CEO of Chain of Points, Irene Katzela as well as Bitcoin Company executives believe that Bitcoin Adoption by merchants in the mainstream is crucial for Bitcoin.
The Bitcoin Industry and market has seen an influx of new merchant integrating with Bitcoin since 2014. Companies like Expedia, Tiger Direct & Bitmart has begun to offer Bitcoin as their main form of payment method.
Bitcoin is seen more as a safe haven or a store of value rather than an actual currency that can be spent on a day to day basis. Bitcoin investors like Roger Ver says that the community development of Bitcoin must work in the direction of transforming bitcoin into a settlement system for payments and a digital fiat system instead of a digital gold.
Its important to take heart that limited merchant adoption could restrict the Bitcoin Adoption by users and the approach isn’t necessary that bitcoin can be used as both a settlement system and a store of value depending on certain users.
Integration of scaling tech like Segregated Witness or also knows as Segwit currently on the brink of being implemented, Bitcoin Blocks are set to see at least a massive 2.1 times increase in capacity. Taking into account the current block size is only 1mb so a 2.1 increase in size is quite significant and will allow for a decent scale in the network.
Contrary to what some investors claim, the bitcoin blocksize expansion will not bring hundreds of millions of users to Bitocin all of a sudden. The Bitcoin user base is not growing linear but rather exponentially over time.
It is important to convince the general public that the utilization of Bitcoin to the consumer is beneficial and have lots of advantages above cash or other traditional forms of trade and payment systems. Bitcoin platforms like Purse.io are targeting the consumer and mainstream populace by offering a massive 20% discount on goods sold. Some merchants also offer special kickbacks and discounts for users paying with Bitcoin as the Bitcoin currency option reduces fees substantially and merchant fees vanish all together.
When consumers use Bitcoin instead of Fiat and Credit cards and notices that the costs are far cheaper, the transaction is way faster and the merchant’s effort in providing discount for Bitcoin payments, the adoption will go even faster.
“The savings on the merchant side are clear considering the fees incurred by using existing payment methods. An increasing number of merchants pass some of the cost savings onto consumers, in the form of discounts and incentives. As these cost savings continue, consumers will soon realize that virtual currency enables lower prices for goods and services,” said Katzela.
As the volatility of Bitcoin declines more and more Merchants start accepting Bitcoin. The last 12 months Bitcoin has enjoyed a lot more stability than the years before and this is a big plus for merchants wanting to accept the currency.
Although the Bitcoin Adoption of merchants is on the rise the mainstream users need to also grow to keep up to the rate of offering and to avoid drop-offs in merchants abandoning the method of paying with bitcoin due to a lack of consumers not using the method.
“Aiming only to increase the number of merchants that accept virtual currency is only half of the equation for wide consumer adoption. Achieving greater consumer adoption equates making consumers feel safe using virtual currency in their everyday lives,” said Katzela.
Bitmart is currently offering services to help businesses to integrate Bitcoin payment gateways into their operations to start accepting the currency.