Use Your Smartphone To Buy Groceries. In Bitcoins.

fivemarkets11 Feb 2014 / Forbes – Bitcoins’ security features, which make fraud difficult within its ecosystem, should further encourage adoption of the currency to buy groceries, says Ciabarra. This is further complemented by the convenience of using ubiquitous smartphones to make payments. According to Fong, over ninety percent of her customers are smartphone owners. The addition of Bitcoin integration will make it even more easy for them to make payments using their smartphones, she says.

To be sure, Five Markets is a nondescript grocery store with a limited number of aisles and high customer churn. While the Bitcoin use cases for large establishments, such as Target TGT +1.43% and Walmart, to meet customer demand are clear, small businesses are charting untested territory here. This is because Bitcoin is still a relatively untested currency. Although it has zoomed to stratospheric valuations in the last two years, the digital currency’s current valuation has come at the cost of volatility.

As I mentioned at the start of this piece, the currency slid to its lowest price in two years yesterday due to detection of fraud at Tokyo-based Mt. Gox, the world’s largest Bitcoin exchange. Speculators, such as the Winklevoss twins, have jumped into the Bitcoin fray and are driving up demand for the currency by sucking out large portions of its existing market. The average volume of transactions, a key factor affecting the currency’s prices because of limited Bitcoin supply, is already rising. However, most of those transactions are limited to speculative activities such as buying and selling of the digital currency….. Read more

http://www.forbes.com/sites/rakeshsharma/2014/02/11/use-your-smartphone-to-buy-groceries-in-bitcoins/

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