Bitcoins rose to limelight in 2017 due to its skyrocketing price value. In 2017, the price ran up to more than ten thousands in US dollars.
Bitcoins are Crytocurrency, Digital Currency. It was originated in 2009 and were used back then. In 2010, a developer bought 2 pizzas with 10, 000 bitcoins. Today, you can buy more than $10 million worth stuff with the same amount of bitcoins. How has shopping changed with the rise of bitcoins?
People are now moving on to trade with Bitcoins. OverStock.com were the first retailers to introduce their customers to pay with Bitcoins. Next came, Expedia to book hotels online, to eGifter. It is now believed that Amazon is set to announce their introduction of Bitcoin payment soon.
Why Bitcoins specifically? Bitcoins make online shopping or other eCommerce activities easy. Both to Consumer and the Merchant.
Consumer’s benefits with Bitcoins
1. Basically, the money transfers will be quick, safe and what’s more, cheap! There is no third party interference( no banks/financial institutions), hence no taxes.
2. Bitcoins do not charge any foreign exchange fees. So there is no any additional charges when trading with different currencies.
3. Bitcoin wallets can be backed up as they are digital.
And the Merchants……
1. Avoids Charge-backs – Bitcoin transactions can never be reversed.
2. Merchants can avoid the credit card processing fees (which is usually 2-3% from their side)
BitCoin & Online shopping – The process
1. purchase bitcoins from online exchanges or brokerages by transferring money from a regular bank account or through credit card transfers.
2. Assign the bought coins in the bitcoin wallet app like BitPay Wallet, Copay
3. At checkout, choose pay with Bitcoin option. The order with its bitcoin price and a QR code will be displayed. This code must be scanned through your wallet app.
The transactions are confirmed within an hour. People do not need to wait days and weeks to confirm their transactions which is a great relief!
Bitcoins are a method of Peer to Peer(P2P) Money transfer networks. P2P networks offer wide transparency. Currency rates are published for everyone to see and the rates are determined only through supply and demand. A real-time ledger that is publicly shown reduces the risk of theft to zero.
Another factor people love Bitcoin during online shopping is that they remain anonymous. the transactions are done using Bitcoin addresses which can be seen by everyone but it is not shown whose address it is.
Bitcoins are not going to be limited for online shopping. It has now expanded to other industries like,
1. Education Industry – Some colleges have now started to accept course payments in the form of bitcoins
2. Charitable Organisations – With Human Rights Organisation, the American Red Cross, Electronic Frontier Organisation and the united way accepting bitcoins, they were able to conduct more humanitarian work in countries whose currency value is worthless.
3. Music Industry – Ujo Music and Stem companies now allow fans of artists to pay via bitcoins directly.
4. Online Gambling Industry – Predicted to be the field that will have Bitcoins’ effect mostly.
BitCoins are game changers, within the upcoming years, they might have a great impact in almost all industries. But Bitcoins do have cons, specially it’s excessive volatility. Bitcoins will change the industries but it can be towards a brighter future or can be to a risky future.