Connect with us

Blockchain

How Accepting Bitcoin Can Help Your Business Grow

Bitcoin was originally designed as electronic cash—and for businesses, there are clear benefits to accepting payments in the cryptocurrency.

Avatar

Published

on

In brief

  • Bitcoin was conceived of as an “electronic cash” system.
  • A growing number of merchants are accepting payments in Bitcoin and other cryptocurrencies.
  • The most popular method is a hybrid model where crypto remittances are settled with the help of a corresponding processor.

Although it’s often referred to as “digital gold”, Bitcoin was originally conceived of as a “peer-to-peer electronic cash system”. As recently as February 2020, more people claimed that its main use is for online payments rather than for investment, according to a survey by the Economist Intelligence Unit.

With PayPal now enabling its users to buy Bitcoin and pay merchants using crypto, it seems that mainstream use of cryptocurrency for online transactions is only set to grow. So what’s in it for businesses?

Direct Bitcoin payments

When one hears the phrase “crypto payments,” perhaps the most logical image that springs to mind is “a customer directly gives a merchant Bitcoin and receives goods or services in return.”

However, although it’s popular among some crypto-focused businesses, like Bitcoin-themed sock company MtSocks, it’s actually the least popular method of implementing crypto remittances among merchants today.

Speaking to Decrypt, Quantum Economics’ analyst Jason Deane explained that the traditional finance industry is not yet ready to let go of fiat currencies and fully embrace crypto on its own. While there is definitely a positive PR for a company that announces its support for BTC, right now Bitcoin is suited only for the most forward-looking firms.

“The reality is that Bitcoin is still hard to accept in its native form at point-of-sale, and systems still have a long way to go to make this slick and seamless. It also creates a number of issues with accounting, both at point-of-sale and in terms of bookkeeping,” Deane noted.

He added that most people are getting around this by ascribing a fiat value at the time of a transaction, but it’s not ideal and it can create additional tax liabilities if Bitcoin is stored and converted back to fiat at a later stage. These issues, combined with wild price swings Bitcoin is known for, complicate the matter even further.

“So, right now, Bitcoin is suited for the most forward-looking ‘cool’ companies, more likely to be an independent than a chain (retail) or publicly owned (corporate), with media presence and a PR angle,” Deane summarized.

However, he added, widespread, native adoption is inevitable. “It could well be that these earlier adopters, while having to suffer the pain of volatility and clunky payment systems, will be seen as market leaders and pioneers ultimately.”

Bitcoin-fiat hybrid payments

Another form of crypto payments emerged over the past couple of years—crypto remittances that are settled with the help of a corresponding processor. This method allows merchants to accept digital assets from their customers, but ultimately receive fiat for their goods and services.

Using this method, a customer indeed pays with crypto, but those coins don’t go directly to a merchant. Instead, a payments processor receives them, turns them into fiat and then sends those funds to their client. This way, while the payments may still be considered “crypto,” a business can receive its money without worrying about underlying processes. Notably, PayPal is offering this exact scheme to its merchants—to the ire of some crypto diehards. At the same time, implementing crypto payments today is as easy as embedding an API on a website.

According to Max Krupyshev, CEO of crypto processing service Coinspaid, this hybrid model is preferred by the overwhelming majority of mainstream merchants that want to integrate crypto payments on their platforms. While this is not a magical elixir that can boost a company’s profits overnight, accepting Bitcoin can be really beneficial for businesses—some much more than others.

The benefits of accepting Bitcoin

While traditional payment networks such as Visa or Mastercard are widely distributed across the globe, these systems are heavily controlled and regulated. This means that merchants can encounter unforeseen road bumps and limitations when setting up their payment channels. Not so with Bitcoin, which offers much more freedom and hassle-free operations compared to traditional finance.

Apart from that, transaction fees are often lower with crypto. Traditional payment processors usually take a cut of 2% from every sale on average (naturally, this figure may vary). In the case of crypto payments, this fee is reduced by at least half—to an average of 1%, Krupyshev noted.

Still, the main advantage of digital assets from a merchant’s viewpoint is that “crypto gets things done,” he explained. That means that a large established company—such as Amazon, for example—is unlikely to support cryptocurrencies any time soon, because things are working fine as it is. On the other hand, if a business is having some kind of issues with its current payment systems, Bitcoin may very well help solve at least some of them.

In particular, so-called “high-risk” enterprises—businesses that are not illegal per se but colloquially deemed somewhat ethically gray—can benefit greatly from using crypto payments, Krupyshev explained. Services that provide adult videos, live streams or even gambling and dating sites may often fall victim to mass chargebacks—even if customers actually receive what they paid for. Notably, in September 2020, adult site PornHub added Bitcoin payment options to its site, fulfilling a prediction made by Bitcoin creator Satoshi Nakamoto back in 2010.

Businesses that have more than 2% chargebacks may also be penalized by their traditional payment processors—not so much with crypto. Since blockchain transactions are immutable, companies can be sure that shady actors won’t try to exploit the system. While this may not sound beneficial for customers, reputable firms usually offer some kind of a refund system that implies mutual agreements—but not one-sided and sometimes fraudulent chargebacks.

Thinking globally

Another big advantage of implementing crypto payments is that digital assets are essentially borderless. Traditional finance solutions may differ drastically on a region-by-region basis, requiring merchants to set up their payments infrastructure in each locale individually. In contrast, Bitcoin can be paid with and accepted in any part of the world with equal ease.

“As a business, this lets you think not geographically, but in terms of user groups. For example, if you’re an online business and you sell some services over the Internet, it doesn’t matter whether your customers are from India, Latin America or Russia,” Krupyshev told Decrypt, adding that “By accepting crypto, you can direct your marketing not at any given region where you have already established payment methods, but at specific customers—no matter where they’re from.”

He also echoed Deane’s sentiment, noting that crypto payments are still “hyped” enough, especially among younger generations, to warrant some extra attention thanks to this fact alone. Thus, all a business needs to set up shop is a specialized API and a website translated into the required language.

Are these “true” crypto payments?

However, since most of the merchants that accept crypto do so through fiat in the end (partly because they don’t know how to, or don’t want to bookkeep digital assets), doesn’t this defeat one of the main purposes of Bitcoin—the removal of intermediaries? To a degree, Deane explained.

“It’s interesting because back in the day, I would have argued that this wasn’t ‘proper’ Bitcoin adoption, but my stance has softened a bit since then,” he said. “After all, the value of that transaction has come from the Bitcoin behind it; the fiat conversion is merely a vehicle to make that transaction easier.”

This way, a customer still wants to spend his Bitcoin and does so because his wallet balance goes down, the vendor wants to be paid in fiat—and they are paid in fiat, a payment processor then takes a cut of the transaction as normal and is the only party who collects Bitcoin.

“It all still works. No reason, in truth, it has to be a hard and fast native transaction. Best bit? This can happen now and already is,” Deane concluded.

Blockchain

Bitcoin Price to Hit $36,000 in 2021: Kraken Crypto Sentiment Survey

Avatar

Published

on

From what happened in the last couple of weeks, it appears that the crypto bull market is upon us. Bitcoin has been consistent with its volatility-induced rallies, and this is infusing confidence in investors.

So much, so that VIP clients in Kraken’s latest Crypto Sentiment Survey say that BTC will skyrocket to about $36,000 in 2021. They also feel that ETH could revisit its previous highs of $1500.

Bitcoin And ETH To Trade At Average Prices Of $15K and $549 By 2020 End

The latest Kraken Crypto Sentiment Survey covers investor sentiment for the second half of 2020. The exchange had already conducted a similar survey back in March this year. But then investors were way more optimistic about BTC and ETH price growth by December.

Now, the same respondents have retracted their bullish calls for bitcoin and ether (ETH) this year. According to the latest numbers,

The average bitcoin price target among 309 responses fell -35% surveyover-survey to $14,866, well below February’s average of $22,866. The median price target also retraced -28% from $19,424 to $14,000, and the most commonly cited price target was $15,000, down -25% from $20,000.

With respect to ether (ETH), the average price target among 289 responses was $549, off -32% from the previous survey’s average of $810. The median price target was unchanged at $500 and the most frequently cited price target was $500, up +66% from $300.

At 72 percent, traders and investors (down from 81 percent when the survey was conducted in March) comprised a majority of the survey responses. 18 percent of responses came from Institutions (broker, custodian, family office, hedge fund, lender, market maker, private equity firm, proprietary trading firm, or venture capitalist).

And the rest 4 percent – from crypto service providers (ATM, exchange, lender, payment processor) and miners. As compared to March, the researchers at Kraken anticipated a lower price growth optimism from the said respondents since the year is so close to its end.

The Outlook For 2021 Remains Super Bullish

When asked about how they see bitcoin and ether prices in the next year, respondents didn’t shy away from expressing their mega bullish calls. Survey participants called for an average bitcoin price target of $36,602 in 2021. Some put the median bitcoin price target at $25,000, but a lot of folks (approximately 61 percent) felt if not anything else, BTC will at least hit $20,000.

A small section of respondents reported hopium-induced ultra bullish calls.

Approximately, 8% of respondents provided a price target greater-than-or-equal-to $100,000, roughly 20% of respondents reported a price target greater-than-or-equal-to $50,000…

Survey participants were very optimistic about ETH’s outlook as well in the next year. This sentiment came from the discussions around Ethereum’s network upgrade and the growing popularity of the DeFi ecosystem. Respondents think ETH will trade at an average price of $1454 in 2021. Also, at the same time:

Close to 59% believe that ether will, at least, hit $800. Additionally, 22% of respondents see ether surpassing its previous all-time high of $1,595 set in early-January 2018 and just under 92% see ether, at the very least, trading higher than current price in 2021.

What becomes evident from the aforementioned numbers is that participants in a price prediction survey tend to project bullish figures for a longer-term.

Will Bitcoin(BTC) and ether (ETH) hit the above price targets in 2021? That still remains to be seen.

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Source: https://cryptopotato.com/bitcoin-price-to-hit-36000-in-2021-kraken-crypto-sentiment-survey/

Continue Reading

Blockchain

Bluzelle Launches Second Swarm of Duty Validator Program as Mainnet Looms

Avatar

Published

on

Distributed database service Bluzelle has released details of its second validator program, Swarm of Duty II. The sequel to the maiden testnet, which ran in July, will provide developers, token-holders, and validators the chance to put Bluzelle through its paces and see what the network is capable of.

“Kicking the tires” of blockchain networks has become something of an event in crypto circles, as the incentives for participating in testnet events are ramped up. Whereas in the past, early supporters would interact with a project’s testnet because they were tech-minded and passionate about seeing it succeed, today’s crypto communities can participate out of enthusiasm or for more mercenary reasons.

From Bluzelle’s perspective, its team wants to spur as much engagement as possible, to stress test the network before the mainnet launch occurs. As CryptoPotato reported earlier, the project has also managed to enter Polkadot’s ecosystem.

Calling All Validators

More than 200 validators participated in Bluzelle’s first Swarm of Duty event over the summer. Bluzelle has structured its testnet events like military exercises, pitting different army factions against one another. Each of the groups participating in the event has different duties to perform, which sometimes conflict with those of other units. This is deliberate to determine how the network performs under adversarial conditions.

At the top of the pecking order are Special Forces (Tier 3), reserved for hardcore Bluzelle DevOps and developers who know the protocol inside out and are heavily invested in its success. Then comes the Armory (Tier 2), made up of validators who are experienced at running blockchain nodes and in earning fees for maintaining the network’s consensus rules. Finally, there is the Infantry (Tier 1), comprising end-users who wish to run their own node using their own hardware or cloud servers.

An Almighty Battle With Prizes at Stake

Bluzelle has devised an array of tasks for each of the groups participating in Swarm of Duty II to complete. For example, its Special Forces have been tasked with providing oracle price feeds by connecting to external data sources via API.

Oracles are crucial in enabling blockchains to execute smart contracts based on the outcome of real-world events, ranging from sports results to the weather.

Ultimately, Bluzelle is seeking feedback and suggestions of all kinds from its community on matters ranging from technical infrastructure to UX. As a result, it’s created an open category for creative ideas that will help to improve the network in every conceivable way. Swarm of Duty II is expected to be the final incentivized testnet before Bluzelle releases its mainnet. At that point, its 10,000 TPS blockchain will be rolled out to dApp developers.

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Source: https://cryptopotato.com/bluzelle-launches-second-swarm-of-duty-validator-program-as-mainnet-looms/

Continue Reading

Blockchain

Audio Streaming Mogul Spotify Considering Cryptocurrency Payments

Avatar

Published

on

Joining the tech and financial services bigwigs in the payments revolution, Spotify too is going the crypto way. The Swedish audio streaming and music services giant just put up a job offer for an Associate Director, Payments Strategy & Innovation. The desired candidate will play a key role in ‘navigating the company’s payments rudder’ through the cryptocurrency ecosystem.

Spotify Looking To Be A ‘Leading Player In The Cryptocurrency Space’

As per an official job opening that Spotify just posted, the company is looking for an Associate Director for their Payments Strategy & Innovation Team. The said individual would report to the Director of the same team. And will be instrumental in Spotify gaining a considerable foothold wrt integration of cryptocurrency payments. According to the description:

We are now looking for an outstanding Associate Director to join our Payments Strategy & Innovation team. This role will report to the Director, Payments Strategy & Innovation and will play a key part in defining and implementing Spotify’s payments strategy as well as leading Spotify’s activity within the Libra stablecoin project and wider digital asset & cryptocurrency space.

The objective is to address the company’s plan of ‘enabling new monetization opportunities’ for music creators. Also, Spotify wants its platform to become accessible to a larger section of potential users.

Spotify intends to inculcate all the latest fintech trends in their payments strategy, including cryptocurrencies. So that users from all sections of the society can access the music streaming platform.

Crypto Agenda Involves Libra As Well

One of the designated roles of the incoming Associate Payments Strategy Director would be to lead ‘Spotify’s day-to-day engagement with the Libra Association.’ This is due to the ongoing alliance of the company with Facebook’s digital currency project.

Along with this, the company is looking to leverage all the blue-chip aspects of the blockchain and cryptocurrency space. This includes stablecoins and Central Bank Digital Currencies (CBDCs). It is to streamline its transition to the most advanced payment methods available in finance at the moment.

The Associate Payments Strategy Director would be required to fulfill the above roadmap by making use of

Spotify’s global footprint to seek out innovation in the payments domain globally as well as emerging regulatory & market trends that could influence Spotify’s approach to payments.

Through all the above, the company actually intends to elevate its ‘reputation as a market leader in payments’, the website said. And give giant payments players like PayPal a run for their money.

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Source: https://cryptopotato.com/audio-streaming-mogul-spotify-considering-cryptocurrency-payments/

Continue Reading
Blockchain21 hours ago

Spotify Thinking of Accepting Bitcoin

Blockchain21 hours ago

Litecoin, Cosmos, Dogecoin Price Analysis: 03 December

Blockchain3 days ago

Greenheart Punt World Debut on DigiFinex

Blockchain5 days ago

Coinbase unwilling to participate in Spark’s airdrop

Blockchain2 days ago

IlCOIN Launches Blockchain-Powered VR First on Steam

Blockchain5 days ago

EOS Finds Support above $2.80, Resumes Upside Momentum

Blockchain5 days ago

ECB Lays out ‘Reinvention of Money’ Strategy

Blockchain3 days ago

Mining City: A Blueprint for Success?

Blockchain5 days ago

Trading 212, PayPal Crypto User Ban, BTC and ETH Tank: Editor’s Pick

Blockchain5 days ago

Bitcoin Grows By 5%, $18K Level Holds The Key For More Upsides

Blockchain4 days ago

Yearn Finance Continues Growing with Latest DeFi Acquisitions

Blockchain5 days ago

Bitcoin: Temporary Correction or No ATH This Year? The Crypto Weekly Market Update

Blockchain5 days ago

Weekend bull trap? Traders remain cautious as Bitcoin price rebounds to $18K

Blockchain5 days ago

Wall Street Giant Guggenheim Fund Seeks SEC Approval to Buy Bitcoin Worth up to $500 Million

Blockchain4 days ago

Bitcoin, Ether, and XRP Weekly Market Update November 30, 2020

Blockchain4 days ago

Golff Vault 2.0’s New Launch – One-Stop Services Encrypted Bank

Blockchain5 days ago

Curve Finance to Distribute Almost $3 Million in Fees

Blockchain5 days ago

Bitcoin: Temporary Correction or No ATH This Year? The Crypto Weekly Market Update

Blockchain5 days ago

Bitcoin: Temporary Correction or No ATH This Year? The Crypto Weekly Market Update

Blockchain5 days ago

Ripple Plans To Cash Out 33% Of Its MoneyGram Stake With A Significant Profit

Blockchain5 days ago

Editorial: Why the 2020 Bitcoin Bull Run Ain’t Over Yet?

Blockchain5 days ago

UAE, Saudi Arabian central banks release report on Project Aber CBDC trial

Blockchain5 days ago

Ripple Plans To Cash Out 33% Of Its MoneyGram Stake With A Significant Profit

Blockchain4 days ago

J.P. Morgan Analysts Foreshadow Further Bitcoin Declines

Blockchain4 days ago

TRON’s BitTorrent Partnered with Huawei

Blockchain4 days ago

BREAKING: Bitcoin Miners in China’s Yunnan Province Cut off from Electricity Supply

Blockchain3 days ago

Facebook Libra changes name to Diem

Blockchain5 days ago

Can RippleNet bridge ‘local CBDCs’ efficiently? This exec thinks so

Blockchain5 days ago

South Korea To Postpone Previously Planned Crypto Income Tax

Blockchain4 days ago

Nicholas Baumer Appointed Chief Marketing Officer by Tickmill

Blockchain5 days ago

Bitcoin SV, Maker, Ethereum Classic Price Analysis: 29 November

Blockchain5 days ago

Guggenheim Funds Intends $500 Million BTC Investment

Blockchain5 days ago

Visa CEO Alfred Kelly: ‘We Are Very Interested in Cryptocurrencies’

Blockchain4 days ago

SEC Letter Reveals China’s Crypto Ambitions Threaten US

Blockchain4 days ago

5 Reasons Why Bitcoin Just Hit an All-Time High Price

Blockchain5 days ago

ETH Buyers Defend $500 While The Coin Sets Local Low For The Year

Blockchain5 days ago

How Bitcoin Gets to $100,000

Blockchain5 days ago

South Korea To Postpone Previously Planned Crypto Income Tax

Blockchain5 days ago

South Korea To Postpone Previously Planned Crypto Income Tax

Trending