Austin and Beccy Craig are the couple who planned on living the first 90 days of their married life on Bitcoin. And they did. By the time they returned from Singapore on November 2 2013 they had clocked up 101 days paying for flights and hotels with the cryptocurrency.
Now that Expedia* has announced that it will accept Bitcoin for hotel bookings (Coinbase, a digital wallet, is the processing option) we asked Austin a few questions about their experiences with Bitcoin.
Isn’t this just the latest money craze? Like how people went crazy buying stuff in Second Life?
“Many people seem to think Bitcoin is just a craze, but I’m persuaded that it’s much more than that. Buying virtual goods in Second Life or World of Warcraft is just a layer removed from regular dollars and national currency. Those might as well be coupons. It’s the same thing.
“But when you look closely at Bitcoin, it becomes clear that this really is a whole new conception of money. It has strengths over the dollar. It can do things that national currencies can’t do.
“I can send and receive funds to and from anywhere in the world, instantly, with virtually no cost, without using a trusted institution, like Visa, Paypal, or the bank. That is a total game changer.”
How prevalent is Bitcoin in travel now?
“While Bitcoin has gotten a surge in notoriety over the past year, and a huge surge in adoption, it’s still relatively rare. You’re not likely to stumble upon many merchants who accept Bitcoin, but if you search them out, there are usually a few in any major city.
“We found some great merchants and met some amazing people we probably wouldn’t have if we weren’t using Bitcoin.”
What is it used for?
“There are really all kinds of businesses that accept Bitcoin, and more every day. Right now, most merchants who accept Bitcoin are early adopters driven by technophilia and/or ideology. As such, many of those businesses aren’t uniquely suited to Bitcoin, the people just like it.
“That seems to be the case for many brick and mortar businesses accepting Bitcoin, like restaurants. The restaurants I’ve been to and paid in Bitcoin don’t have many customers paying in Bitcoin, whether that’s in Provo UT or New York City.
“Online merchants, though, are perfectly suited to accept Bitcoin. It is a web-based currency, after all. Probably the most common kind of business to accept Bitcoin would be online electronics shops.”
What’s the advantage of Bitcoin over local currency or US dollars?
“There are scenarios where Bitcoin is much better than the US dollar. It gets used today for remittances because of its speed and ease, foreign exchange trading which otherwise have transaction fees, micro-payments where traditional transactions would be cost prohibitive, and trade in places that have political/economic conflict.
“Think about areas in Africa with rampant inflation, or buying a digital download from a musical artist in Iran where no Western money transmitter is legally permitted to operate.”
I’m going on a round-the-world trip. How do I get some Bitcoin and how much should I have with me?
“Getting Bitcoin is pretty easy. You can buy it from somebody you know, with regular old dollars. You can buy from somebody you don’t yet know, through LocalBitcoins.com. You can buy from an exchange in your country.
“I’ve used Coinbase in the US. It’s very very easy and reliable. When we travelled, we carried some Bitcoin on paper wallets (essentially our Bitcoin private key printed out).
“We had some on my Android phone. We also kept a lot saved in Coinbase. How much you bring along is totally up to you!
“That depends on where you’re going and how much you expect to spend. Just make sure you don’t run out before you figure out the return trip!”
What’s the most Bitcoin-friendly place in the world?
“The most Bitcoin friendly neighbourhood in the world might be Kreuzberg, Berlin. There are a couple dozen businesses in Berlin that accept Bitcoin, many in Kreuzberg, and most of them started accepting because of the efforts of one man: Joerg Patzer.
“He owns the restaurant Room 77, and has been a vocal, persistent advocate for Bitcoin from long before its recent surge in publicity. But the truth is that even Kreuzberg Berlin doesn’t have more than a couple dozen merchants accepting Bitcoin. That crown could be taken by any city that really wanted it.”
What were the limitations?
“Right now, the biggest limitation of Bitcoin is the network. There just aren’t very many merchants accepting it. The next biggest problem is reliance on the Internet.
“If you don’t have a signal, you can’t do the transaction. I was surprised how often that was a problem, in the US and in Europe.”
The absolute bottom line about using Bitcoin for travel?
“It’s nice to forego the currency exchange, but Bitcoin merchants are pretty sparse.
“Bring some cash and cards, just in case.”
Related article:
Is Bitcoin The New Global Travelling Currency? Read this post.
* Expedia joins Travel Keys, CheapAir.com (and Amtrak) and Virgin Galactic in accepting the currency.
(Featured image: Zach Copley)
