How Has Bitcoin Influenced eCommerce - a Retrospective

The world we live in is becoming more digital by the minute. Obsession with Snapchat and Pokémon GO has only proven that not even the physical world suffices any longer and that in order for people to stay interested in it, digitalization is more than necessary. Another perfect example of this is eCommerce which everyone agrees to be a more convenient method of doing business. Although this phenomenon exists for quite some time now, there was always something missing to help unleash its full potential. This is something that appears to be the right cryptocurrency. Speaking of which, bitcoin may just be the answer to this question.

Why Bitcoin

Economy 101 teaches us that in order for an economy to be stable, the amount of money in circulation should always match the value of the goods that exist in certain environment. This is the only situation where there is no inflation, meaning that money doesn’t lose its value over time. Unfortunately, in contemporary ecommerce you are not required to pay only for the good that you are purchasing, but for the transaction fee as well. In other words, these fees are what causes the online inflation. On the other hand, bitcoin allows people to transfer money without having to pay anything for transaction, which makes it quite stable as a currency.

More Choice

One of the most important tasks of every decent e-store is giving its visitors freedom to choose their payment method. Imposing one or two gateways on people is more likely to scare them away than to decide to pay in a way that you find most convenient. Having various alternative payment gateways allows people to pay any way they want to (this includes bitcoin), increases the number of conversions by a great deal. This is yet another way in which bitcoin is shaping the world of ecommerce as we know it.

Greater Security

Even though people will always be suspicious of online hoaxes and scams, in reality, trading with bitcoin is much safer than any other kind of monetary transaction. First, you need a bitcoin wallet and here your choice is quite wide. Every wallet has its unique address which is so randomized that it is impossible for anyone to guess or type it accidently. When you are supposed to receive money you just share this address with the other party and there you have it. Furthermore, only the owner of the wallet can transfer bitcoins to another wallet which is quite reassuring. By making trading online safer, this particular cryptocurrency encourages more people to get involved in the eCommerce.

The Chicken or the Egg

Now, while it may appear that eCommerce is getting revolutionized by the bitcoin, it is hard to tell which of these two sides has more influence over the other. It is like trying to determine which came first, the chicken or the egg. Luckily, this is a riddle that never needs to be answered. All we need to know is that these two notions create a symbiosis which helps them both grow in significance. Some even go as far as to claim that bitcoin is in fact not money but something more. According to them, this is a one-way ticket back to the more sophisticated version of barter system. Needless to say, this is also the prediction about the future of eCommerce.

Conclusion

Be as it may, it is undeniable that internet helps shape a new world, one unlike anything we have ever seen. In this world, traditional ideas quickly evolve in order to adapt to the digital environment. From this perspective, it is only natural that this new advanced form of trade has a currency that can keep up. Through this mutual influence and cooperation, both bitcoin and eCommerce are creating the world of the future.

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