The peer to peer open source currency of Bitcoin has become an important currency in the retail world, in spite of not being centrally authorised. The NY Times reported that early Facebook investor and Silicon Valley capitalist, Jim Breyer sees a bright future for Bitcoin in a typical retail market. He feels digital currency, especially Bitcoin, has a utility value. It instantly transfers money, confirms the transaction and processes it with no cost whatsoever.
There should a technological innovation for this technology to be adopted in mainstream transactions. Merchants need to start the use of Bitcoin to reduce costs and to ensure there aren’t any frauds. According to Mr. Allaire, the advantage of using Bitcoin is that you get a discount when you use Bitcoin in some of the transactions. This gives an opportunity for increased profit margins. Merchants promote it due to instant processing and due to the fact that they reduce fraudulent transactions.
He also stated that the discounts, the rewards and the diminished fraudulent transactions will promote the use of Bitcoin. As far as the consumers go, there are too many advantages that they can benefit from the use of Bitcoin.
Most important of those is that it provides consumers the security and privacy they need. In a credit or debit card transaction, you usually give out personal information and certain bank account details to a third party. The transactions using credit/debit cards are also vulnerable to identity theft and fraudulent transactions.
Unfortunately, Bitcoin were earlier used for shady transactions and has had dodgy experiences with the law. They were used for online purchase of drugs. However, the federal authorities cracked down on these transactions in October 2013. The Algorithm used for the new Bitcoin is focused on mitigation of risk inflation with the help of a peer to peer group.