We at Crazy Web Studio in Phuket are constantly following the newest trends and updates, both in terms of the new technologies used in the industry, but also other features and options that could be used in order to make life easier for our clients (and us).

We have of course also been following trends like cryptocurrency such as Bitcoin – with great interest!
This is the big thing that everyone is talking about currently, but at the same time, this is also what most people find themselves quite puzzled about, because what is it actually? What can it do for you and your business? And also, how does it allow you to use it to pay for services and products online?

This article will introduce you to the the world of Bitcoin, what it is, the explanation of key terms, what it can do, what benefits it has for you and how it can used as an advantage – from a business perspective. Let’s take this from the beginning.

What are Bitcoins?

Shortly explained, without going too much into the details, as this article will be quite elaborate even with short explanations, we are here gently touching each key term that is important for you to understand when talking Bitcoins.

Bitcoin uses a peer-to-peer technology in order to operate (transfer and receive cryptocurrency) without any need of central authorities or banks. Once this is said, this is also the main advantage, that pulls the attention of the masses. This is the first digital currency of its kind.
The transaction and management of Bitcoins is strictly handled any issued collectively, by the network itself.
Bitcoin uses an open-source system, that the inventor Satoshi Nakamoto (pseudoname, real inventor is still unknown) has shared via Sourceforge at the beginning of 2009, that since has created a landslide in the financial sector and digital world.

What makes Bitcoin so interesting, is as mentioned, because it cuts out the middlemen, so there are no extra added fees for transactions, handling, administration or anything else.

Bitcoin isn’t actually owned by anyone. Think of it like email. Anyone can use it, but there isn’t a single company that is in charge of it. Bitcoin transactions are irreversible. This means that no one, including banks, or governments can block you from sending or receiving bitcoins with anyone else, anywhere in the world. With this freedom comes the great responsibility of not having any central authority to complain to if something goes wrong. Just like physical cash, don’t let strangers hold your bitcoins for you, and don’t send them to untrustworthy people on the internet.

Bitcoin is an open-source system, meaning that its design is public and that nobody owns or controls Bitcoin, so everyone can take an active part in developing it further – which again makes it very interesting for tech-savvy guys, triggered by using and developing a digital currency and helps it evolve at the same time – giving the traditional financial- and now also stock-markets a tough time.

Is Bitcoin a currency?

The question whether bitcoin is an actual currency, or not is still disputed today, although the rollercoaster is about to reach its peak and become a serious measure to deal with as it since August 2017 has reached a new milestone in its steady growth and has split into two derivative digital currencies, the classic bitcoin (BTC) on one side, and Bitcoin Cash (BCH) on the other.

According to research produced by Cambridge University there were between 2.9 million and 5.8 million unique users using a cryptocurrency wallet, as of 2017, most of them using bitcoin. The number of users has grown significantly since 2013, when there were 300,000 to 1.3 million users.

Acceptance of Bitcoin payment by merchants

Bitcoin is money for the Internet. It is a scarce digital commodity used as money by millions around the world. People buy coffee with Bitcoin at local shops. Others get paid in Bitcoin and use it to shop online – now also when it comes to payment of our services.

Since its start in 2009, Bitcoin has provided an alternative to traditional government-issued money. No single government, corporation, or nation controls Bitcoin. There is no need for a Bitcoin bank. People store Bitcoin in software called a wallet, which is available for almost any device.

In 2015, the number of merchants accepting bitcoin exceeded 100,000. Instead of 2–3% typically imposed by credit card processors, merchants accepting bitcoins often pay fees in the range from 0% to less than 2%. Firms that accepted payments in bitcoin as of December 2014 included Paypal, Microsoft and Dell. 

We at Crazy Web Studio therefore have decided that we’d like to be first-movers in our market and announce that we from now on, also will accept payments made in Bitcoins from today onwards.
We’re using a service called BitPay. When a customer pays in bitcoin, this payment service provider accepts the bitcoin on behalf of the merchant, converts it to the local currency, and sends the obtained amount to merchant’s bank account, charging a fee for the service. It’s as easy as that, really and you’re simultaneously “under the radar” when it comes to other banks and other financial institutions.

The price of Bitcoins

Like everything, Bitcoin’s price is determined by the laws of supply and demand. Because the supply is limited to 21 million bitcoins, as more people use Bitcoin the increased demand, combined with the fixed supply, will force the price to go up. Because the number of people using Bitcoin in the world is still relatively small, the price of Bitcoin in terms of traditional currency can fluctuate significantly on a daily basis, but will continue to increase as more people start to use it. For example, in early 2011 one Bitcoin was worth less than one USD, but in 2015 one Bitcoin is worth hundreds of USD. In the future, if Bitcoin becomes truly popular, each single Bitcoin will have to be worth at least hundreds of thousands of dollars in order to accommodate this additional demand.

BENEFITS OF PAYMENTS WITH BITCOIN

• Keep more of your money (Credit cards take up to 3% in processing fees on every transaction)
• Accept bitcoin with BitPay and get direct bank deposits in your own currency for a simple, flat 1% settlement charge.
• Sell to anyone, anywhere.
• Connect to the world’s first borderless payment network – Bitcoin.
• Receive payment in any amount, from anywhere in the world, from any computer or mobile device.
• End chargeback fraud and identity theft.

Other payment methods force customers and businesses to shoulder the risks and costs of payment fraud. With bitcoin, customers can pay without handing over sensitive personal information, and refunds are made through the merchant — no chargebacks.

Are you ready to take the next step and either invest, pay or charge in Bitcoin payments? Are you the next first-mover in your market?

Feel free to get in touch with us today in order to know more about payments with Bitcoin.