If, in 2022, you are not aware of how cryptos are changing the world, you are a little late. Interest in this currency skyrocketed since small and large businesses hung the “Bitcoins Accepted” sign on websites and outside their premises, pushed by precedents that have moved brands, governments, and businesses to accept it among their forms of payment. Kimberly Rosales, an expert in the cryptographic world, explains how Bitcoin (BTC) is changing the eCommerce space.
BTC has closed gaps that online sales were not finding a way to bridge: cross-border trade, payments, fees and more. Undoubtedly, eCommerce companies that do not use it will fall one step behind the trends.
BTC is a digital currency that allows transactions to be made without using a bank or other intermediary. Transactions from consumer wallets are processed, verified and recorded by bitcoin enthusiasts. In addition, there are no transaction fees.
People can buy BTCs, hold them in their digital wallets, and use them to pay for goods and services by transferring their bitcoins through Coinbase or Bitpay. However, since they are not regulated, you cannot secure that “wallet.” Also, only the ID of that wallet is stored in a registry, not the actual name. Remaining anonymous is one of the features that makes bitcoin a favorite choice of payment for illegal activities.
“The impact of crypto has been gradual and, of course, its latest victory has been in eCommerce,” Rosales explains. “The latter was helped by a series of recent milestones that triggered its acceptance on a global scale: the first of these featured El Salvador and the space it gave bitcoin in its monetary integration, until then led by the dollar.”
Despite some risks, BTC are a dynamic and interesting technology that will definitely change eCommerce and how it will be conducted in the future. The founder of BTCs usage guide site 99Bitcoins stated that this currency is gradually infiltrating eCommerce because it is a viable, innovative and “sexy” solution. Companies like Tesla, Starbucks, PayPal and more understand this and are attracting more customers by allowing them to use them in their eCommerce.
It could also speed up the shipping process. Since shoppers wait days for a payment, they could now start shipping products immediately. Practices like Amazon’s fast shipping would be even faster and more efficient thanks to these instant and direct payments.
For people in developed countries, locating a bank or using services like PayPal is no problem. But in developing countries, there is not as easy access to banking institutions or services, because it can be risky. This is all changed by BTC.
Since BTC is essentially a person-to-person service, a payment can reach its destination safely. This would help do business with developed countries and allow marketers to finally participate in eCommerce.
BTC also ends the process of converting money or paying fees for foreign transactions. Since it is the same currency worldwide, doing trade with companies or people in other countries would be easier and less expensive.
As Rosales has already mentioned, BTC can erase expenses and fees between traders in different countries. For example, exchange fees are fees charged by the bank to the buyer.
There are also the charges when there is a dispute from a consumer. Since multiple channels are used for a normal bank card transaction, such as the credit card network’s payment gateways, those fees are a necessary evil. But since there are no middlemen with bitcoin, there are no such fees.
“Bitcoin, unlike traditional banks, puts its customers first,” assures Rosales. “Banks may say otherwise, but there is no official institution that allows people complete control and access to their finances.”
It is possible to send and receive payments instantly. This allows you to have access to an always up-to-date budget. In addition, you can run your business as you want, because you don’t have to follow the regulations set by banks or other financial institutions.
BTCs are very secure. For example, you can encrypt the digital keys of the digital currency wallet, you can back them up and even put the bitcoins in ‘cold storage.’ In other words, store them offline. There is also a multi-signature feature that can be used against theft. This means that an organization or company can withdraw funds only after three to five members approve the transaction.