The Pros and Cons of Bitcoin: a Merchant’s View

William Coates is an entrepreneur and self-confessed ‘technician nerd’ with a background in software development. Presently based in Helsinki, he’s CEO of Digital Tunes– an online music shop which started accepting bitcoin early last year. Here, Coates tells of his encounters using the cryptocurrency and if you ought to take your company right down precisely the exact same route.

We start accepting bitcoin at digital-tunes. Net at the start of 2013, and thus far it’s been an overwhelmingly positive experience. Bitcoin is currently our third most significant payment provider by revenue, following credit cards and Paypal, and before ofClickAndBuy and Skrill (formerly MoneyBookers).

Within the previous six months, 2% of our sales came through bitcoin tumbler , and also on a good month that the digital money can account for up to 4 percent of our overall sales.

To be honest that is much, much more earnings than we believed we’d see with the cryptocurrency. At the start of 2013, and still to some extent now, the frequent understanding is that people just use bitcoins to purchase drugs online.

We have discovered that this is clearly far from the truth — there’s a growing and lively community of consumers from all across the world that wish to exchange their own bitcoins for all sort of things.

Throughout the previous year, we’ve discovered a few important pros and cons with accepting bitcoin payments and have now made them the cornerstone of the article. If your business is considering accepting bitcoin for your very first time, we hope you are able to learn from our experiences.

The good things

Zero fraud

Fraud is presently a huge headache when accepting payments online. Chargebacks not only result in loss of earnings, but also anincredible amount of additional administrative work.

This can be immensely frustrating for us: once we get chargebacks from non-European charge cards, we wind up footing the bill — our credit-card chip does not cover us.

The attractiveness of bitcoin is the fraud was left an impossibility: because of the character of this bitcoin protocol, alltransaction are permanent. When you get paid, you get paid off. This is not some short-term specific offer or sleight of hand, this is baked into the code in the heart of the digital money.

That is fantastic, since it means the obligation for combatting fraud isn’t shouldered by the retailer, but rather lies with the bitcoin pockets — that the ‘banks’, if you will, of digital monies.