Despite major investments by financial giants, and the latest hype around blockchains, for many the world of bitcoins are still notorious with the darker sides of the internet. Namely drug dealing and terrorism, or are simply thought to be the stuff of sci-fi fantasies. Recently, the financial industry has collectively increased their interest for blockchain technology, the ledger that makes up the foundation of bitcoins, and reduces trading costs.
With big time players like Schroders and Aberdeen Asset Management taking the lead, this could suggest that the rise of blockchain technology will transform Bitcoin’s reputation, bringing bitcoins into mainstream businesses. After all, 2015 saw some of the biggest financial companies in the world like American Express and Visa, invest in Bitcoin startups. Looks like bitcoins may become more prevalent on ecommerce sites used for everyday transactions in 2016.
What are the Benefits for Ecommerce Businesses?
Venture capitalist Tim Draper, who has invested in Bitcoin startups states, “2016 should be a revealing year for Bitcoin. I expect the U.S government to finally recognize Bitcoin as a currency.”
If the U.S government recognizes Bitcoin as a currency, then ecommerce business owners would be foolish not to accept bitcoin payments. With more companies taking on bitcoins, and Bitcoin-related startups dramatically increasing in value, 2016 could see an opportunity for more ecommerce businesses to enter the world of bitcoin, but will this new currency really benefit ecommerce businesses?
One benefit for ecommerce business owners is the ability to attract an emerging market of consumers eager to spend their bitcoins in new places. Accepting bitcoins would essentially tap into a relatively new niche market, and help your ecommerce site stand out above competitors. Another benefit for ecommerce sites is low fees. In comparison to credit card transactions, processing bitcoin payments won’t cost extra, and bitcoin can be transferred across the world in less than 10 minutes.
First time bitcoin users should be aware of the reputation it still has amongst most everyday consumers, as the money of the black market. To assure your users that you care about the security of their information, it’s a absolute necessity to install a SSL certificate onto your website. Installing SSL certificates is simple, with companies like 11 offering SSL encryption to safeguard customers’ data.
However, this new currency of the internet is unlikely to completely take over from national currencies any time soon, at least in terms of where every day transactions are concerned. So, while ecommerce sites may consider accepting bitcoins as an additional payment option for consumers, bitcoins should not be the only method of payment on ecommerce sites used for simple purchases.