Should All Commerce Sites Accept Bitcoin?

Author: GTong

Despite the massive investments from financial giants and the ever-increasing hype surrounding blockchain, for many people, the world of Bitcoin is still notorious and exists on the dark side of the Internet, like drug dealing and terrorism, or simply considered to be something of science fiction fantasy. But recently, the financial industry has shown a wide range of interest in blockchain technology, which is the basis for the circulation of Bitcoin and can reduce transaction costs.

Led by the long-established Schroders and Aberdeen Asset Management, this could indicate that the rise of blockchain technology will change the reputation of Bitcoin and bring it into mainstream business. After all, in 2015, some of the world's largest financial companies such as American Express and Visa invested in Bitcoin startups. Bitcoin looks likely to become more common in daily transactions on e-commerce sites in 2016.

What are the benefits of Bitcoin for e-commerce businesses?

"2016 is the year of the unveiling of Bitcoin," said Tim Draper, a venture capitalist who has invested in Bitcoin startups. "I expect the U.S. government to finally recognize Bitcoin as a currency."

If the U.S. government recognizes Bitcoin as a currency, e-commerce business owners would be foolish not to accept Bitcoin payments. With more and more companies accepting Bitcoin and Bitcoin-related startups growing in value, 2016 will give e-commerce businesses more opportunities to enter the world of Bitcoin, but is this new currency really beneficial to e-commerce businesses?

One benefit for e-commerce business owners is the ability to attract an emerging market filled with consumers eager to spend their Bitcoin in new places. Accepting Bitcoin can take advantage of a relatively new niche and help your e-commerce site stand out from your competitors. Another benefit for commerce sites is the low fees. There is no additional cost to process Bitcoin payments compared to credit card transactions, and Bitcoin can be transferred around the world in less than 10 minutes.

First-time Bitcoin users should be aware of Bitcoin's reputation as black market money among everyday consumers. To assure your users that you care about the security of their information, installing an SSL certificate on your website is a must. SSL certificates are simple to install, and companies like 1 & 1 offer SSL encryption to protect customer data.

However, it is unlikely that this new Internet currency will completely replace national currencies anytime soon, at least for everyday transactions. Therefore, while e-commerce sites may consider accepting Bitcoin as an additional payment option for consumers, Bitcoin should not be the only option that e-commerce sites use for simple purchases.

JPM compiled from
Crypto Coins News, Should All Ecommerce Sites Accept Bitcoins?, by Tom Clancy.