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Buy it with bitcoin in New York, but it’s not cheap

NEW YORK: At Melt Bakery, a hole in the wall that sells ice cream sandwiches in New York’s upscale Manhattan neighbourhood, you can pay for your guilty pleasure in bitcoin.

And while a few swipes of a mobile app are all it takes to fill your electronic wallet, the novelty, for now, comes at a hefty cost.

Melt is one of several small stores in America’s biggest city now accepting the bitcoins, hailed by some as the future of currency.

Investors’ interest has been piqued by the virtual currency’s surging value while industry insiders see it as an alternative instrument for consumers who want to shop online but don’t have access to traditional instruments like a credit card.

It has even triggered an expanding ATM network that lets people turn their cash into bitcoins, and their bitcoins back into cash.

At Melt’s checkout counter, each transaction can take several minutes to process and trigger varying fees.

That means a $5 chocolate ice cream sandwich cost $9.29 for a recent bitcoin purchase.

Gift cards
Though its presence is growing, bitcoin use is still far from widespread at the storefront level.

A New York chiropractor who released a statement in 2014 announcing he would accept bitcoin payments has yet to receive any.

Nick Allen, head of product development at the Blockchain Technologies startup, acknowledges such use is limited.

“It’s just for promotion,” said the 24-year-old.

“Bitcoin will never be used largely in real life. Transaction fees are too high and an owner is not able to track the transactions made by its employees.”

For his part, Allen converts his entire income into the currency which he then uses to do all his shopping online, including basic groceries.

He buys store gift cards on an online platform where, he says, vendors “want bitcoins more than they want gift cards.”

In just a few clicks, he can buy $100 worth of takeout food delivered by UberEats for just $36.

But he found himself in a bit of a bind during a recent trip to Amsterdam, where, without a credit card and just 200 euros ($238) in cash, he couldn’t find anywhere to convert his bitcoins.

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