Bitcoin Use Increasing Significantly - Essay Example

According to companies, shoppers who make payments in Bitcoin are bigger spenders on average.

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Majority of Overstock’s American Bitcoin customers are male and they spend on $240 per order on average. This is about 35% more what other customers would spend.

Mary Fons joined the Bitcoin Economy few months ago. She buys office supplies and gift cards with the crypto currency. Fons co-hosts the “Love of Quilting” shows on public television in New York.

She likes that she has the added option of paying with Bitcoins.

People from all around the world have opened total 41 million Bitcoin accounts, the Bank of England revealed. Analyst at Wedbush Securities Inc. Gil Luria thinks that the global spending on products and services has doubled.

People of all kind are accepting the change. Even parents want their children to learn to be digital citizens and so give allowances in bitcoins. Those who smoke marijuana can buy buds from the bitcoin-enabled vending machines.

A huge number of people in emerging markets like Brazil and Russia are using the digital currency as a shield against currency volatility.

Bitcoin is the most popular kind of digital currency. It was created in 2008 by pseudonymous creator Satoshi Nakamoto. The crypto currency has no central administrator.

A group of volunteer computers validate transactions using encrypted electronic signatures. Supporter thinks Bitcoin can replace money in the future. However, there are some hurdles that it must overcome first.

Major concerns include issues with security and price volatility, which need to be sorted before people can trust Bitcoin completely.

At first, only eager investors looking to make profit from the currency showed interest in Bitcoin but now people of different type and profession are accepting Bitcoin as a method of payment.

A researcher at University College London, Lui Smyth, conducted surveys last year and this year. The results demonstrate clearly that Bitcoin has attracted a more mainstream demographic now.

Smyth mentioned in an interview that the spread of users is a sign that bitcoin is becoming mainstream.

There are 3 main factors that attract more users towards this digital currency: less volatility, availability of new apps and digital wallets and acceptance by mainstream companies.

Availability of apps and wallets make using the currency much easier for the users. Finally, as more than 75000 companies accept the digital currency people have options.

On the first day that Overstock.com began accepting bitcoin, their sales peaked at $120000. When Expedia started accepting bitcoins for hotel stays, it was seen that travelers started booking fancier hotels.

Bitcoin is also becoming popular outside the United States. Using the digital currency to buy products and services is even more popular in Europe, according to CEO of Atlanta based BitPay, Tony Gallippi.

Many people are buying expensive things too with their bitcoins. This includes plane tickets, islands, real estate, etc.

The increasing use of Bitcoin shows great potential for the future of the crypto currency.