Editor´s note: Eileen Burton is a Financial Expert and a Blogger. In her articles, she throws light on the current financial market trends, business world, and ecommerce industry. As an academic writer, she offers his expertise in assignment help UK
The currency has come a long way since its inception as a mainstream form of payment. Earlier people used the barter system to send and receive the payments. It was a form of trade that allowed the two people to exchange the goods. However, it was soon replaced by a more efficient and better currency system that exists even today.
Nowadays, the process of trading is far more convenient than what it was in the 20th century due to the availability of online retailers and ecommerce websites. Today, you’ll find many middlemen doing the job of a facilitator between the vendor and client. The majority of these middlemen are online payment systems and financial institutions serving to every type of industry.
Germany hosts one of the largest ecommerce market places with more than $63m dollars (€59m Euros). This emergence of online payment system particularly benefits the retailers of household electronics and food industries as they top in list of the leading contenders of ecommerce market in Germany.
In the past few years, the online shopping in Germany has witness a growth in use of bitcoins as online payment system. Plentymarket is one of the first German online marketplaces that accepted bitcoins for payment transactions of its products.
Interestingly, the growing rise in transactions of bitcoins in German market has led to a rise in loan services that deal in this newly-accepted form of online currency. Bitbond is one of the first German online lending platforms that offer loan in bitcoins.
Online Payments And The Ecommerce Marketplace
The expansion of the online shopping trend means that the world is no longer a global village, but a global market. Today any German can easily buy anything from any ecommerce website in any part of the world thanks to the online payment methods.
For such type of transactions, conventional currencies are not the perfect choice. Among the many hurdles, the major issues include the variation of variances in exchange rates, delays and security concerns.
What Are Bitcoins?
For decades, the notion of an international currency has been the subject of many debates. The concept hypothesizes a currency system that can ensure the privacy of its users, protect them from rising prices and secure them from thefts and frauds.
The arrival of ‘bitcoins’ fulfills the idea of such form of currency system in the true sense. It is a form of currency system that uses the virtual platform to send and receive payments.
It first made a splash in 2009 starting with only 2,625,000 coins. Since then, it has increased to 12,091,050 coins with a value of around $736 dollars (€698 Euros). With its growing popularity, several online vendors and websites have started accepting bitcoins as a form of online payment. The list includes some very popular websites.
However, there are still some glitches with using bitcoins as a major form of online payment and this is what compels us to share with you some facts about bitcoinss, its benefits, and limitations.
In this article, we are going to weigh in the pros and cons of using bitcoins as a form of currency. Here they are:
1. Ease Of Payment
If you are using bitcoins for transactions, it’s easy to transfer and receive money from anywhere at any time. No custom haggling, exchange rates, bank holidays or bank timings pose a hindrance while getting your money if you deal in bitcoins. Additionally, there is no such authority as the World Bank to control your money. Only you are in charge of it.
2. Increased Privacy Protection
This control keeps your bitcoins secure. Vendors and retailers cannot charge exorbitant extra fees like they can do with credit cards. Any extra charge will immediately be noticed and reported.
When dealing in bitcoins, personal details are also not required, giving a guarantee of safety in that area, as identity theft is not a risk. Lastly, to keep your money safe, bitcoins are backed up and encoded with encryptions.
Moreover, the money transfers and deals can be seen by both parties and corroborated using what is called the bitcoins Block chain. These rules and regulations cannot be messed with by anyone, be it a civilian, politician, company or even a government. This is again due to bitcoins being encrypted, and, therefore, secure.
3. Low Transaction Fee
There are insignificant, if any fees while making transactions on bitcoins. The more the fee, the higher will be its priority as a mode of online transaction and the faster will be the processing. So basically, one is just paying more for quicker service. Some services are available that change bitcoins into conventional kinds of currency. These cost less than other money transfer services such as PayPal which prevalent in the ecommerce market of German.
4. Safety From Cyber Crimes
Since one does not go around carrying bitcoins in their pockets, they obviously cannot be directly stolen. The dealings in bitcoins can neither be taken back nor do they require personal contact information, hence protecting both buyers and sellers from losses which might occur in more conventional transactions.
Vendors and buyers can work even in areas where the crime and embezzlement rates are sky-high, as it is extremely difficult to fool or hustle anyone when using bitcoins. As mentioned before, the blockchain is a kind of public ledger that prevents fraud and other forms of cybercrimes.
1. Fewer Number Of Users
Many people are still oblivious of virtual currency. Although, there are small businesses in Germany who have a payment system based on the use of bitcoins, but they are only a handful of companies. All in all, there isignorance among the laymen regarding the use of this form of payment which makes it a secondary mode of payment for the businesses.
2. There Are Financial Risks
Bitcoins are valuable because due to their scarcity and their demand is constantly going up. As more bitcoins are issued, this trend will decrease.
The exact price of each bitcoins remains fixed. Since it is spread all over the world, the variances in the actual currencies of a country have an effect on the value of bitcoins. So the holders of bitcoins are always at a risk of bearing losses when the price goes down.
3. It Is Still In The Nascent Phase
Bitcoins is still an enigma for many businesses. As the concept in its formative years, it will take some more time before the use of this form of currency gain traction in the business world. Until then, there will be an uncertainty in the people to rely upon this currency for business transactions.
Bitcoinsare still a new thing for the business community and the laymen. Considering the growing popularity of this payment system, we will not have to wait for long to see the businesses making payments through bitcoins.
Author´s Bio: Eileen Burton is a Financial Expert and a Blogger. In her articles, she throws light on the current financial market trends, business world, and ecommerce industry. As an academic writer, she offers his expertise in assignment help UK