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Bitcoin accepted by retailers but consumer still slow in acceptance

Bitcoin has become very popular with merchants who find the cost efficiency and ease of accepting Bitcoin, according to Financial Review Magazine online today.

Bitcoin Conference Held In New York City
Photo by Andrew Burton/Getty Images

Major online retailer, such as, Overstock.com, Dell, Expedia accept it. EBay’s PayPal is talking with Coinbase as a service provider of merchant services.

What has been the reason for a slower usage from the consumer with Bitcoin? While retailers have seen the benefits, the customer has not had significant benefit from using bitcoin as a payment method. It is a cyber currency that transfers across geographical borders. Benjamin Lawsky, Superintendent of the New York Financial Services Dept. found that people working in New York City found it a cost benefit to send it to relatives in other countries since wire services were very expensive.

Steven Englander, a research analyst with Citgroup calls it great publicity for the retailer and you are viewed as “edgy.”

If a deal could be finalized with Ebay it boosts the cryptocurrency and PayPal’s mobile presence.

A deal would be an endorsement for a crypto currency, which is gaining acceptance with a slowly growing number of businesses, including online retailer Overstock.com. But some industry executives have warned about the risks of an unregulated currency.

Wikipedia announced in July that it was accepting Bitcoin. To help promote Bitcoin, Blockchain announced earlier this month that it has reached 2 million wallet holders. Moving bitcoin out of the wallet to buying is an important show of support.

US online retailer Overstock is doing that and now has an average of $15,000 worth of goods for bitcoin every day, according to its CEO Patrick Byrne. In an interview reported by Reuters, Byrne stated that he expects bitcoin sales of $6 million to $8 million this year. Year-to-date Overstock has had cumulative sales passing the $2 million mark. His forecast for bitcoin payment in sales is $1 million per month by year end.

Byrne states that Overstock is in with Bitcoin for the long haul and forecast 4 cents in bitcoin of the forecasted sales average of 70- 80 cent range of sales this year. Byrne has told Business Insider that he is approached at conferences by Bitcoin supporters who buy at Overstock with bitcoin payment. Due to this show of support, Byrne has announced that Overstock will donate 3 percent of its bitcoin sales profits to organizations that promote bitcoin.

DISH announced yesterday that it would be accepting bitcoin for monthly service payments. DISH which earns 13.9 million dollars a year in revenue is the second largest business to accept bitcoin in payment for services. Dell is the largest business to accept bitcoin.