Bitcoin: why businesses are buying in, despite critics and start-up woes

nybitcoincenter14 Mar 2014 / Christian Science Monitor – Despite its well-publicized troubles, including volatile and plunging currency values, the trendy new form of payment known as Bitcoin has a growing allure for many businesses, both online and in the real world.

The cool factor as well as the cash factor – the absence of transaction fees – are the main reasons for a move into what the casual observer might consider a risky form of money. Two recent Bitcoin exchange failures and the death of a Bitcoin CEO have thrown a pall over Bitcoin in the minds of many.

In particular, new businesses whose profit margins are often razor-thin in their debut years are thrilled at having an option to avoid the 3 percent fees they must pay to credit card companies, on average. And if they can be seen riding the hottest new pop culture wave while they do it, so much the better.

“We are trying to be innovators,” says David Daneshgar, co-founder of the Los Angeles-based BloomNation, a new online floral business that connects buyers directly with the local florists who will deliver the arrangements.

“We want to be progressive and change the way people buy flowers, and using Bitcoin is part of that change,” he adds.

Tapping into the Bitcoin community has had some surprise benefits, Mr. Daneshgar says. “If you follow the discussion threads on the online Bitcoin forums, you see how supportive they are of businesses that accept Bitcoin,” he says…. Read more

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