Bitcoin is an emerging form of currency that has been surfacing in the kratom industry.
It is a form of cryptocurrency (virtual currency) and payment system created in 2008.
The Winklevoss twins, most famously noted in Facebook the movie as the initial creators of the platform who sued Mark Zuckerberg for stealing their idea, are staunch advocates of the online currency.
“Our basic thesis for bitcoin is that it is better than gold,” says Tyler, explaining that when compared with the nine foundational traits that make gold valuable, such as scarcity, durability and portability, “bitcoin matches or beats gold across the board”. – Financial Times
On the other hand, if you’ve heard about it in the news, it has been known somewhat for its unpredictability in the market often fluctuating in value at the drop of a dime.
Yet, why is it being offered as a trusted source of payment in online companies across the United States?
It is discreet. The customer and e-commerce vendor have a direct transaction where the customer’s identity remains anonymous while the transaction is recorded. If you place a high value on privacy on anonymity and cutting the middle man, then Bitcoin is your choice.
It can be cheaper for customers. Vendors often give discounts of 10-20% to customers using Bitcoin. Reason being, it requires no transaction fees which saves them money. Unlike the 2-3% credit card processing fee, bitcoin transactions either carry extremely low fees or none at all because there is no intermediary assisting the transaction. Not only that, the money exchange is almost instantaneous compared to bank transfers that take hours or days at a hand.
It is easy to set up and use. If you’re not tech-savvy, no worries, there are simple applications to make the exchange seamless. Wallets, also known as Bitcoin bank accounts, can be used by tying your debit or credit card to the account and changing your currency exchange option to bitcoin. Then, buy the bitcoins you need and make your purchase. Voila!
It can be volatile. Bitcoin prices are similar to stock market shares, it can unpredictably rise or fall in a short period of time. That being said, one can avoid the pitfall of value fluctuation by simply buying only the Bitcoins that you need for the purchase. Never store your Bitcoins or create savings with them, unless you’re willing to live with the possibility that it will rise and fall at any given time.
Refunds can only be issued by the party receiving money. In this case, that means you should only do business with reputable vendors (of which you should be doing anyways). Reputable companies will have no problem with this.
Many kratom vendors have become quick adopters of Bitcoin because it bypasses the 3rd party of credit card companies. There are two main reasons that this makes it easier.
A) Credit card companies have been and still are very hesitant about kratom purchases. Given the dubious nature of the industry’s early years, kratom’s wavering legality issues had an undeniable negative impact on vendors’ relationships with credit card processing companies. As a result, many vendors totally avoided such payment methods or went to off-shore credit card merchants.
B) Lack of transaction fees beginning at 2-3% at least, often even 10-20% for off-shore merchants. Meaning, a significant amount of profit would be lost if vendors were to use credit card merchants.
Whether or not Bitcoin becomes the future, only time will tell. One thing is for certain, it is constantly evolving and business are changing along with it. Inevitably, as technology progresses there is less of a middle man needed. Think of Uber, Netflix, and AirBnB. The exchange of money and services has taken the form of a direct relationship between the consumer and person providing the service. Bitcoin is the embodiment of this.
While Bitcoin is not the main form of payment just yet and there are no guarantees in the world of technology, it might be useful to get acquainted with it sooner rather than later because what it represents is surely not going away.