In a recent report released by the Federal Reserve Bank of Boston, it says that the digital currency can significant reshape global payments. The said report is authored by Stephanie Lo and J. Christina Wang. Although bitcoins will not necessarily replace the conventional currencies or the current payment systems that people use, bitcoins have a lot to offer in bringing innovations and allow people to have convenient and modern payments technology. As the authors noted in their report, bitcoin meets the main functions of money. But just like other alternative, it also poses certain risk especially for those who want to use, invest or trade it.
Bitcoin for Online Commerce
Bitcoin has become widely popular eversince it was launched a few years back. Yet despite is growing popularity, there are also escalating concerns pertaining to its security along with its volatility. These sentiments are commonly shared by government and central banks all over the world. Some say that it can still be risky to have bitcoin as a form of money. But on a positive note, bitcoins are really promising considering the growing digital world that we are now in.
According to authors, bitcoin can be effectively used and become as a solution for online commerce. Many merchants are now using digital payment platforms and some also accept bitcoins for online transactions. As many retailers are now accepting digital currency, the authors believe that bitcoin is promising in the sense that it can be a great alternative to the current financial infrastructure.
Reduced Transaction Costs
One of the benefits of using bitcoins is that it can reduce your overall transaction costs. Merchants and other small business owners can definitely find bitcoins more affordable compare to other options. Accepting bitcoins has lower transaction costs instead of using credit cards. Those who want to get started in accepting bitcoins for their businesses will not have a hard time in setting up this kind of form of payment. You can easily use any of your chosen merchant services to give you a checkout button to make it easier for your customers and clients.
Apart from online based businesses, even physical stores can accept bitcoins. It can still be considered a cost effective solution to accept bitcoins from customers as it offers lower transaction fees and is not prone to chargeback frauds. Even for personal and in different transactions in universities , bitcoins are becoming more and more popular. It gives online user fast and convenient payment system unlike no other.
The Future of Bitcoin
The views regarding bitcoin’s future are still optimistic. Based on the Boston Fed report, the success relies on different factors and among them is the general public who will be using bitcoins. Some might find bitcoins really useful and worth having while others may have different opinion.
Another point raised in the report is the fact that many people are still not aware of bitcoin. It is still at that particular stage where information on the use of bitcoin as other details are disseminated among individuals and groups.