Bitcoin, is an opportunity to simplify all four types of transactions. Using bitcoin removes friction and therefore allows money to flow around the world in minutes. It also can allow new types of money flows that are not possible with existing payment schemes. With bitcoin it is possible for a consumer in the US to buy a silk scarf from an Indian merchant. The scarf that costs few dollars will cost more money to move if existing payment methods are used. International micropayments are not possible in today’s payment world. Bitcoin will provide a much needed opportunity for merchants around the world to play. Micropayments is just one example of a new applications that is not possible with existing payment schemes.
In the developed world, consumers have access to cards and bank accounts. In the developing world, the majority of consumers don’t have access to such instruments and conduct transactions in cash. What would happen if a business in a developing world buys supplies from a merchant in the developed world and what would happen if consumers from the developed world can now use bitcoin to purchase artifacts, authentic good and specialized services from the developed world.
Bitcoin is an opportunity for new payment processors to enable, merchants, businesses, and online platforms to administer various flows of funds with bitcoin. It is also an opportunity for various established players to leverage these new processing capabilities being put forth in the marketplace. Banks, merchant gateways, merchant, acquirers, wireless providers, and intermediaries can participate in this new economy brought together by a next generation platform that moves money digitally and by a set or applications and payment processing capabilities that make this technology available for the broader user.