The Future of Bitcoin and Cryptocurrency

Bitcoins are a new currency created in 2009. They allow for transactions to take place without the middle man (no banks). In addition, there are no transaction fees and giving a real name is not required. Bitcoins even make international payments simple, since they are not tied to any specific country or subject to regulation.

Another reason Bitcoin and other cryptocurrencies are so popular is that it is nearly impossible to counterfeit, since each transfer is encrypted by a complicated code system. Consumers are increasingly using Bitcoin because they allow them to make purchases anonymously. Some small businesses have come to like them because there are no credit card fees involved. Others purchase Bitcoins as an investment, hoping that their value will increase in the future.

Where will They Go from Here?

There’s still a long way to go before Bitcoin or any other cryptocurrency is recognized by state government as a preferred mode of currency. Only a few months ago, Bitcoin experienced a 35% fluctuation in price range following a proposed exchange trade-fund (by the Winklevoss Bitcoin Trust) being denied by the U.S. Securities and Exchange Commission. The concern was that the currency could easily be used for illegal purposes.

Even so, experts are saying that 2017 will be a good year for alternative currencies. While Bitcoin experienced a drop in its prices, a cheaper cryptocurrency, Ether, reached an all-time high of $40 a unit. In addition, Bitcoin has officially been accepted in the educational industry. The University of Ohio – and several other colleges – now hosts classes about Bitcoin and other cryptocurrencies as part of its MFE curriculum. More and more companies are also considering Bitcoin as a genuine investment opportunity. All of these changes are pushing cryptocurrency closer to being recognized as mainstream.

Although Bitcoin is still a niche market, approximately 80,000 merchants (majority are ecommerce merchants) accept this digital currency payment worldwide. This number continues to climb. Bitcoin specialty processors Coinbase and Bitpay Inc. confirm this merchant approval of Bitcoin. According to them, “The average Bitcoin sale is about $400, more than four times the typical bank credit card purchase of $90”.

Merchant Services for Bitcoin

Finding payment processing solutions for Bitcoin is becoming easier, thanks to alternative processors like eMerchantBroker. EMB offers merchants safe processing options through its bitcoin merchant account. This account can be setup in as little as 24 hours, and provides merchants with business funding options and chargeback protection programs. While it may be some time before Bitcoin becomes mainstream, this option allows merchants to safely process these payments in the meantime.