After speaking to a number of bitcoin experts, we also did research about future of cryptocurrencies, TechAdbox started accepting Bitcoin as a valid form of payment as Bitcoin increases in value and popularity, increases in value and popularity. Many startups use bitcoins as their regular and valid form of payment for everyday transactions.
Adding Bitcoin as payment for services opens the startup business to whole new group of customer base. Furthermore, the cryptocurrency has much smaller fees than traditional credit card networks, and is a decentralized currency for the people rather than funds issued by governments or corporations.
Bitcoin is quite complex, it is not needed in order to send an email; understanding the underlying mathematics and cryptography is unnecessary although quite fascinating: Bitcoin and other related cryptocurrencies just work. We summarize the top eight reasons that we heard consistently from our experts:
1. Minimum Risk: Since Bitcoin is not tied to any country or economy, Bitcoin appears to be less risky than any other currency, this cryptocurrency is theoretically more stable and suffers from less political risk. Since the Bitcoin protocol calls for a finite number of circulating coins, there will be more deflationary effects with this digital currency.
2. Lower Transaction Costs: Comparing with other clearinghouses like credit card companies, PayPal, WesternUnion, Bitcoin lowered transaction costs, averaging in at 1%, as compared with the aforementioned at 2-4%. With Bitcoin we can take temporary deposits and refund the amount without incurring charges. The implications of the low cost transaction are wide ranging from micro-payments to peer-to-peer to international to the “unbanked’s” transactions.
3. Security: Bitcoin is just like cash, processing and transacting can be really safe for everyone, whether it’s company or the customers. Since Bitcoins act like cash, there are no chargebacks, thus caveat emptor and they can be lost, although losing them requires a bit more work. Furthermore, there’s no central government or third parties involved,they can’t freeze the bitcoin based assets. Although, bitcoin wallet addresses are public but anonymous, thus the public ledger of Bitcoin creates a money trail & prevents double spending.
3. Micro-Transactions: Payment companies like PayPal have a $.30 flat fee plus a percentage of the transaction as their fee. With a strictly variable pricing model, Bitcoin opened the door for the micro-transaction ecosystem to finally be economically viable.
4. Peer to Peer Transactions: With Bitcoin, peer-to-peer transactions become even simpler. The barrier to entry to creating own company/ small business has come down and more small businesses are opening up benefiting companies.
5. International Transactions: Sending money via Western Union or wire is an expensive affair, usually whittles away any profits. International transactions have been extremely challenging as the transaction fees on both ends [sender & receiver] with foreign exchange risk in the middle. Bitcoin helps here in these kind of transactions as TechAdbox has a wide range of ad publishing partners and we have to make international payments every month.
6. “Unbanked” Transactions: Without a need for infrastructure, Bitcoin can be an alternative for the unbanked community either domestic or abroad. Fees for check cashing can be upwards of 2%, double the rate of a standard Bitcoin transaction.
7. Fastest Mode of Transactions: Without a need for infrastructure, Bitcoin can be an alternative for the unbanked community either domestic or abroad. Fees for check cashing can be upwards of 2%, double the rate of a standard Bitcoin transaction.
8. Global Acceptance: Internet companies like Overstock, OKCupid, Reddit, and Zynga accept Bitcoin as a form of payment, and more interesting are the offline brick and mortar stores accepting Bitcoin likeMeze Grill and Hudson Eatery in Manhattan. Social Media maven Harry Hawkmentions howBurger Bear, a food truck in London, one of the first of 26 businesses in the UK to accept Bitcoin, handled 1/3 of all their transactions on their first day of acceptance via Bitcoin.
When everyone accepting bitcoin, why we should be left behind, It’s simple, easy and secure to have bitcoin payments. So, finally we decided to make it sole form of payment for ad publishers.