Topic: [2014-08-15] For Merchants, Bitcoin Shows More Pop Than Potential (Read 1053 times)

Well for businesses accepting BTC it's definitely profitable. {Less transaction cost / No charge backs / Guaranteed payment / Possible higher income, if they convert to fiat, when the price is higher}

Now this is where 90% of these businesses fail to capitalize on it's potential ---> Making it attractive for the consumers to use BTC

They will have to offer discounts on products {In the first few months} to all customers, willing to pay with BTC {Word of mouth will spread and after a few months, discounts can be removed, and people would have adopted the currency.

What is happening now is, Merchants adopt BTC and the BTC community react to this, by supporting them, and buying things, they would not have bought anyways. After a while this gets less and no new BTC consumers come into the community, so the demand for BTC is reduced, and the over supply of BTC push the price down.

So adoption without incentives, kills the BTC currency.

If I walk into a shop and I want to buy a TV and the cashier tells me, I can get 15% discount, if I use BTC, I would consider using it. Now I walk to the store and they tell me nothing, and I buy it with credit card or debit card or cash.

Why would anyone, want to go search for a BTC ATM and then go through all that trouble, to pay for something, that they could pay with credit card etc?

More pop than potential? What the hell does that mean? I don't get how it even fits in with the article?

http://dealbook.nytimes.com/2014/08/14/for-merchants-bitcoin-shows-more-pop-than-potential/?_php=true&_type=blogs&_r=0

Jason Hand had more money in his Bitcoin wallet than in his savings account.

So when he wanted a white linen suit for a vacation trip to Panama, he turned to Overstock.com, a discount retailer that accepted the virtual currency. The suit he selected cost about $100 — or a little more than a tenth of a Bitcoin.