What Can You Do With Bitcoin? Complete Use Cases Guide 2025

What can you do with Bitcoin? This question comes up constantly among crypto beginners. Far from being just a speculative asset, Bitcoin (BTC) offers numerous real-world use cases: payments, investing, international money transfers, store of value, and even participation in decentralized finance. In 2025, with growing adoption by institutions and merchants, the possibilities for using Bitcoin have never been greater.

In this comprehensive guide, we explore all the Bitcoin use cases, from the simplest to the most advanced, to help you get the most out of your BTC.

What Is Bitcoin? A Quick Refresher for Beginners

Before exploring what you can do with Bitcoin, let’s briefly recap what this revolutionary cryptocurrency is all about.

Bitcoin (BTC) is a decentralized digital currency created in 2009 by a person (or group) under the pseudonym Satoshi Nakamoto. Unlike traditional currencies like the US dollar or euro, Bitcoin operates without a central bank or intermediary. Transactions are recorded on a blockchain, a public and immutable ledger.

“Bitcoin enables direct online payments without going through a financial institution.” — Satoshi Nakamoto, Bitcoin White Paper (2008)

The fundamental characteristics of Bitcoin are:

• Decentralized: No central authority controls the network
• Limited supply: There will never be more than 21 million BTC
• Transparent: All transactions are publicly verifiable
• Secure: The network has never been hacked since 2009
• Pseudonymous: Bitcoin addresses aren’t directly linked to identities

Today, millions of people worldwide own bitcoin, and use cases extend far beyond simple investment.

Bitcoin as a Store of Value: Digital Gold

One of the primary uses of Bitcoin is serving as a store of value, similar to gold. This is why it’s often called “digital gold.”

Why Bitcoin Is Considered a Store of Value

Several characteristics make Bitcoin an excellent asset for protecting wealth over the long term:

• Absolute scarcity: With a maximum of 21 million units, Bitcoin is rarer than gold. This limit is written into the code and cannot be changed.
• Predictable issuance: The halving cuts the creation of new BTC in half every 4 years, creating programmed disinflation.
• Censorship resistance: No government can freeze your bitcoins if you hold them yourself.
• Perfect portability: Unlike physical gold, you can carry millions of dollars in BTC with just a recovery phrase.

Bitcoin vs Gold: The Comparison

Bitcoin for Inflation Protection

In countries where the local currency is rapidly losing value (Argentina, Venezuela, Turkey…), Bitcoin offers protection against inflation. Unlike fiat currencies that central banks can print without limit, the supply of Bitcoin is fixed and immutable.

In 2025, with post-COVID expansionary monetary policies and geopolitical tensions, more and more institutional investors consider Bitcoin as an inflation hedge alongside gold.

Investing in Bitcoin: Different Strategies

Investing in Bitcoin is the most common use case. Here are the main strategies for investing in BTC based on your risk profile.

HODLing: Buy and Hold for the Long Term

The HODL strategy (Hold On for Dear Life) involves buying Bitcoin and holding it for several years, regardless of market fluctuations. This approach is based on the conviction that Bitcoin will continue to appreciate over the long term.

Advantages of HODLing:

• No need to follow markets daily
• Avoids emotional trading mistakes
• Potentially more favorable tax treatment (long-term capital gains)
• Historically, Bitcoin has always surpassed its previous all-time highs

DCA (Dollar Cost Averaging)

DCA or scheduled investing involves regularly buying (every week or month) a fixed amount of Bitcoin, regardless of its price. This strategy helps smooth out your average purchase price and reduce the impact of volatility.

Practical example: Invest $100 every month in Bitcoin, automatically. Over 5 years, this strategy has historically outperformed attempts to “time” the market.

Bitcoin ETFs: Invest Without Direct Ownership

Since 2024, spot Bitcoin ETFs are available in the United States and Europe. These funds allow you to invest in Bitcoin through a traditional brokerage account, without having to manage a crypto wallet.

Advantages of Bitcoin ETFs:

• Simplicity: Buy through your regular broker
• Security: No risk of losing private keys
• Tax integration: Can be held in tax-advantaged accounts (depending on jurisdiction)

Disadvantages: Annual management fees, no true ownership of BTC (you can’t withdraw them).

Trading: Buy and Sell to Profit from Volatility

Bitcoin trading aims to profit from short-term price movements. It’s a risky activity that requires technical knowledge and strict discipline.

Warning: According to studies, over 70% of retail traders lose money. Bitcoin trading is reserved for experienced investors.

Paying with Bitcoin: Where to Spend Your BTC

Contrary to popular belief, it’s entirely possible to pay with Bitcoin at many merchants, both online and in physical stores.

Major Retailers Accepting Bitcoin

Crypto payment adoption is growing rapidly worldwide:

• Microsoft: Accepts Bitcoin for Xbox games and apps
• AT&T: First major US mobile carrier to accept crypto payments
• Whole Foods: Via Flexa/SPEDN app
• Starbucks: Through the Bakkt app in the US
• PayPal merchants: Pay with Bitcoin at millions of PayPal-enabled merchants

E-commerce Platforms Accepting Bitcoin

Numerous online retailers accept Bitcoin:

• Newegg: Computer hardware and electronics
• Overstock: Home goods and furniture
• Shopify merchants: Many Shopify stores integrate Bitcoin payments
• Expedia and Travala: Travel bookings
• Namecheap: Domain names and hosting

Crypto Cards: Convert Your BTC to Dollars Instantly

Crypto debit cards allow you to spend your bitcoins anywhere Visa/Mastercard is accepted. BTC is converted to dollars at the time of payment.

Main cards available:

• Coinbase Card
• Crypto.com Card
• BitPay Card
• Binance Card

Sending Money with Bitcoin: International Transfers

One of Bitcoin’s original use cases is international money transfer. Compared to traditional bank transfers, Bitcoin offers considerable advantages.

Advantages of Bitcoin Transfers

• Speed: A Bitcoin transaction is confirmed in 10-60 minutes (vs 1-5 days for an international wire)
• Lower cost: Fees are typically a few dollars, regardless of the amount sent
• 24/7 availability: The network operates without interruption, including weekends and holidays
• Borderless: Send money to any country without restrictions
• No intermediaries: No correspondent banks or exchange fees

Bitcoin Lightning Network: Instant Transactions

The Lightning Network is a payment layer built on Bitcoin that enables near-instant transactions (seconds) with minimal fees (fractions of a cent).

This technology makes Bitcoin perfectly suited for micropayments and everyday transfers, solving the scalability limitations of the main network.

Did you know? Sending $200 with Bitcoin costs approximately 30 times less than with a traditional international bank wire.

Use Case: Remittances

Remittances (money sent by expatriate workers to their home countries) represent a market of over $700 billion annually. Bitcoin and Lightning Network offer a less expensive alternative to traditional services like Western Union or MoneyGram.

In El Salvador, which adopted Bitcoin as legal tender in 2021, money transfers via Bitcoin have significantly increased, allowing families to save on transfer fees.

Holding Your Own Bitcoins: Self-Custody

One of Bitcoin’s fundamental principles is the ability to keep your own funds, without depending on a bank or exchange platform. This is called self-custody.

Why Self-Custody Matters

The crypto saying “Not your keys, not your coins” summarizes the importance of personal custody:

• Total control: You’re the only one who can access your funds
• No bankruptcy risk: If a platform goes bankrupt (like FTX in 2022), you don’t lose your BTC
• Censorship resistance: No authority can block your account
• No limits: No withdrawal caps or hidden fees

How to Store Your Bitcoins in Self-Custody

Hardware wallets are the most secure solution for self-custody:

• Ledger: French market leader
• Trezor: Popular open-source alternative
• Coldcard: Ultra-secure, Bitcoin-only

These devices store your private keys offline, protecting them from hackers.

Important: Keep your recovery phrase (seed phrase) in a safe place, offline. It’s the only way to recover your bitcoins if you lose the device.

Bitcoin and DeFi: Generating Yields

Thanks to solutions like Wrapped Bitcoin (WBTC), it’s possible to use your bitcoins in the decentralized finance (DeFi) ecosystem.

What Is Wrapped Bitcoin (WBTC)?

WBTC is an ERC-20 token on Ethereum whose value is backed 1:1 by Bitcoin. A custodian holds the “real” BTC and issues the equivalent in WBTC.

This solution allows you to use the value of your bitcoins in DeFi applications on Ethereum, Arbitrum, or other blockchains.

What You Can Do with WBTC in DeFi

• Lending: Deposit your WBTC on platforms like Aave or Compound and earn interest
• Borrowing: Use your WBTC as collateral to borrow stablecoins
• Yield farming: Provide liquidity on DEXs like Uniswap or Curve to generate income
• Liquid staking: Participate in staking protocols while maintaining liquidity

Warning about risks: DeFi carries specific risks (smart contract bugs, liquidation, impermanent loss). Only invest amounts you can afford to lose.

Native DeFi Solutions on Bitcoin

With the evolution of the Bitcoin ecosystem, native DeFi solutions are emerging:

• Stacks (STX): Smart contracts on Bitcoin
• RSK: Bitcoin sidechain compatible with Ethereum
• Liquid Network: Sidechain for confidential transactions and token issuance

Mining Bitcoin: Participating in the Network

Bitcoin mining is the process that secures the network and creates new BTC. Miners use powerful computers to solve complex cryptographic problems.

How Bitcoin Mining Works

Mining relies on the Proof of Work mechanism:

1. Miners collect pending transactions
2. They attempt to find a valid hash (intensive computation)
3. The first to find the solution adds the block to the blockchain
4. They receive the block reward (currently 3.125 BTC after the 2024 halving) + transaction fees

Is Mining Profitable for Individuals?

In 2025, Bitcoin mining has become a highly competitive activity requiring:

• Specialized hardware: ASICs (Application-Specific Integrated Circuits) cost thousands of dollars
• Cheap electricity: Mining consumes a lot of energy
• Cooling: Machines generate significant heat

Alternatives for individuals:

• Pool mining: Join a group of miners to share resources and rewards
• Cloud mining: Rent computing power (beware of scams)
• Just buy BTC: Often more profitable than mining

NFTs and Ordinals: Creating on Bitcoin

Since 2023, the Ordinals protocol has enabled the creation of NFTs directly on the Bitcoin blockchain, opening new creative possibilities.

What Are Ordinals?

Ordinals allow you to inscribe data (images, texts, files) on the smallest units of Bitcoin, called satoshis. Each inscribed satoshi becomes unique and collectible.

What Ordinals Enable

• Bitcoin-native NFTs: Create and collect digital artworks on Bitcoin
• BRC-20 tokens: Create fungible tokens on Bitcoin
• Inscriptions: Store data permanently and immutably

The Ordinals market experienced explosive growth in 2023-2024, with collections reaching millions of dollars in trading volume.

BitVM: Smart Contracts on Bitcoin

With BitVM (Bitcoin Virtual Machine), Bitcoin is progressively becoming capable of executing complex applications, similar to Ethereum. This evolution could transform Bitcoin into a platform for various decentralized applications.

Risks to Know Before Using Bitcoin

Like any investment or technology, Bitcoin carries risks that are essential to understand before getting started.

Price Volatility

The Bitcoin price can fluctuate 10 to 20% in a few days. This volatility is both an opportunity for traders and a risk for investors. Never invest more than you can afford to lose.

Risk of Losing Private Keys

In self-custody, you are responsible for the security of your funds. Losing your recovery phrase means permanently losing your bitcoins. Estimates suggest that 3 to 4 million BTC are lost forever.

Regulatory Risk

Cryptocurrency regulation is constantly evolving. In the United States, Bitcoin gains are subject to capital gains tax (rates vary by holding period and income). Rules can change and impact the holding or use of BTC.

Scams and Hacks

The crypto ecosystem attracts scammers. Watch out for:

• Fake airdrops and phishing sites
• Ponzi schemes promising guaranteed returns
• Fake customer support on social media
• Malicious apps imitating official wallets

How to Buy Bitcoin

To buy Bitcoin, several options are available, with different levels of simplicity and security.

Regulated Exchange Platforms

Licensed and regulated exchanges offer a secure framework:

• Coinbase: US-based, user-friendly interface, beginner-friendly
• Kraken: Strong security, wide range of features
• Gemini: New York-regulated, SOC 2 certified
• Binance.US: Large selection, competitive fees

Steps to Buy Bitcoin

1. Create an account on a regulated exchange
2. Verify your identity (KYC required)
3. Deposit funds via bank transfer or debit card
4. Buy Bitcoin at market price or via a limit order
5. Secure your BTC: Transfer them to a personal wallet if you want self-custody

FAQ: Frequently Asked Questions About Using Bitcoin