Bitcoin is a rising global payment system that beginning to spread in e-commerce platform for users to purchase digital goods online. It is somewhat similiar to “Paypal” as online payment system, however unlike Paypal, the Bitcoin exchange rate is un-metered and can fluctuate instantly. Let’s say, current exchange rate from 1 Bitcoin (XBT) to US Dollar is $234.59. This is a long stretch from when Bitcoin first introduce in 2010 with exchange rate of 1 Bitcoin (XBT) = USD $0.05. Can you imagine the investment gain you could profit by owning a couple of Bitcoin back then?.
In today eCommerce platform, many web developer also trying to adapt the use of Bitcoin as alternate payment gateway for their eCommerce sites. The popular eCommerce WordPress plugin such as Woocommerce and Easy Digital Downloads also had Bitcoin payment gateway as an alternate to paypal gateway system.
is Bitcoin widely accepted for eCommerce transaction? is it safe from hackers? Before dwelling further, read here to learn about how does Bitcoin work?
Bitcoin transaction is Safe and Secure
Unlike paypal, which had central server in certain location that could get DOS attacks and cause you to go offline and lose business anytime. The Bitcoin servers is all around the world, this servers is known as “Bitcoin nodes”. You can install Bitcoin nodes in any modern digital devices such as computer, notebook or mobile phones. These special nodes are used to confirm transactions securely and make sure that there are no fake transactions process in the system, which makes the Bitcoin a really secure system.
Withdraw Bitcoin from ATM Machine
You can withdraw your Bitcoin fund (money) from any ATM with your “Bitcoin wallet” provided by your Bitcoin vendor. The ATM withdraw is currently supported in most country, however here in Malaysia (my home), this is still in early stage and only a few Bitcoin vending machine available. My alternate solution would be an online Bitcoin to Ringgit Malaysia (RM) exchange transfer to local bank.
Consider Bitcoin as Investment
Personally i would consider Bitcoin as an investment. Adding Bitcoin as secondary payment gateway to your eCommerce site will allow you to collect this (maybe) future profitable incomes. Expectantly you would received 1 or 2 users purchase your digital goods with Bitcoin per-month, you might reach one or two Bitcoins within time. Hold it until the conversion rate from Bitcoin to your currency is high. Who knows?, maybe the value will quadruple from current exchange rate. you might end up converting 1 Bitcoin to $1000 US Dollar in the future.
Bitcoin’s Good and Bad
Let’s recap the pro and cons of using Bitcoin.
- Decentralization – Bitcoin isn’t control by one central authority server
- Safe and Secure – least likely to get DOS attack
- Anonymous – one person can hold as many Bitcoin address as he want
- Transparent – all transaction data are encrypted with blockchain
- Low transactions fee – your bank may charge you $20 per-transaction but Bitcoin doesn’t
- Fast transaction – you can send Bitcoin to anyone around the world and it will reach them within seconds.
- The exchange rate is un-metered so you might end up converting 1 Bitcoin into $1000 US Dollar
- Not Refundable – once you send the bitcoin to someone, you cannot claim refund like paypal
- Addictable – you might addicted to “mining” Bitcoins
- Scammer alert – since its not refundable, scammer pray for victims
- The exchange rate is fluctuate, you might end up converting 1 Bitcoin into $1 US Dollar only
Bitcoin as payment gateway in eCommerce is still not widely use like paypal, so only use Bitcoin payment gateway as alternate way of income from your eCommerce site(s). The rise and fall of Bitcoin’s value is still unknown, you could end-up becoming an instant millionaire overnight if the Bitcoin’s value rise to the top.