages is quite impressive. The main benefit of having Bitcoin is the convenience of its transaction process. Specifically, this process allows you to bypass some of the hassles of using a credit card online. Because it functions as a single uniform piece of currency, Bitcoin transcends borders and languages, and current exchange rates. Although the current price to buy Bitcoin is high, those who buy gold and silver with Bitcoin usually appreciate lower processing fees.

BITCOIN CONS

  • Volatile exchange rate – since its inception, Bitcoin’s value has experienced various price fluctuations more frequently and drastically than any other currency form. For this reason, many do not recommend cultivating savings with Bitcoin, for now. However, the volatility is on par to decrease over time.
  • Irreversibility – Bitcoin transactions are instant and irreversible hence they can be canceled. However, recipients can refund transactions based on their Refund Policy.
  • Transparency – all Bitcoin transactions are public, traceable, and permanently stored on its network based on the user’s Bitcoin address. Therefore, anyone can see all transactions and the balance of any address, and for this reason, it’s advisable to create several addresses or wallets to protect privacy.

Because the government does not regulate Bitcoin, it does not have the same security and privacy that government-regulated currencies do. Additionally, there is the incredible volatility of Bitcoin’s value. If you follow Bitcoin’s price history, you can often see highs and lows constantly oscillating. Keep in mind, there’s always the risk that the “Bitcoin Boom of 2017” could turn into the “Bitcoin Bubble”, and pop. This would leave its buyers with much less value for their investment. Finally, unlike purchases made through credit/debit, PayPal, or the like, Bitcoin offers no guarantees. Any purchase made through Bitcoin is instant, irreversible, and unprotected. Of course, buying through an online merchant such as Bullion Exchanges negates this risk to an extent. It is always possible to contact our customer service for assistance with a return or refund. However, purchases made through a non-reputable dealer could end in a big loss.

BUY GOLD AND SILVER WITH BITCOIN AT BULLION EXCHANGES

 

At Bullion Exchanges, we promise secure and convenient payment for all of your favorite gold, silver, and platinum products. Should you choose to make a purchase with Bitcoin, we will add a 1.5% discount on the credit card price. For more information regarding payment options, take a look at our Terms & Conditions, or feel free to contact us through our live web chat feature, via email at info@bullionexchanges.com, or by calling 800.852.6884.

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