Consumer Demand Of Bitcoin In Q4 2016
The bitcoin has gained lots of appreciation since the anonymous inventor introduced it in 2009. The users can send these currencies quickly and cheaply across the internet without using the costly intermediaries. There were more than $ 1.1 billion in venture capital funding had flowed into the startups of Bitcoin and Blockchain by the end of Q1 2016.
The bitcoin (BTC) still remains little more than a source of gossips and controversy for the French journalists even after eight years of its creation.
It is understandable in lots of ways and the business of mainstream business has become an exceptional difficulty for new people to penetrate. The consumer payment behaviors are changing slowly. Despite years of digital alternatives, the checks and cash consists of nearly a one-third of the global consumer payment volume.
A classic chick and egg dilemma has faced by the market when new market technologies enter the market. The customers will not try a new service if there aren’t too many places to use it, whereas it will not be accepted by the merchants unless it has a good share of consumers prefer it.
Report card of Bitcoin
There are three areas through which the mainstream adoption of a new payment method can happen, which are making transactions easier or faster, offering richer loyalty discounts or rewards and improvement in the security for the consumers.
Credit cards have reached mass adoption by being easier and faster than obtaining cash while enticing the consumer with cash back bonuses and merchant offers.
Bitcoin is a greater option for the merchants as there will no need for them to deal with the fraudulent transactions.
In short, the design of the Bitcoin is a complete failure across all the other adoption mechanisms, especially from the standpoint of the consumers. This is the main reason why crypto nerds and early adopters are fascinated with this underlying technology.