Ever heard about blockchain? Chances are that this term is really unfamiliar to you. Now, if we tell you Bitcoin, does it ring a bell? Bitcoin is, before anything, a groundbreaking and disruptive technology. It is a decentralized and distributed ledger technology where transactions happening world wide are written in a totally transparent, immutable and secure way.
How is Bitcoin created and why does it have value?
- Contrary to centralized-issued currencies like the US Dollar, Bitcoin has a controlled, decentralized and previsible issuance mechanism with a strictly fixed supply (only 21,000,000 Bitcoins will ever be created) that will never change in its lifetime. The whole transaction ledger (the blockchain) relies on a validation system called Proof of Work.
It is the process of running highly complex computerized calculations in order to authenticate and timestamp groups (also called “blocks”) of transactions in the ledger, which will then be broadcasted as a new version of the transaction ledger to the entire Bitcoin network, which will make the ledger “distributed” and “decentralised”. This process is called “Mining” and occurs every 10 minutes on average. This very process is and will forever be the only way to create Bitcoin.
As mining requires some energy (we’re talking about ultra powerful computers and servers running calculations 24/7/365), the code will automatically distribute rewards (called “block reward”) to entities (called “Miners”) that contribute to the functioning of the blockchain network by giving them some Bitcoins. As of today, the block reward is 6.25 Bitcoins and the block reward is divided by 2 every four years approximately.
Today, the only reason why fiat currencies like the Dollar, Euro, British Pound have value is because there is a wide consensus about the fact that these currencies have value. Trust is what gives value to an asset or a currency.
2. Today, Bitcoin is valuable because a lot of people agree on the fact that it has value (US$10,800 per Bitcoin as of the time of the writing of this article) as it becomes globally accepted as a means of payment, but also as a store of value like gold. The limited supply of Bitcoin also ensures the increase of its value overtime, in contrast with currencies like the Dollar, Euro, Pound, etc. which have an unlimited supply and, therefore, lose its value overtime. ($1 in 1971 is worth $6.40 today).
Is Bitcoin used for money laundering? Is it safe to use it?
- Well, can you verify who previously owned the $50 bill that your customer just gave you? Can you even know what that $50 was used for before that customer gave it to you? Absolutely not, and you will never ever be able to do so. On the other hand, Bitcoin, and its underlying technology called Blockchain, is an open transaction registry that anyone can audit at any time, and retrace every single transaction that occurred between users with that specific Bitcoin you just received from your customer.
This means that for some of these Bitcoins, you can retrace every single transaction that was made since 2009 (creation date of the Bitcoin protocol by Satoshi Nakamoto) with the cryptocurrency you are holding. From a money laundering point of view, cash (and more recently discovered regular banking systems: “Documents involving about $2tn of transactions have revealed how some of the world’s biggest banks have allowed criminals to move dirty money around the world”, source BBC) is way better.
Currently, the main default of Blockchain and cryptocurrencies like Bitcoin is that it’s before everything a complex technology that can be difficult to understand, such as the Internet and emails back in the 1980s. Luckily, a tremendous amount of work has been done in the past years in order to create Paytek Crypto, an intuitive, secure and easy to use user interfaces which is giving a huge boost to mass adoption of the Blockchain technology and cryptocurrencies and the ability for business owners to accept cryptocurrencies in their business.
Furthermore, regulation around the world is being implemented in order to simplify the usage and the custody of cryptocurrencies for individuals and businesses like this recent news from Forbes shows: Bitcoin Meets Banking As U.S. Bank Regulator Permits Cryptocurrency Custody.
How can my business benefit from accepting cryptocurrencies as a means of payment?
With the widespread use of cryptocurrency worldwide as a new transparent, efficient, fast and secure means of payment, more merchants are starting to accept cryptocurrencies as a payment method in their business. To answer to this ever increasing demand, Paytek has partnered with NetCents in order to provide you with the most secure and reliable cryptocurrency payment solution for all-size Canadian businesses.
NetCents, the transactional hub for all cryptocurrency payments, equips forward-thinking business with the technology to seamlessly integrate cryptocurrency payments into their business without taking on the risk or volatility of the crypto market.
Accepting cryptocurrencies offers multiple benefits to your business
- Offer multiple cryptocurrencies alongside your traditional payment methods
- Easy integration and deployment
- Reduced processing costs and cross-border transactions
- Ability to enable refunds
- Accept cryptocurrency payments from any eWallet
- Accept cryptocurrency payments online, in-store and via invoice
- A new, untapped revenue stream
Integrate it seamlessly with your business
We believe that accepting cryptocurrencies as a payment method should be as easy as getting a new payment terminal for your business, that is why we worked on implementing our solution with multiple supports such as payment terminals (Clover, Poynt, Ingenico), iOS and Android apps, major eCommerce platforms like Hosted Payments, WOO Commerce, Magento PrestaShop, OpenCart, Virtuemart, and Shopware.
