How does bitcoin fit into the fintech strategy?
Here’s what you need to know.
Bitcoin is a form of digital currency created in 2009 by an unidentified person or group under Satoshi Nakamoto. Bitcoin can be used to purchase goods and services as well as pay for personal and business taxes. Bitcoin is not printed like paper money, but rather, it’s created digitally by computers solving complex math problems.
As of December 21st 2017, there were 16.78 million bitcoins in circulation with a total market cap of over $250 billion (Bitcoin Market Cap).
How does it work?
You can get Bitcoins by downloading the Bitcoin software and getting them from an exchange. There are Bitcoin ATMs, and some even allow you to purchase cash and deposit that into the machine to turn it into Bitcoin. Or you can just buy them with cash at various exchanges around the world.
When people talk about buying or selling Bitcoins privately, they mean that you don’t buy or sell through an exchange but with other people directly. This is known as a P2P (peer-to-peer) transaction.
The first thing we need to investigate is how it works.
Bitcoin is a peer-to-peer network. This means that once you have Bitcoins, you can spend them at any time on the bitcoin network without needing any other person’s permission.
“Who owns your Bitcoins?” You don’t; they just sit in your Bitcoin wallet until you decide to spend them.
You can create a new Bitcoin wallet by visiting one of many online wallets and downloading it by clicking the download button. You then follow the instructions to create an account and then wait for your account to be approved. You’ll also be told how to ensure your Bitcoins stay safe and secure.
As soon as you have your Bitcoin wallet, you can download the Bitcoin software. This is a program that operates the servers that talk to the rest of the Bitcoin network. You can download the software by clicking the download button and then installing it. Immediate Edge Software offers you the chance to make an immediate profit while avoiding all of the risk associated with investing in bitcoin.
Now that you have the Bitcoin software, you’ll need to connect your computer to the Bitcoin network using a Bitcoin client. This is just like any other computer program that uses your Internet browser, except that it connects with other computers around the world to send and receive Bitcoins. There are different programs for Windows, macOS, and Linux computers.
How can fintech companies use bitcoin to their advantage?
Bitcoin is a currency that can be used for anything. I’m sure anyone who has bought anything online with Bitcoin has experienced the hassle of converting it to their local currency. This is where companies can use bitcoin to make things easier on people. Just like they would for other electronic payment methods, they’re just trying to make Bitcoin simple and seamless for their customers.
Crypto start-ups have started incorporating Bitcoin into their products and services in order to increase its prevalence and assist in its success as a global currency.
Here are some of the many benefits that fintech companies can use using bitcoin:
Fast, quick payments. Bitcoin transactions are carried out in a few minutes with no transaction fees, and merchants don’t have to pass credit card details.
Bitcoin transactions are carried out in a few minutes with no transaction fees, and merchants don’t have to pass credit card details—transparent, non-bank, non-government regulated payments. Even though banks and governments create a lot of red tapes to prevent businesses from accepting Bitcoin, it is still far more efficient than using regular payment methods like PayPal or credit cards. It’s not one of these secret standards that we heard about in the nineties.
Even though banks and governments create a lot of red tapes to prevent businesses from accepting Bitcoin, it is still far more efficient than using regular payment methods like other payment gateways or credit cards. It’s not one of these secret standards that we heard about in the nineties.
Easy, low-cost deposits. Bitcoin has vast possibilities in regards to how banks can develop more transparency, efficiency and even make their services less costly.
Bitcoin has vast possibilities in regards to how banks can develop more transparency, efficiency and even make their services less costly. No risk of chargebacks. The cost of fraudulent transactions on credit cards is high as you have to uplift their full amount. With Bitcoin, the merchants aren’t required to ship goods after receiving Bitcoins which further reduces the chances for fraudulent charges.
Disadvantages of using Bitcoin in the finance industry?
Despite bitcoin’s benefits, there are plenty of disadvantages in using Bitcoin in fintech companies. Here are some of them:
Bitcoins are not recognized as legal tender in most countries and can therefore be treated as a commodity (like gold or silver) rather than a currency. This makes it risky for banks to let bitcoins into their systems since it is mainly used for illegal transactions and money laundering.
There has been a lot of volatility with the Bitcoin price. There have been periods where the price has increased by several hundred per cent, which is something that most e-commerce companies can’t afford.
There have been periods where the price has increased by several hundred per cent, which is something that most e-commerce companies can’t afford. There is a lack of anonymity when using Bitcoin for transactions. The blockchain is a public ledger that records every Bitcoin transaction. Your name and physical address will forever be associated with your account and any payments you make.
When using Bitcoin for transactions. The blockchain is a public ledger that records every Bitcoin transaction. Your name and physical address will forever be associated with your account and any payments you make. Tech companies don’t have to deal with the hassle of accepting bitcoins from their customers as they can simply accept PayPal or credit cards instead.
Final thoughts on why you should start considering bitcoin as a part of your company’s fintech strategy?
Bitcoins are still a very new concept, and a lot of people still don’t know about them. After all, it is a currency that was created seven years ago and hasn’t been around for as long as other major currencies. If you’re looking to get started with Bitcoin, I’d recommend setting up an account first. This way, you’ll be able to get familiar with the process of receiving Bitcoins, which will enable you to determine whether Bitcoin is really the best option for your company.