PayPal, Re/Max, Dell, Microsoft, Wikipedia, Shopify – all of these are household names, but they also have another thing in common. These brands are just some of the big names that have opted to accept Bitcoin as a legitimate source of funds. Big brands are no longer ignoring the impact of Bitcoin and other cryptocurrencies; instead they are embracing them as a payment option and moving with the times, writes Chris Fenton.
Gone are the days of when Bitcoin had a reputation for being something of an obscure currency that existed only on the Darknet, this cryptocurrency has now gone mainstream and some of the biggest tech-based and non-tech based companies have got behind it. The currency has grown dramatically as an asset and has risen in value by nearly 900% in 2 years. This has caught the attention of progressive, forward-thinking companies who have all opted to jump on the cryptocurrency bandwagon.
Proponents of Bitcoin
Bitcoin is changing the face of currency for almost all industries, and it is interesting to note that even those like PayPal are accepting change, even when it is almost in direct competition with their own offerings. For other online e commerce entities accepting Bitcoin makes sense, and popular gift card site eGifter, Shopify stores, online electronic retailer Newegg, online e-tailer Overstock.com and an ever-growing number Etsy vendors have all become Bitcoin-friendly. These are just a few of the better-known brands, but there are several other smaller entities that now also accept Bitcoin.
For tech giants like Microsoft and Dell, accepting Bitcoin just makes sense. Both brands are always looking at new ways to expand, and with Bitcoin having been declared a legal currency in Japan- one of the bigger tech markets- those who opt not to accept cryptocurrency may soon get left behind. With the current instability of the worlds regulated financial markets, Bitcoin has become the choice of many savvy investors, entrepreneurs and businessmen, and the brands who are accepting this decentralized digital currency are potentially attracting a bigger market share by not sitting on the fence.
Why not everyone is a Bitcoin fan
With so many big name brands now accepting Bitcoin many are asking why more businesses are not jumping on board. The answer to this is essentially two fold, but there are also other factors that make this cryptocurrency less than attractive to everyone.
Firstly, Bitcoin has proven itself to be incredibly volatile and even an overnight fluctuation could see a businesses lose out on a large sum of money. Bitcoin has been known to lose more than $200 a day in value, and this could cripple smaller businesses that don’t have the means to recoup losses. Entire profits could be wiped out in a matter of hours, and companies may find themselves unable to cover costs if Bitcoin value drops sharply. While the lack of governmental control is one of the reasons so many investors like Bitcoin, it also lends the cryptocurrency to being incredibly vulnerable, and not necessarily the wisest choice for businesses.
Secondly, many are aware that Bitcoin is already attracting the attention of regulators and that the cryptocurrency may suddenly be subjected to stringent laws that render it almost valueless. As Bitcoin is already acting as a bridging currency for marijuana purchases it’s attracting attention, and that’s not necessarily a good thing. If the U.S government, or any other large regulatory body steps in, it could easily stop Bitcoin’s upward trajectory and crush the cryptocurrencies price.
At present it looks like Bitcoin is very appealing to larger brands that can handle losses along the way, whereas for smaller, more vulnerable brands, accepting this digital currency is not yet a good idea. Only time will tell what happens with Bitcoin, Ethereum, Dash, Auroracoin and all other cryptocurrencies that are so intent on altering the way we transact in the digital world.