Bitcoin, a digital currency invented 5 years ago, is going mainstream with Overstock.com’s announcement they will accept the tender by mid-2014. Here’s what you need to know to take advantage of the trend.
- Bitcoin is an electronic currency that uses cryptography to enable secure transactions. It is not backed by a government.
- This month Zynga (owners of FarmVille) and Overstock.com both announced they will honor the currency soon.
- The number of businesses accepting Bitcoin tripled in the month of December 2013. Bond, a New York City real estate brokerage, is just one of the recent converts.
- Bitcoin is attractive to merchants because it lets them avoid credit card fees, saving 3%+ per transaction.
- The currency helps companies reach new target markets. Consumers with Bitcoin are passionate about supporting businesses that accept it.
- Bitcoin is being taken seriously by the financial sector. Bank of America Merrill Lynch just released a research report on the currency and Wall Street firms are advertising for Bitcoin traders.
- There are over 12 million Bitcoin in circulation with a market value of almost $9 billion.
- There are still some wrinkles to be resolved. The value of Bitcoin can fluctuate widely and quickly. Governments are still deciding how to regulate and tax it. Detractors say these factors will lead to Bitcoin’s decline. Supporters say those issues will be resolved as the currency spreads.
What are the implications for your business?
- Do you have a plan to keep up-to-speed with Bitcoin developments over the coming months? (Hint: Read Brandology’s Digital American)
- What advantages would your business gain from accepting Bitcoin?
For help developing powerful marketing strategies that drive results, strategic plans that deliver growth, or new products that consumers love, contact Brandology at 925-417-2253 or Maura@Brandology.com.
Sources: Bloomberg 2013, Marketwatch.com 2014, Motherboard 2014, TechCrunch 2014