You will probably know there is a new kid on the block when it comes to paying for your e-shopping spree. BitCoin has both its disciples and its detractors. I myself couldn't quite, at first, get my head around the relevancy of this new cryptocoin but with time and with acceptance of this payment media by PayPal no less (seemingly) I am now firmly in the pro-camp. Resortique now banks on BitCoin as a credible payment medium.
Much has been written about BitCoin and, in particular, the downsides of accepting BitCoin as a payment medium. I'm going to dispel those negatives in a few short lines. Clearly the below is a personal take on this. As always you should read up on the subject and form your own opinions.
It's not a real currency!! The Oxford English dictionary defines currency as "A system of money in general use in a particular Country". We can argue that BitCoin is a real currency. It certainly has less restrictions than the Chinese Yuan.
Ok then, but it's not backed by Government guarantees to pay the bearer!! That's true. But had Greece still been on the Drachma, the Government guarantee would have been useless. And if Europe ever witnesses a first-line bank collapse, you WILL lose the money the Government is supposed to be guaranteeing you. In short, the existing guarantees are not as bankable as first thought..
There's no proper mechanism to control my stock of BitCoin!! That may have been fair comment a year or two ago and the industry has certainly seen its fair share of spectacular failures of "BitCoin Banks" over that period. But it now seems that self-regulation is coming to the fore. And with PayPal entering the cryptofray (though at what price per transaction??) the credibility is certainly maturing. And if you think that the current banking industry which holds onto our traditional forms of saving is a paragon of self-regulation ... then think again.
There's no easy way to collect my BitCoin payment from buyers!! Far from it. There's plenty of software companies out there that will add the required functionality to your shopping cart (BitPay being one). It's as easy (easier in fact) than receiving payment by credit card. Furthermore, once payment is made, that's it. No more pesky and expensive charge backs. On top of all that, you won't get stung by the payment gateway's transaction fees that, all in, will vary from 3.5% to 6.0%. Expect a transaction fee of up to 1% for BitCoin payments.
The BitCoin exchange volatility makes acceptance a risky proposition!! True, if you really want to play the risk game and hold onto your BitCoin receipts over a period of time. But that's not business ... that's gambling. Wise practice is to sign up to a reputable BitCoin Exchange "bank" such as ANXBTC (the Resortique choice) who will take your BitCoin receipts and exchange them on the open market for your local currency. Your currency fluctuation risk exposure will, in this way, be limited to a 24 hours window. Oh, and by the way, we've even got BitCoin ATMs here in Hong Kong so you can translate into ready cash very easily indeed.
It's simply not safe to pay with BitCoin over the internet!! This statement is far from true. The transaction keys are heavily encrypted and as the transmission technology is recent you'd probably find it safer to transact a BitCoin payment over the internet as compared to one using credit card.
Finally ... how can I deal with something I don't understand? Welcome to the more general world of finance. It you don't understand mining algorithms and the rest of it, you're not alone. But do you even understand everything about your pension plan? Are you fully au fait with the small print on your car insurance? Yet you still plough on and those particular uncertainties may nag you for years.
So there you have it. Resortique are fans of the BitCoin cryptoworld. Please feel free to use this form of payment on your Resortique purchases.