Bitcoin (BTC), the first entrant in the new class of assets known as cryptocurrencies, was launched in 2009 by an anonymous programmer known as Satoshi Nakamoto. Every Bitcoin exchange is cryptographically processed by network nodes and logged in a publicly accessible ledger known as a blockchain. Does UK Accept Bitcoin? Let’s find out.
Bitcoin is a form of digital currency that exists independently of any financial institution, state, or government; can be exchanged internationally without the use of a centralized broker; and has a known monetary policy that, in theory, cannot be changed.
However, because of its volatility in addition to other complications associated with it, its acceptability has been contested in various counties.
Trading with Bitcoin is legal in the United Kingdom. Initially, cryptocurrency was mostly used for fraudulent transactions, but that is no longer the case. Bitcoin is now accepted as payment for a wide range of items, from food and beverages to clothing and other accessories.
Bitcoin Regulation in the UK
The United Kingdom does not consider cryptocurrency to be a currency and has regulated the crypto industry in various ways.
The Bank of England stated that Bitcoin cannot be defined as “money” because it lacks the basic definitional features of a fiat currency. Therefore, it does not constitute any systemic risk to the stability of the banking ecosystem. However, given the volatility of the cryptocurrency, the Financial Conduct Authority (FCA) in collaboration with the Bank of England has issued several cautions and guidelines to regulate the exchange of Bitcoin in the UK.
Famous companies that Accept Bitcoin in the United Kingdom
Not every major company and retailer in the UK accepts bitcoin. Some of the famous companies that accept it include:
Microsoft: Customers can use Bitcoin to buy apps, books, console updates, and movies from the Microsoft Store.
Etsy: Although Etsy does not accept bitcoin, independent merchants on Etsy are not prohibited from accepting it.
Other major retailers that accept Bitcoin include Overstock, Tesco, retailers on Amazon, etc.
How to Purchase Bitcoin in the UK
1. Select a cryptocurrency exchange: Top Bitcoin dealers in the U.K include eToro, Bitstamp, Crypto.com, Binance, Coinjar, AQRU, and Huobi.
2. Select a payment method: Different platforms offer different payment methods. Popular methods of funding your bitcoin wallet include bank transfer, PayPal, debit or credit card, and transfer from another crypto wallet.
3. Make a Purchase: Once your account has been funded, you can proceed to purchase your desired unit of Bitcoin.
4. Choose a secure storage option: any cryptocurrency exchange has an integrated Bitcoin wallet or at the very least a preferred partner where you may store your Bitcoin safely. Some users, however, are concerned about leaving their cryptocurrency connected to the internet, where it could be easily taken by hackers.
Advantages of Trading with Bitcoin
Bitcoin eliminates third-party interference when exchanging money over the internet. It was designed to be a decentralized medium of exchange that could be used in the same way as existing currencies. Other notable benefits of the cryptocurrency include:
1. It is Global: You can transfer it over the world just as easily as cash payments. It does not go on holidays, eliminates arbitrary charges, and has no transaction limits.
2. Confidentiality: Bitcoin transactions do not require the exchange of personal information. Apart from the amount involved and the bitcoin address of the recipient, no identity information is required.
3. Security: Bitcoin payments are intrinsically more secure than traditional debit/credit card transactions due to the cryptographic architecture of the Bitcoin network. No sensitive information is requested when making a bitcoin payment. There is very little chance that your financial information will be compromised or your identity will be stolen.
4. Safety: The bitcoin network has never been successfully hacked in more than ten years of existence. It has been subjected to various degrees of tests and its system has been certified by prominent cryptographers and computer scientists.
FAQs
Which City Has the Highest Number of Companies that Accepts Cryptocurrency in the UK?
London has the most cryptocurrency-accepting businesses. Other cities with high acceptance rates include Manchester, Leeds, Glasgow, Birmingham, Sheffield, Newcastle, and Liverpool.
How can I Earn Bitcoin without Depositing Real Currency?
You can earn Bitcoin without paying by mining it. Bitcoin miners are credited in bitcoin for validating and adding “blocks” of transactions to the blockchain.
How can I Own a Bitcoin wallet?
Installing the software or app on a laptop/desktop or mobile device is all that is required to create a Bitcoin wallet.
Your Bitcoin wallet is created immediately after you download and install the app. You can then accept bitcoin into your wallet, save, or transact with it.
Final Thoughts
Bitcoin is accepted in the UK but because it is not legal tender, it is up to individual businesses to either accept or reject it as a medium of exchange.
According to the Financial Conduct Authority, anyone making a Bitcoin payment in the UK will not be covered under the Financial Services Compensation Scheme (FCA). This means that if there is a problem with their transaction, they are unlikely to have recourse to compensation or a resolution mechanism.
