As the rest of the world falls into panic with every dip in digital currencies, Canadian bitcoin, and cryptocurrency investors seem to be holding their own pretty well. A 2021 survey1, the latest of its kind, showed significant growth in the share of Canadians who own bitcoin: it increased from 5% in 2018 to 2020, to 13% in 2021.
Like other new and experienced investors around the world, Canadians are drawn to digital currencies because they allow faceless transactions. The privacy and blockchain-backed security that you get is too hard to resist, which partly explains why the digital marketplace is growing steadily in Canada.
Leading the pack is bitcoin. Close to 4% of Canadians used bitcoin in 20192, making it the most popular cryptocurrency in the country by a landslide. Ethereum came second with 0.9% while Ripple, Litecoin, and Dash completed the top five with 0.75%, 0.7%, and 0.5% respectively. Although 2019 can be considered a long time ago, there aren’t any more recent stats available yet that show a wider acceptance of bitcoin and other cryptocurrency tokens. However, this doesn’t mean we don’t have any further evidence to support the growth of bitcoin and other cryptocurrencies. Without a doubt, bitcoin remains the most popular and the most likely to be accepted by Canadian retailers and cryptocurrency traders. As such, we’ve compiled a list of everything you can buy with bitcoin to provide you with all the useful information you need to make the most out of your cryptocurrency.
Table of Contents
What is bitcoin and how does it work?
Let’s start at the beginning. Bitcoin (BTC) is a digital currency, otherwise known as a virtual currency, that acts as a form of payment by allowing users to send and receive money over a peer-to-peer network. Bitcoin is decentralized, meaning it is not issued or controlled by a single entity like the dollar we are used to in Canada. Rather, peers (individuals) on a blockchain – which is an open digital ledger – simply validate bitcoin transactions and transfers.
In terms of how it works, bitcoin is a digital asset that you can store either in a mobile wallet or hardware wallet. Some users choose to leave their bitcoin on a cryptocurrency exchange, but we always advise against this. Whatever the case, each coin represents bitcoin’s market price. You can either hold the coin as a digital asset or use it as a method of payment when settling transactions. But you don’t need to own a full coin; you can own a fraction of a bitcoin.
Like all other types of cryptocurrencies, bitcoin is exchangeable for fiat currency (like the Canadian dollar) on a cryptocurrency exchange. Luckily, that’s not always necessary in Canada because a good number of Canadian retailers now accept bitcoin as a mode of payment.
Is bitcoin legal in Canada?
Yes, bitcoin is legal in Canada. However, it is neither a legal currency nor a legal tender. Only the Canadian dollar is recognized as the official currency in the country.
That said, Canadian law allows the unrestricted use of bitcoin and other digital assets as commodities. Canadian Cryptocurrency Exchanges are classified as Money Service Businesses (MSB) and are legally allowed to facilitate bitcoin transfers. Furthermore, the Canadian Income Tax Act of 1990 recognizes bitcoin and digital currencies as assets that are taxable by law. In other words, using bitcoin and other cryptocurrencies passes as barter trade.
So yes, you can legally mine, hold, trade, and use bitcoin and other digital currencies as methods of payment in Canada. In fact, 31.68% of Canadian millennials are doing it5, and an additional 39% of the young population believes that bitcoin and other cryptocurrencies are lucrative investments.
Now, the big question is: what can you purchase with bitcoin in Canada?
12 things you can buy with bitcoin in Canada
Vancouver has at least 101 retail businesses that accept cryptocurrency as a form of payment, making it the most bitcoin-friendly city in Canada, according to statistics from 20215. Toronto comes in second with 72 businesses, while Ottawa and Edmonton wrap up the top four with 32 and 23 cryptocurrency-friendly businesses respectively.
These numbers suggest that you are bound to find a business that accepts bitcoin as a form of payment as long as you are based in a large Canadian city. The businesses span a wide range of industries, from real estate to jewelry and everything in between. Here’s a look at the things you can buy with bitcoin in Canada.
Real estate
It is possible to buy a home or commercial property in Canada using bitcoin since there are currently no laws preventing such a transaction. However, most real estate brokers and salespeople generally don’t accept bitcoin as a form of payment. Therefore, you may need to find an individual seller who does if you strictly want to complete the transaction in bitcoin. Granted, it may take some time, but the growing number of cryptocurrency investors in Canada means that you have a chance of finding a property owner who is willing to take bitcoin. Additionally, with the global real estate market quickly embracing cryptocurrency payments and smart contracts, it’s just a matter of time before brokers and salespeople incorporate bitcoin and cryptocurrency payments into their options.
A car
Canadian customers who want to buy a car can pay for it with bitcoin, thanks to HGregoire. Based in Quebec, the auto dealer has over 30 dealerships in the country, and it has recently started accepting bitcoin and other cryptocurrencies as a form of payment. Other dealers have been known to accept bitcoin for transactions without a “formal” offering as well.
Furniture and furnishings
There are Canadian retailers who specialize in furniture and accept bitcoin as payment. One of them is “Best Sleep”, which recently announced that “bitcoin is the future.” They make a good option if you are looking to replace your furniture and want to spend bitcoin instead of Canadian dollars.
“Overstock” is yet another alternative in case you don’t mind shopping your furniture across the border and shipping it to Canada. The U.S.-based online retailer started accepting bitcoin in 2014, making it one of the first major retailers to incorporate digital currencies in its payment methods.
Electronics
There are some tech-focused Canadian businesses that will let you shop for electronics and pay with bitcoin. Newegg.ca is one such company. It first started accepting bitcoin from U.S. customers in 2014 and has since extended the perk to Canadian customers. The platform uses Bitpay as its payment processor, making it easy for bitcoin investors to use their digital currencies to purchase electronic products. Bitcoin Marketplace is another platform where people can find several technological offerings and the price and payment options are both in bitcoins and CADs.
Eyewear
Whether you are eyeing some new eyeglasses, sunglasses, or eyewear services (like anti-scratch and anti-glare coating), you can obtain them and complete the payment with bitcoin. That is because the Canadian brand “Park and Finch” has now partnered with Bitcoin Diamond (BCD) to accept bitcoin as a form of payment.
Luxury jewelry
If you are in the mood for some gold, silver, platinum, and other types of precious jewelry, you’ll be glad to know that you can buy and pay for them with bitcoin. Beck Gold is a Canadian company that accepts bitcoin and other cryptocurrency payments. Not only that, they even allow you to trade bitcoin for gold bars and coins. This type of one-off investment may occasionally make sense if you want to store value in physical gold, whose prices don’t fluctuate as much as bitcoin prices.
Beverages
Bitcoin investors in Canada can now enjoy their favorite craft beers and home brews from Toronto Brewing. The company, which accepts bitcoin payments, is based in Toronto but delivers online orders across Canada.
Travel expenses
If you’re planning to go on a trip in or out of Canada, you can pay for your travel expenses with bitcoin rather than debit or credit payment cards. In fact, bitcoin has its own travel website – “Bitcoin.Travel” – that allows you to search for flights, places, and businesses that accept bitcoin. Alternatively, you may also use “Travala”, which is yet another dedicated travel website that lets you pay for everything with bitcoin and other cryptocurrencies.
Pay bills
Bills are a regular part of adult life, and we are happy to report this process can be made easier by using bitcoin to pay yours. If you hold bitcoin or trade cryptocurrency, it makes sense to use your bitcoin to pay your bills because you will pay a lower transfer fee compared to using payment cards or a bank transfer.
If you’re in Canada, you’ll be glad to know that Bitcoin Well allows you to pay your bills quickly and securely using Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Bitcoin Well works with 99.9% of Canadian payees. Therefore, it doesn’t matter the bill you want to pay, you can easily do so with bitcoin. That includes payments for all major credit cards.
Donations
In case you’re feeling generous, you may donate some of your bitcoin to a worthy cause. There are several Canadian charities that accept bitcoin and other cryptocurrencies. Depending on what you’re passionate about, you can pick an organization that focuses on children, wildlife, healthcare, or any other field. “CanadaHelps” is a good place to start your search if you don’t have a particular charity organization in mind. Otherwise, some specific Canadian charities that accept bitcoin include Save the Children, Lifewater, War Child Canada, the David Suzuki Foundation, and Against Malaria Foundation.
Exchange bitcoin for the Canadian dollar
If all the above options don’t work for you for one reason or another, you can always convert your bitcoin into Canadian dollars (or any other government-issued currency for that matter) and use it to pay for purchases.
How do you cash out bitcoin in Canada?
To cash out bitcoin in Canada, you can either sell it to a cryptocurrency exchange or use a Bitcoin ATM to convert the bitcoin into Canadian dollars.
One of the biggest advantages of Bitcoin ATMs is that they are simple and straightforward to use. If you know how to use a regular ATM, you can easily find your way around a Bitcoin ATM. Besides, they are more private and secure because the machine doesn’t ask for much personal information.
Not sure where to find a Bitcoin ATM in Canada? Use this Bitcoin Well ATM finder to locate the nearest Bitcoin ATM. While most other ATMs out there are buyer-centric, some Bitcoin Well ATMs allow you to buy and sell bitcoin at will, making them extremely helpful when trying to cash out your bitcoin. Each ATM has an intuitive interface and information on how it works to help you easily turn your cash into bitcoin.
Apart from Bitcoin ATMs, you can also use online exchanges to cash out bitcoin in Canada. Some of the largest cryptocurrency exchanges that serve Canada include CoinBase, BitBuy, and Binance, although the latter was banned in Ontario after they were not able to meet the OSC’s (Ontario Securities Commission) regulatory requirements. Another noteworthy Canadian company to use to cash out your bitcoin is Bitcoin Well. They have an online bitcoin platform that enables instant bitcoin to Canadian Dollar conversions. As an additional perk, Bitcoin Well has personal service offerings where people can get personalized guidance in their bitcoin journey that covers everything from the initial wallet setup through the process of buying your bitcoin and sending it directly to your cold storage wallet. These companies don’t have limits on the amount you can convert, so you can cash out up to millions of dollars.
Final thoughts
There’s a wide range of things you can buy with bitcoin in Canada, from real estate to beverages, jewelry, and even furniture. Bitcoin Well is your best option when it comes to using your bitcoin. Whether you’re looking to sell instantly, privately, or with the help of a Bitcoin Specialist, they have a service for you. They even help you pay your bills in bitcoin. With all these options, it’s no surprise that more and more Canadians are investing in bitcoin.
However, keep in mind that there’s a tax implication every time you sell bitcoin for a good or service. The Canada Revenue Agency requires you to record and report all transactions in your tax returns. Make sure to seek professional tax advice if you are not sure about how to pay taxes on cryptocurrency in Canada.
Triple A – Cryptocurrency information about Canada
https://triple-a.io/crypto-ownership-canada-2021/Reviewlution – 11+ Cryptic Cryptocurrency Canada Statistics
https://reviewlution.ca/resources/cryptocurrency-canada-statistics/Triple A – Cryptocurrency information about Canada
https://triple-a.io/crypto-ownership-canada-2021/Reviewlution – 11+ Cryptic Cryptocurrency Canada Statistics
https://reviewlution.ca/resources/cryptocurrency-canada-statistics/UpNest – Cryptocurrency And Real Estate Transactions: What You Need To Know
https://www.upnest.com/1/post/the-rise-of-cryptocurrency-in-real-estate-transactions/
