Some of the virtual currency's unique characteristics have proven attractive to some businesses. <\/p>\n
Bitcoin's broadest impact might happen outside payments, but some retailers are already finding value in accepting Bitcoin for goods and services. A panel of businesses that are taking Bitcoin payments discussed their experiences with the virtual currency at a Money2020 panel this month. <\/p>\n
Surprisingly, security was one of the biggest benefits of Bitcoin for two of the businesses represented on the panel: Amagi Metals, a trading site for precious metals, and Newegg, an online computer and electronics retailer. <\/p>\n
Typically, fraudsters want to use stolen credit card credentials to buy goods that can be a store of value (like gold, silver, or high-end electronics). Stephen Macaskill, Amagi's CEO, said his company is a constant target for fraudsters. \"We always have people trying to make orders with fraudulent credit cards. We have to have a whole department to make sure that all of our credit card transactions are legitimate, so it is expensive for us. We catch people on a weekly basis.\" <\/p>\n
Amagi was hit with chargebacks from fraudulent card transactions in 2012, and it started accepting Bitcoins that year. Thanks to the Bitcoin Blockchain, it doesn't have to worry about any chargebacks with its Bitcoin transactions. The Blockchain, a public ledger of all Bitcoin transactions, makes it impossible to counterfeit Bitcoins. Each transaction recorded in the Blockchain is verified by a third party. <\/p>\n
[For more on the Bitcoin Blockchain, check out: Banks, Bitcoin & the Blockchain] <\/p>\n
\"I don't see a way to end credit card fraud and we have the highest rate of credit card fraud in precious metals,\" Macaskill told the audience. \"With Bitcoin, we don't ever have to worry about chargebacks.\" <\/p>\n
Security might not be the first benefit that comes to mind when people think about Bitcoin, after incidents like Mt. Gox this year. But the Blockchain technology gives the virtual currency security as a payment mechanism, even if some of the Bitcoin exchanges have proven far less secure. <\/p>\n
Ted Rogers, chief strategy officer of Xapo, told Bank Systems & Technology that Bitcoin advocates need to provide a great deal of education about the security benefits of the Blockchain for payments. <\/p>\n
\"There's a security aspect that's partly educational. Our challenge is explaining why this technology is so secure,\" he said. \"It is easier to steal the Mona Lisa than to steal a Bitocin in a cold wallet.\" <\/p>\n
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Why Some Retailers Are Accepting Bitcoin<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Some of the virtual currency's unique characteristics have proven attractive to some businesses. Bitcoin's broadest impact might happen outside payments, but some retailers are already finding value in accepting Bitcoin for goods and services Continue reading