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Are You a Bitcoin Believer?

<p>This is how one family uses bitcoin almost exclusively for its financial transactions.</p>
Image: Leo plays on a bench next to a Bitcoin machine at the Old Shoreditch Station Cafe and Bar in east London
Leo, 4, plays on a bench next to a Bitcoin machine at the Old Shoreditch Station Cafe and Bar in east London March 7, 2014. Britain's first machine for dispensing digital currency opened for business in a cafe near London's "Silicon roundabout" tech hub in east London on Friday, offering customers the ability to exchange bank notes for bitcoins. REUTERS/Andrew Winning (BRITAIN - Tags: SOCIETY BUSINESS)ANDREW WINNING / Reuters

The Pylands are bitcoin believers. The Utah family of six has been living off of the much discussed digital currency for the last two years. How do they live off of bitcoins?

Utilities

To pay for rent, electricity and gas the Pylands convert bitcoin into dollars by logging on to Coinbase.com which acts as currency exchange and charges only 1 percent, which is less than most bank fees or credit card processing payments.

Everyday Shopping

If they want to go shopping to a store, they just buy a gift card with bitcoins on a website called www.gyft.com which give them access to store like Target, Sears, and the Gap. The website also offers them gift cards to popular chains like Burger King and Starbucks.

Eating Out

The Pylands make it a point to eat at restaurants which accept bitcoins near their home. This map shows you where you can find businesses accepting bitcoin.

Income Generator

They get paid in bitcoin. The way the bitcoins network has been built is that those who keep track of every bitcoin transaction through complicated math applications get paid in bitcoins to keep the system going.

They Invest It

The Pylands also trade bitcoins on exchanges just like one would trade gold on the New York Mercantile Exchange to make a profit.