Monday, July 15, 2019

The Effect Of BTC Gift Cards On Bitcoin Adoption

A lot has been said concerning what the crypto industry is expected to achieve in the year 2019. In some quarters, it is believed that the adoption of cryptocurrency by the mainstream will finally happen before the end of the year. Some companies, like prominent financial market giant Fidelity, has taken steps to get more American citizens interested in the new way to buy.

The Confusing Aspect Of Crypto Purchase

Generally, buying cryptocurrency like Bitcoin goes through a process which the average U.S. consumer may find intimidating and cumbersome. There is no set standard; a dozen exchanges exist that allow crypto transactions, and the price from one to the next can vary by up to 10 percent. Also, how cryptocurrency works is often accompanied by questions which leads to more confusion for a lot of people. It is a fact that just 7 percent of consumers own Bitcoin.

Ed Grieske, Bitcoin Solutions CEO, said: “connecting your bank account to an unknown exchange to buy bitcoin can be frightening and risky.”

Bitcoin Solutions, a firm based in Canada, has created a new solution for this. The concept is for people to store Bitcoins gift cards in digital wallets safely and to spend them wherever the digital asset is accepted. That is one option. Another is for the Bitcoin to serve as an investment for investors who will later sell them when the market becomes more profitable.

Cryptocurrencies such as Bitcoin and Ethereum do not make use of traditional financial institutions like banks to trade; instead, they make use of blockchain technology. The technology also finds utility in micro transactions, smart contracts, as well as a host of other services. Cryptocurrencies, specifically Bitcoin, have at some point reached unimaginable heights. For instance, Bitcoin displayed its great potential when it surged to $20,000, its current all-time high, at the end of 2017.

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Gift Cards

Grieske predicted that in time to come, Bitcoin gift cards would find their way into traditional retailers such as stores and e-commerce sites like Amazon.

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According to Grieske, the target is to eliminate discomfort in the whole Bitcoin process and to make it a more pleasant experience for those who are still trying to figure out how digital assets work. In his words, he said:

“They’re familiar with how [the gift card industry] operates. It’s a comfort level. This was a perfect way to segue bitcoin into the standard retail environment.”

He went on to add that “It’s not designed for the big investor. We’re looking at the 90-plus percent that wants a little bit — $50, $100 or $200.”

Adedamola Bada
I'm Damola, a computer engineer from Obafemi Awolowo University. A crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through hard work and positive contribution to the organization that aspires for excellence. Contact me on [email protected]

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