Why Bitcoin is the Future of Micro-Transaction

While Bitcoin can be considered a child in the digital age, thousands, if not millions, of people are doubting and proclaiming the impending death of this digital currency. Experts tout that the conceptual backing of Bitcoin is a mere fad and should never have reached its current value. For those who are curious, the current value of 1 Bitcoin is, at the time of this article $7,146.50, which is at an all-time high.

It’s statistics like this that have Christine Lagarde, managing director of the International Monetary Fund, intrigued at the apparent growth of Bitcoin. The reality is, if anyone glances at the statistics or graphs referencing the growth of Bitcoin, all you will see is growth. Bitcoin is, without question, firmly planting its fit in the digital world, claiming its territory, and proclaiming itself, “the Future of Microtransactions”.

What are Microtransactions?

Microtransactions are a loaded concept that, depending on the industry, the term can mean or hold different values. For example, well-known financial institutions like PayPal or local traditional bank may view microtransactions as anything under $12 to $10 USD. However, in the Bitcoin industry, microtransactions function entirely differently. In fact, typically, a microtransaction may be anything under 5 USD cents and as to little as thousandths of a cent.

The Future of Microtransactions

Increasingly, online and world-renown businesses are becoming aware of the impending power of Bitcoin. The inclusion of the digital currency as a means for payment exchange is becoming popular as companies like Microsoft and Dell have already begun the transition. As for the digital world, Bitcoin has become a major subject of microtransactions.

Bitcoin Microtransactions

Since Bitcoin does not require any traces of sensitive financial information, many websites are utilizing Bitcoin microtransaction to help promote better behavior and activity. This has become quite a popular positive reinforcement technique for individuals in the Bitcoin industry. It is an understatement to think that companies and websites are not developing new innovative ideas to transform this method in efforts to promote better business.

In other cases, Bitcoins can be sent to family or friends to purchase smaller goods like coffee or small delicacy. Such microtransaction are extremely minimal and could become the perfect spontaneous gift, especially during the holiday seasons.

The true potential of microtransactions could be said for those in the non-profit industry. With Bitcoin, individuals from around the world could donate money to thousands of different charities or non-profit organizations. With quick-and-easy transactions, minimal fees, and private transactions, Bitcoin microtransactions is quickly becoming the next-big thing. If you did not know, even one of the largest non-profits in the world, Red Cross, accepts Bitcoin microtransactions. Who do you propose is next?

Ushering in The Future

Consider what Christine Lagarde mentioned regarding the true benefit of Bitcoin, “Citizens may one day prefer virtual currencies, since they potentially offer the same cost and convenience as cash – no settlement risks, no clearing delays, no central registration, no intermediary to check accounts and identifies.”  [1] Through understanding the functionality of Bitcoin and microtransactions can one then begin to see the greater benefit of Bitcoin for the future, as Lagarde eludes.

 

[1] https://www.imf.org/en/News/Articles/2017/09/28/sp092917-central-banking-and-fintech-a-brave-new-world

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