At the beginning, Bitcoin was a disorganized currency that users were able to transfer over the Internet without much regulation from the government. With its increasing popularity over the past few years, businesses have started to adopt the practice of Bitcoin currency throughout their Commerce stores.
In 2014’s first quarter, Bitcoin and cryptocurrency were trending so much that it became impossible to meet someone who didn’t hear about it. Bitcoin then, was valued at about $6.45 billion. During this time, Overstock.com became the first large e-commerce retailer to accept Bitcoin, yielding them $130,000 in revenue for their first 24 hours. With the help of Coinbase and a few other payment implementation companies, Fortune 500 companies like Dell, 1-800 Flowers and Newegg have been flocking the market in order to take advantage of the ultra secure proof systems and grab a piece of this new source of revenue. It is seen by some as risky move however, the revenue already generated does not lie.
Some believe that these companies are joining this payment system in order to connect further with their customers. Others believe that it helps them to save money and hassle. In the article “Dell Becomes the biggest e-retailer to accept Bitcoin“, Jaron Lukasiewicz, CEO of Coinsetter, believes that the reason is the reduction in chargeback fees, a cost that Bitcoin currency is exempt from because of their strict privacy and exchange policy.
What is important to remember about Bitcoin is that it is still relatively new, and certainly isn’t done developing. It will be interesting to see how the government will stick its foot in and start to regulate, and how this will change the overall landscape of online retail.