How Bitcoin Is Changing The eCommerce Landscape
Bitcoin and Ecommerce: these phenomena are gaining traction by the minute because of the potential they offer. Ecommerce has revolutionised the way people used to shop. With the onset of a full-blown global Pandemic, people have realized the importance of having online alternatives to shop for even the most basic amenities such as groceries and toilet paper.
When country after country announced a total lockdown, there were loads of losers but a handful of winners. Only those retail businesses could sustain themselves, which had already built a sophisticated eCommerce store. But, as eCommerce gains popularity, there are still a few inefficiencies, that deter people from partaking in online shopping. This is where Bitcoin steps in, but before we see how cryptocurrency is changing eCommerce, let’s understand Bitcoin
Bitcoin is an alternative to traditional currency. It falls under the domain of cryptocurrency. There were significant reasons that contributed to its birth: decentralization of the financial system. Found in 2009 by Satoshi Nakamoto, the rationale behind the inception of Bitcoin was to shift financial power from central banks back to the people.
Third-party actors not only extracted exorbitant transaction fees from people, but also contributed to bogus credits that accumulated to bring about a financial crisis. People are losing trust in the traditional currency system, and this has brought significant traction to Bitcoin.
When it was found, there was a profound mistrust between financial experts and Bitcoin, but slowly the digital currency started to leave its mark. Countries like India revoked decisions passed by Central Banks and started to facilitate the use of Bitcoin.
The critique launched at Bitcoin is regarding is volatility and anonymity. If you want to track the conversion of bitcoin to INR, then you have to frequently check the price, to know where it stands. But the same opposition can be extended to the traditional currency which is continuously subject to inflation, and a reduced purchasing power.
How is it transforming eCommerce?
There are two important dimensions of eCommerce that are improved with the adoption of Bitcoin.
Efficient Transaction and Delivery
Today’s world is dominated by speed. Look at our smartphones and computers. Every year we pay for new technologies because they promise lightning-fast speed. People want an increased efficiency in their lives, and Bitcoin offers that. Traditional payments made to eCommerce stores take days to process because of the network of banks involved, but this is not the case with bitcoin.
With a single click, a person using bitcoin can transfer money from his wallet to the store, and they can process the order right then. Traditionally, stores had to wait for days before they had the guarantee that money is coming for an order they are processing. This miscommunication is avoided with Bitcoin.
Overseas Business Facilitated
eCommerce stores made in developed countries can never unlock markets in the developing world. These markets not only have a staggering population, but also a vast purchasing potential. But, access to these markets was limited due to paying options. Transaction solutions like PayPal are not accessible to the developing world, because of its too risky.
This changes with the use of Bitcoin. Bitcoin is a peer-to-peer service, which means that with a single click, money can be received at its intended location, without having to pay exorbitant transaction fees and the wrath of financial regulators. This can not only increase the scale of eCommerce in the developing world, but also inspire marketers to adopt this skill.