Why We Accept Bitcoin

Bitcoin_accepted13 Feb 2014 / Forbes – The following guest post is by Roger Wu, cofounder of the native advertising and storytelling platform Cooperatize.com.

Our company is now accepting Bitcoin as a valid form of payment and will soon be offering to our publishers a Bitcoin payout if they desire.  While the future of Bitcoin is still undecided, we did our research and decided to accept them after speaking to a number of experts.  Bitcoin is quite complex, but while understanding TCP/IP is exciting, it is not needed in order to send an email; understanding the underlying mathematics and cryptography is unnecessary although quite fascinating: Bitcoin and other related crypto currencies just work.  We summarize the top five reasons that we heard consistently from our pundits.

1. Lower transaction costs.  The obvious and short-term benefit to using Bitcoin as compared with other clearinghouses like credit card companies, PayPal, and Western Union WU -1.25%, are the lowered transaction costs, averaging in at 1%, as compared with the aforementioned at 2-4%. “With Bitcoin we can take temporary deposits and refund the amount without incurring charges” says Alex Shapiro, founder of AmuseMi.com.The implications of the low cost transaction are wide ranging from micro-payments to peer-to-peer to international to the “unbanked’s” transactions.

Micro-transactions: Companies like PayPal implement a $.30 flat fee plus a percentage of the transaction as their fee.  With a strictly variable pricing model, Bitcoin could open the door for the micro-transaction ecosystem to finally be economically viable.

Peer to Peer Transactions:  The barrier to entry to create your own small business has come down and more small businesses are opening up benefiting companies like Square, and other SMB enablers. With Bitcoin, peer-to-peer transactions become even simpler….. Read more


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