Britain keeps the penny but micropayments might promote crypto adoption

bhabygrim

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Quote from: James_CRYPTOSTAR.MONEY on May 03, 2019, 04:46:09 AM

This article argues that clever pricing strategies and the ability to cut transaction fees payments less than $1 may help speed the adoption of cryptocurrencies.

https://cryptostar.money/blog/britain-is-keeping-the-penny-lessons-for-crypto-marketing-teams/

--- update 15:33 ---

Great points Beerwizard and Stompix below.

When using crypto the buyer pays the transaction fee. Cash is cheaper for them unless they get a discount.
Merchants using Lightning Network might have to close their channel each night to keep their books in order.

Why would people bother using Bitcoin if they would also be charge with fee on each transaction?
Not to mention that there is also a tax on the receipt from the merchant .
So I guess people wouldn't really use Bitcoin as a currency to pay for anything unless the cost for transaction fee would be zero.

Genemind

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People would massively adopt cryptocurrency and use platforms like LN only if there would be cheaper fees or even free services with faster transactions. Cash at some point is cheaper since it isn't volatile but crypto coins would always be more convenient.

traderethereum

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Quote from: xvids on May 04, 2019, 03:16:42 PM

Actually it isn't just the transaction fee that is stopping people from using it as a payment option.
Just like what you can see on this thread people prefer to use cash rather than crypto.
They see's it as an investment and doesn't want to use it as a payment option .
Given the fact that if we use our local wallet we wouldn't have to pay for transaction fee and we would have some cash back or discount they wouldn't use it,
They prefer to pay on hand rather than using the wallet.

That is because we were still difficult to find a local store or online store which accept bitcoin for the payment and that makes people prefer to pay using cash.
But for people who lived in a country which accept bitcoin or crypto, they will prefer to use crypto than cash because they don't have to pay more fee's to buy something.
I think people now don't overthink about the fee because I think they realize that there is a fee that will include in the transaction and they don't mind to accept the transaction.

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The only thing that can help push Bitcoin adoption upwards is the volatility factor going down and governments regulating the market in an effective manner along with a fully developed LN which can process super fast transactions and which would require minimal fees.

This is the bottom line when it comes to small or big payments in any part of the world.

fiulpro

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Other than that if the cost of converting the Bitcoins from the lightning network , to the normal Bitcoin network is low too then it will for sure be beneficial , because sometimes if you have 7$ after selling and transferring 5$ is all you get in the end ,this is a major drawback when we can just swipe the cards and pay nothing.
This is the only reason why the other forms of payments are preferably done over the cryptocurrency ones.
I hope this gets implemented

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Quote from: romero121 on May 05, 2019, 01:26:23 AM

People have a statement that bitcoin is lacking in its promotion part, to my understanding as it is decentralized no authority take responsibility of promotion. These day the service renders accepting bitcoin have been making their involvement into promoting of bitcoin. One main problem with promoting is the sudden increase in the userbase which will get the governments have an eye over the market. At times this might serve as a problem for growth of bitcoin.

Yes, there is no authoritiy that is responsible for promotion and there will be no any. But users themselves and different unformal organizations that garher bitcoiners and other cryptocurrency supporters should take more care of it.
Of course that governments will not promote Bitcoin because majority of them still haven't rekognized and regulated it.

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People have a statement that bitcoin is lacking in its promotion part, to my understanding as it is decentralized no authority take responsibility of promotion. These day the service renders accepting bitcoin have been making their involvement into promoting of bitcoin. One main problem with promoting is the sudden increase in the userbase which will get the governments have an eye over the market. At times this might serve as a problem for growth of bitcoin.

Herbert2020

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the thing about fees is that with the technologies that so far were created on top of blockchain technology there is no way to not have it, then the only thing to consider is how to keep it low while still keeping the decentralized nature of the cryptocurrency because that is the whole point of a cryptocurrency and if we make it centralized then there is no point in switching from the old centralized payment systems such as banks, credit cards, online wallets like paypal,... to a centralized cryptocurrency!

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Quote

When using crypto the buyer pays the transaction fee. Cash is cheaper for them unless they get a discount.

It's a different story when we are using our local wallet when paying. We actually get incentives, discount, cash-back whenever we use bitcoin (not necessarily bitcoin as long it's our local wallet which has fiat, eth, bch, xrp, btc). That is why I sometimes opt to pay via bitcoin for convenience and discount than paying via fiat.

This is what I like the most about how our local wallet is promoting cryptocurrency indirectly to the mass. Introducing it's convenience by letting them save time paying their bills or shopping.

xvids

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Actually it isn't just the transaction fee that is stopping people from using it as a payment option.
Just like what you can see on this thread people prefer to use cash rather than crypto.
They see's it as an investment and doesn't want to use it as a payment option .
Given the fact that if we use our local wallet we wouldn't have to pay for transaction fee and we would have some cash back or discount they wouldn't use it,
They prefer to pay on hand rather than using the wallet.

buwaytress

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Just want to add that in commerce and trade, everything is priced in. Ten years ago, merchants and even consumers back in my region had to pay extra costs just for using debit card payments (in fact, this "convenience" generally still comes at some cost for some things I do regularly. AirAsia still charges $5 or MYR 10 for using an instant, non-reversible online cash payment, some online services where I live now charge EUR 0.25 for the same.

But use a credit card (that's actually reversible!) and it's free.

But dig deeper, and you see that fees may be 0 now for most things, but the cost is just transferred elsewhere. Service charges, higher retail price, inflation, etc.

The British penny is actually still pretty powerful btw. Countless other countries have no more use for their smallest denomination.

jademaxsuy

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ENGLAND has known already on the adaptation of cryptocurrency and even created a lot of projects in the form of ICO. I have witness some had failed and some had succeeded but this is not my point. My point is that the people living in England are open minded with cryptocurency.

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Quote from: okala on May 03, 2019, 07:26:55 AM

Until full implementation and operations of the bitcoin lightening network bitcoin is not suitable for micropayment this is because it transactions fee will Otway the amount for payment, so there is a greater need for development in the bitcoin network before we can see full adoption.

Lightning network is definitely a must in order for bitcoin to be globally adopted but that's not going to help bitcoin become more popular alone. Transactions fees and confirmation time are a problem right now but I don't think that's really the reason why many merchants are not accepting bitcoin as a payment method. In my opinion the problem is that bitcoin is not yet '' legalized '' as a currency in most countries so merchants don't want to accept it because of legal reasons.

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Quote from: Bitinity on May 03, 2019, 06:59:36 AM

When are talking about micropayment, I do not think that bitcoin is suitable for micropayment due to its transaction fees. Indeed there is Lighting Network to avoid the high fee of the transactions. I do believe micropayment is suitable for coins with low transaction fee only like what is being discussed on the linked article by OP.

Normal micropayments via BTC are simply a big NO, even LN has some limitations for merchants if they want to abide by the law

When you pay in cash for example, you give the banknotes, the merchant can use them to pay its suppliers there is no tax.

When you pay via a card the merchant pays a fee for the transaction, the money is entering his bank account he can use that money to pay its suppliers directly, usually banking fees for small business are very cheap.

Now, with normal BTC tx there is a small problem. When you pay with BTC you make those payments to a unique address and in order to collect the money usually the merchant or the 3rd party has to create another batch transaction (another fee), and if his supplier isn't accepting BTC he must make another one to an exchange, pay a fee for converting, pay a fee for withdraw, pay a bank wire to finally pay....

In the case of LN and in the best case scenario with a partner that accepts LN transactions he will be limited only when closing a channel, and that he will need to do every day in order to keep his papers in order, so again, there will be an extra fee he has to pay way better than on chain tx and maybe rivaling cc but still a not that cheap in every scenario.

vv181

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Do we really need some kind of promotion while the technologies aren't matured yet? I don't think so it is necessary, just look back a few years ago Bitcoin could be this big without any kind of 'official' promotion. Instead, we really should the support Bitcoin code ecosystem to be matured, and all of those services, merchants, and all of the things that contain Bitcoin being user-friendly as it can yet also maintain the goal of Bitcoin(decentralization and etc).

okala

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Until full implementation and operations of the bitcoin lightening network bitcoin is not suitable for micropayment this is because it transactions fee will Otway the amount for payment, so there is a greater need for development in the bitcoin network before we can see full adoption.

Beerwizzard

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Quote from: James_CRYPTOSTAR.MONEY on May 03, 2019, 04:46:09 AM

This article argues that clever pricing strategies and the ability to current transaction fees payments less than $1 may help speed the adoption of cryptocurrencies.

All those crypto transaction fees are still much bigger than 0 fees that we pay when we give some cash for our purchases at the local grocery. From this point of view any fee decrease is not pushing the adoption.

Quote from: CryptoBry on May 03, 2019, 06:41:39 AM

The marketing side in Bitcoin is something that is really lacking. This is in my opinion a big disadvantage for a decentralized platform. As in anything, there is a need for a marketing strategies. On this matter, there must be an effective and less costly way for people to spend Bitcoin on products and service below $1. This can be helping towards more Bitcoin adoption everywhere. And of course, can push for more merchants to join the Bitcoin bandwagon.

If benefits of using some particular payment methods are so small that you have to promote them aggressively then you are using a bad payment sustem. Same thing is appliable to cryptocurrencies.

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Quote from: CryptoBry on May 03, 2019, 06:41:39 AM

The marketing side in Bitcoin is something that is really lacking. This is in my opinion a big disadvantage for a decentralized platform. As in anything, there is a need for a marketing strategies. On this matter, there must be an effective and less costly way for people to spend Bitcoin on products and service below $1. This can be helping towards more Bitcoin adoption everywhere. And of course, can push for more merchants to join the Bitcoin bandwagon.

When are talking about micropayment, I do not think that bitcoin is suitable for micropayment due to its transaction fees. Indeed there is Lighting Network to avoid the high fee of the transactions. I do believe micropayment is suitable for coins with low transaction fee only like what is being discussed on the linked article by OP.
Of course there will be still some pros and cons to use crypto for micropayment purpose especially about the pricing as it will be always changing due to the volatility of crypto. It wont be effective to use crypto for pricing, so the best way for merchants that accepts crypto is keep on using Fiat for the pricing and they should have an automatic system to convert it into crypto based on the latest price.

CryptoBry

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The marketing side in Bitcoin is something that is really lacking. This is in my opinion a big disadvantage for a decentralized platform. As in anything, there is a need for a marketing strategies. On this matter, there must be an effective and less costly way for people to spend Bitcoin on products and service below $1. This can be helping towards more Bitcoin adoption everywhere. And of course, can push for more merchants to join the Bitcoin bandwagon.

James_CRYPTOSTAR.MONEY

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This article argues that clever pricing strategies and the ability to cut transaction fees payments less than $1 may help speed the adoption of cryptocurrencies.

https://cryptostar.money/blog/britain-is-keeping-the-penny-lessons-for-crypto-marketing-teams/

--- update 15:33 ---

Great points Beerwizard and Stompix below.

When using crypto the buyer pays the transaction fee. Cash is cheaper for them unless they get a discount.
Merchants using Lightning Network might have to close their channel each night to keep their books in order.

Topic: Britain keeps the penny but micropayments might promote crypto adoption (Read 241 times)