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Sunday, December 10, 2017

Bitcoin Is Not Merchant Friendly

Are you are merchant that is thinking seriously about incorporating bitcoin as part of your payment options available to your customers? If yes, that is not a bad idea. But you need to know about this disadvantage of such an actions.

  1. Bitcoin transaction takes a minimum of 15minutes to confirm. Consider this, how does your customers behave when they have to wait few seconds for your POS machine to process their payment, now how will they behave if they have to wait for at least 15minutes with no guarantee that the transaction will even be confirm by bitcoin miners.
  2. Transaction fee for bitcoin is growing. As the price of bitcoin grows, this makes every single little satoshi valuable. And as it stands, the price of bitcoin has nothing to do with the amount charge as transaction fee. As of now, the transaction fee for each bitcoin payment stands between $15-20.
    Now tell me, which of your customers will be willing to pay so high a transaction fee for purchasing an item that is not even 20% of the transaction fee e.g. a cup of coffee.
  3. The bitcoin exchange price is far from stable. Just in a space of 24hours (December 6-7) the bitcoin price went from $12770 to $16583, and in a space of 4days (November 8-12) is sunk from $7458 to $5857.
    Can your business handle such a demand of adjusting the price of your goods and services every now and then just because the exchange rate of bitcoin is far from stable?
I am not writing to discourage your from incorporating bitcoin as one of your payment option for your business, I just want you to know the facts about down side bitcoin poses to merchants.

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