Bitcoins is a digital currency. As modern as the term sounds, its utility suits every requirement of an online shopper. If online payments were a step ahead of the hard cash transactions, Bitcoins further free you from the tedious card no.-OTP-verification cycle.
Bitcoins excludes any bank or financial institute from its process. It provides you a digital wallet where you can keep your Bitcoins and use it for online purchase. These coins can be purchased by using your credit or debit cards or through online banking at once. In e-commerce, it is useful for both, merchants and customers.
Here are some pros and cons of Bitcoins which can be valuable for e-commerce
Pros:
Option for e-payments
Online payments are usually done by lengthy processes – credit or debit cards or internet banking. Ecommerce websites do provide e-wallets where you can deposit money. But the easier option is Bitcoins which can easily be exchanged for the goods or services you want. Besides, you can exchange Bitcoins by using Coinbase or BitPay
Fast transaction
Bitcoin transaction speed fits today’s fast moving world. Pending payment requests, transaction failures are eliminated with Bitcoins. It reduces the same problems on the merchant side, effectively speeding up shipping of the products.
No international currency problems
Ecommerce is a worldwide business. Merchants as well as buyers may face currency problem across borders. Converting a currency online is not an easy task. Bitcoins is a good option where you can buy these coins with your currency. You can exchange it for any good or services irrespective of the country.
No fees
Bitcoin has an agenda of customer first! They do not charge extra fees for transaction which proves valuable for merchants. The only fee you require to pay is if bank asks credit/debit card transaction fee while buying Bitcoins.
Security
Bitcoins provide multi signature process to avoid theft. Additionally, creating back up of your wallet’s digital keys, encryption of digital keys and cold storage of Bitcoins are also provided to secure your Bitcoin account. Creating new Bitcoin address for one time purchase secures your wallet even if the other company’s website is hacked.
Trust Building
Bitcoins carry transaction of digital currency only. They free you from service regulations of banks and other financial services. You can have complete access over your finance and treat your business the way you want.
Cons:
With many pros, Bitcoin has some cons too. As it is an online service, it can be hacked and coins can be stolen. Though the possibility is minimum, thanks to the security options, it still can be done.
Major problem of Bitcoin is its volatility. Many institutions can hold their Bitcoins till their currency gains strength in the market. Currency commodity market can also affect the value of Bitcoins.
