Whether you are ready for it or not, the use of digital currencies as a viable means of transacting business is gaining in popularity. While it's hard to imagine, there is a reasonable chance fiat currencies could disappear within the next 10 years.
If you already trade and purchase goods and services with Bitcoin, you can consider yourself one step ahead of the crowd. Were you aware that you can book a full luxury vacation, using Bitcoin as your only means of exchange? If you didn't realize that before now, you now know it's possible.
To help you understand the process of booking a luxury vacation with Bitcoin, you should consider following these five tips.
- Understand the Process
When you pay for your luxury vacation with Bitcoin, you are in fact paying with actual Bitcoin. On the other end, merchants may not be getting paid in Bitcoin.
Most travel merchants don't want to deal with the volatility issues surrounding cryptocurrencies. To avoid losing Bitcoin value after receiving a payment, most travel merchants set up their crypto payment platforms as follows. When payments come in, they are immediately and automatically converted to fiat currency. From there, the revenue is transferred to bank accounts based on the merchant's predetermined banking schedule.
Bottom line, while you are speculating, they are not.
- Careful When Speculating With Bitcoin
With Bitcoin sitting in your crypto wallet waiting for you to make a payment on your travel costs, you are speculating. You are hoping that the value of Bitcoin doesn't drop before you pull the trigger.
To avoid missing out on paying for your vacation with Bitcoin due to valuation issues, you have two choices. First, you can speculate and wait until Bitcoin moves in value before you initiate your payments. Using this strategy you could either pay using Bitcoin earning if it goes up in price or buy Bitcoin using fiat if it goes down. This way you can use some of the Bitcoin to pay for the trip and the rest you have bought low and can wait for it to go up for more earnings. For example, you could exchange BTC to INR when the price is up and pay for your trip to Australia to get a better deal on travel.
Second, you can hold cash in your crypto wallet until you are ready to pay your travel merchant. That's the point where you purchase Bitcoin and immediately send your payment.
- Identify in Advance Travel Merchants that Accept Bitcoin
If you are committed to using Bitcoin to pay for your luxury vacation, you need to understand there are limitations. The number of travel merchants that accept Bitcoin is still relatively small.
Before you make your travel plans, you need to identify which merchant or merchants you want to use. The top travel merchants that accept Bitcoin include Cheapair, aBitSky, Virgin Galactic, Travala, and Bitcoin Travel.
- Plot Out Your Vacation Plans Ahead of Time
While trying to find the right travel merchant, you should also be plotting out your vacation. Your plan should include where you want to go, the kinds of accommodations you want, and the attractions you want to see. Once you have a plan in place, you can match your plan up with merchants that can help you and accept Bitcoin.
- Use Gift Cards
If you can't find a way to pay for your vacation plans directly with Bitcoin, you might consider this alternative. You can find merchants that offer all-purpose gift cards and will accept Bitcoin payments. You can purchase gift cards with Bitcoin and use gift cards to pay for your travel costs.