Even though the number of Bitcoin merchants keeps increasing year by year, the major concern is the low number of actual Bitcoin customers they will attract. Bitcoin is meant to be used as a payment method for goods and services all over the world; yet the Bitcoin community hasn’t seemed to grow at a rapid pace in the past few months. Is this a sign of things to come, or is it a small bump in the road?
Bitcoin Offers Plenty Of Value For The Merchant
From a merchant perspective, there is no genuine reason not to accept Bitcoin payments, regardless of community growth around the world. Bitcoin payments are far cheaper and equally as fast in terms of funds changing hands compared to traditional payments. But the best part is there is no need to spend money on additional infrastructure, as all the merchants need is a computer, smartphone or tablet.
All in all, the savings potential for merchants is incredibly lucrative, as transaction fees can be cut by 95% or more in most cases. Even if there would be one regular Bitcoin customer every month, the costs saving associated with that purchase are worth the gamble of accepting virtual currency payments, both in-store and online.
Additionally, Bitcoin transactions remove any chance of chargebacks and fraud – an issue that has been plaguing e-commerce for many years now. Credit and debit cards were never intended to be used as an online payment method, yet with online shopping on the rise quarter over quarter, more and more everyday consumers use these forms of payment.
While card payments are convenient for the consumer – and seemingly so for the merchant as well – they remain subject to high fees and the chargeback risk. Bitcoin eliminates all of those costs and risks, as virtual currency can not be charged back or refunded and the transaction fees are neglectable. Plus, with Bitcoin’s transparent nature of tracking down payments to its origin and recipient, there is no way to hide anything from the public.
GoCoin, one of the leading virtual currency payment processors in the world today, has taken things one step further. By partnering with Tether, GoCoin customers can use multiple virtual currencies – including Litecoin and Dogecoin – for online payments in USD. Not only does this give the virtual currency community an additional boost, but it also creates an opportunity for merchants to attract a broader customer base.
Blockchain Analytics Is “Not A Big Deal.”
A new trend that is worrying merchants comes in the form of claiming to have the tools to analyze the blockchain in detail. Considering how the blockchain records every Bitcoin transaction in history, it is technically possible to trace the origin of any Bitcoin and see whether or not it comes from legitimate or illegitimate sources.
“I don’t really see a lot of value in tracking where the bitcoins come from, I mean…if their concern is whether it’s stolen or whether it’s money laundering they’re looking at, well certainly that needs a concern. If we do need to track it, in that it becomes a requirement of either the banks or an issue of regulatory compliance, we will certainly do it.” – GoCoin CEO Steve Beauregard told the media.
In a practical form, tracing the origins of Bitcoin transactions is in stark contrast to the original vision of Satoshi Nakamoto. The spirit of Bitcoin does not involve using blockchain technology to analyse and determine the origins of any transaction through special means, as the blockchain is publicly accessible.
Source: Money’s Edge
Images courtesy of GoCoin, Shutterstock