The last time I mentioned bitcoin in Right Clique was to tell you about CryptoLocker – an extortion type of malware that would encrypt your computer information and then require you to pay them a ransom to get it back. The ransom had to be paid in bitcoin. If you missed that article, click here to read it now.
What is bitcoin? It’s a digital currency that allows transactions to be performed without banks or any other middlemen. Transactions from consumer’s wallets are processed, verified and publicly recorded by so-called bitcoin enthusiasts. And, there aren’t any transaction fees.
Within the last six months bitcoin has been steadily making inroads to the mainstream. Stores like Overstock, Lord & Taylor, TigerDirect, Virgin Galactic and NewEgg all are now accepting the digital currency. Recently it was announced that Dish Network would be accepting bitcoins, so the future of this digital currency continues to look more promising.
Still not convinced? John Donahoe, CEO of eBay, stated that not only is bitcoin exciting, it’s also going to play an “important role” in the future of PayPal. Apple, who banned bitcoin wallet apps last year, is beginning to lighten up on the digital currency. Even Amazon, who claimed that it would steer clear of bitcoin, has recently been awarded a bitcoin-related cloud computing patent.
Why is this happening? Bitcoin offers several benefits that other currencies don’t:
- Makes conducting business overseas easier
- Avoids fees – no transaction charges for consumers or merchants
- Inspires innovation – because it is open source and not proprietary to any one company or industry group, it will continue to improve
Bitcoin isn’t the only digital currency available or that’s going to change how eCommerce works online in the future. There is Dogecoin, Litecoin, Ripple, Peercoin and Mastercoin that could all improve or fix the problems associated with bitcoin. With the growing popularity and interest in this field, transactions will become faster, more convenient, cheaper and more efficient. In short, it’s going to change banking and the financial system.