The world of Bitcoin is evolving rapidly, and it can sometimes be a bit difficult to keep track of all of the latest developments and updates.
Can Bitcoin be used for micropayment?
Credit card providers and payments platforms such as PayPal have traditionally defined a micropayment as a transaction that is valued at less than USD$5. However there has been some speculation that the Bitcoin currency could reshape our understanding of micro-payments. A Bitcoin unit is divisible into 100 million smaller units (called Satoshis). One scenario is that divisible Bitcoins could facilitate micropayment that are valued at less than USD$1, transforming content monetization on the internet, with some analysts putting the value of this market at USD$925bn.
Unfortunately it appears that we are some way off the Bitcoin monetization revolution as the economics of Bitcoin don’t enable stasis to be sent or transferred at an affordable price, with fees estimated to be at around 200 per cent of your actual payment. There is however quite a bit of research and development being invested to try and find ways to make Bitcoin micropayment a reality, so there is still some potential in this idea.
Hardware wallets boost perception of Bitcoin value
Different types of Bitcoin wallets have been developed that enable users to store your Bitcoin currency securely while still carrying them around for use in physical locations as well as using them for online transactions. In general, these new types of wallets include multi-signatory security, fingerprint recognition, and network connectivity. The wider value of these new types of wallets is that they increase trust and confidence in Bitcoin as a sustainable payments currency. You can even use a do it yourself hardware wallet to keep your Bitcoins safe.
Bitcoin moves into Point of Sale
One of the challenges that is currently preventing Bitcoin from becoming a sustainable currency or digital form of payment is increasing the number of people who wish to use Bitcoin to pay for transactions, and the number of suppliers who will accept Bitcoin for payment.