Tuesday, May 13, 2014

Bitcoin: A Digital Currency for Ecommerce

Bitcoin has been on ecommerce radar since it was first introduced in 2009. In January, Overstock.com became one of the largest retailers to accept this digital currency, bringing in over $1 million in Bitcoin revenue during the first couple months. Before you decide to accept Bitcoin as an approved payment method, take a look at the following advantages and disadvantages of doing so.

What is Bitcoin?
Bitcoin is a digital currency in which transactions can be performed by individuals without the need of a central bank. These bitcoins can be bought and sold over the internet with the use of computers, tablets and other mobile devices and are stored in virtual wallets. Bitcoins are as simple to use as sending an email and are protected by cryptography (mathematical proofs that make it nearly impossible for someone to spend funds from another user's wallet). To learn more about bitcoins including a detailed explanation, watch the video below.

For online merchants, Bitcoin can be beneficial; however, it may not be best for every company. Take a look at some of the advantages and disadvantages to using Bitcoin in Ecommerce, as laid out by Coin Report, Global Digital Currency News:

  • Freedom in payment
  • Control and security
  • Transparent information
  • Low (or no) fees
  • Fewer risks for merchants

  • Lack of awareness and understanding 
  • Risk and volatility
  • Still developing

Click for more on the Advantages and Disadvantages of Using Bitcoin

So what does the future of Bitcoin look like for ecommerce? Only time will tell how this trend will evolve as retailers and tech-savvy consumers weigh the pros and cons - but it's certainly something to keep in mind. 

by Samantha Warner
Marketing Extraordinaire