You asked why anyone would buy something with Bitcoin. Imagine you buy something on Amazon, you can buy bitcoins (with a 1% fee) at coinbase, and use Gyft which gives you 3% back. You end up getting (1+3%)/(1+1%) ~ 2% back.
You can also always replenish your bitcoin holdings at the end of the day, if you want to maintain a certain amount of bitcoin exposure.
Comments
You asked why anyone would buy something with Bitcoin. Imagine you buy something on Amazon, you can buy bitcoins (with a 1% fee) at coinbase, and use Gyft which gives you 3% back. You end up getting (1+3%)/(1+1%) ~ 2% back.
You can also always replenish your bitcoin holdings at the end of the day, if you want to maintain a certain amount of bitcoin exposure.