BitcoinStore is launching today and I think that it is the first sign of a change in the payments industry. PayPal was founded in 2000 and experience massive amounts of growth in the next 10 years, but the last three years have been tough on PayPal. Many developers, merchants, and customers have become fed up with PayPal and are now switching to alternatives, like Google Checkout, Stripe, or the one true alternative in my eyes: Bitcoin
Bitcoin has been experiencing massive growth. The price is high, morale is high, and we’ve never had more sites accepting Bitcoin… The big question now is convincing consumers to use it for their online transactions.
BitcoinStore does this. They are doing 0% markup on all their products. They are losing money on their site, all to show consumers (and potentially business owners) that Bitcoin really does save both the consumer and the merchant a lot of money. It is extremely efficient for business because there are no middlemen or chargebacks.
What BitcoinStore also does is intimidate the big boys with a little bit of healthy competition. If you want Amazon or Newegg to accept Bitcoin, the only way to get them to listen is by buying their products, for cheaper, on BitcoinStore. They would rather accept Bitcoin than lose any percentage of their user base.
We still need to provide the tools for consumers to use Bitcoin on their own. BitPay is helping business owners to accept Bitcoin, Coinbase is getting there in teaching consumers, and BitcoinStore is now providing the incentive to convince consumers and business owners to learn. Unless I’m missing a large part of the equation, Bitcoin has nowhere to go but up from here on.