To merchants, Bitcoin is proving to be lucrative. According to Bitnori, on a single transaction, merchants pay about 10 percent commission for every transaction in Bitcoin.
This is much lower than the rate of commission on transaction by the debit card network.
The use of cryptocurrency also helps reduce the cost of acquiring customers, a major challenge for a lot of merchants. For instance, consumers can pay for a food product online and it will be delivered within 24 hours with no extra charges.
This is possible because the merchants have to invest less money on customer acquisition as the Bitcoins that they acquire will help buy the food.
Though the rate of Bitcoin appreciation is gradually on the decline, it is still a good investment opportunity. However, until more merchants enable cryptocurrency as a payment option, it might remain a tool for speculation for some time.
Your cryptocurrency is not frozen
Bitcoin has no inherent value. It is only a medium of exchange that has been worth above $35,000 for many months now, but it will not be able to achieve a broader acceptance as a currency if the value of it continues to decline.
There have been a lot of attempts to determine the intrinsic value of Bitcoin, but the truth of the matter is that no one can really say for sure.
A few years ago, Bitcoin came under the domain of the academicians and a major study was undertaken. It failed to arrive at a conclusion. This is partly because people on the street do not understand or value cryptocurrency the way academicians and economists understand it.
Bitcoin under attack
As it is the case with all cryptocurrencies, Bitcoin is not free of frauds and thefts. This is not to say that other digital currencies are immune. However, Bitcoin is being attacked in more ways.
Some Bitcoin miners are illegally "minting" fake Bitcoin by usrupting the system. This is further complicated by exchanges getting hacked. More importantly, it was reported that about half of Bitcoin exchanges around the world have had their Bitcoin reserves frozen by the regulators.
This is a sobering development and it is good to remember that Bitcoin should always be treated like money. It is still being treated as a currency even though it might be important for people to make financial transactions in Bitcoin. This is not to say that Bitcoin is going down the drain, but it must be treated with caution until it grows up a bit.
All these can be said about Bitcoin because it has not achieved a level of acceptance that it deserves. We need to see Bitcoin as the first cryptocurrency and have a lot of faith in it. It is the future of money.
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