You have probably gotten spurious emails from telemarketers or an annoying Facebook friend asking you to trade in Bitcoin. It is a common tactic for them to tell you that if you had invested $25 in Bitcoin in 2010, you would be worth more than $ 80 million today. If you read here, you will find that If you are too quick to accept, you may easily fall into misleading Bitcoin or cryptocurrency scams. The truth is, most people do not have a clue of what Bitcoin is, let alone how withdrawing / spending Bitcoin occurs.
So, what is Bitcoin?
To put it simply, Bitcoin is a type of digital currency that utilizes encryptions to authenticate and transfer funds. It is just one of many cryptocurrencies in the market today. Bitcoin uses blockchain technology and a ledger system to function. Bitcoin is not dependent on any nation or country to control its pricing; thus, it is independent. Sounds ominous, right? How is it independent? The original creators of Bitcoin were troubled by the vast reliance of the economy on a currency controlled by governments. The computer geniuses decided to invent a digital currency whose pricing and rules would be devoid of any state or government control.
Despite the ludicrous growth that Bitcoin and other cryptocurrencies have undergone in just ten years, public reception and Bitcoin usage have remained relatively stagnant.
How feasible is transacting restaurant bills using Bitcoin?
As Bitcoin entered the market in 2010, most companies and businesses were hesitant to try it because they did not yet fully understand what it was. And as they say, people fear what they do not understand. However, some restaurants and eateries decided to try the new venture, and they amassed huge profits.
In Florida, a small pizza shop was among the first businesses to transact bills using Bitcoin when they sold two pizzas to Laszlo Hanyecz, a computer developer. As Bitcoin continued to gain popularity, other restaurants started accepting Bitcoin as a viable means of payment. Lean Crust Pizza’s owner, Daniel Sim, said that his restaurant was transacting in Bitcoin since 2013. At the time, he noted they were making 25- 50 transactions per week where customers would be withdrawing / spending Bitcoin to pay for their meals.
Other restaurants and eateries that tried trading in Bitcoin include KFC Canada, a Subway restaurant in Allentown, Pennsylvania, and Buffalo Pizza & Ice Cream Co. in California. More and more restaurants are embracing trading in Bitcoin. After they have accumulated enough bitcoins, the restaurant owners often go with the option of withdrawing the Bitcoin by converting them into US dollars. However, Daniel Sim advises restaurants to keep Bitcoin as coins over withdrawing / spending Bitcoin since it has huge growth potential.
Are there risks?
Since Bitcoin is an independent digital currency, it is highly volatile in terms of pricing. Moreover, several other cryptocurrencies have recently entered the market and thrived as Bitcoin has. While Bitcoin still has a huge potential for growth, the future is uncertain, especially since so many cryptocurrencies and other types of digital currencies have entered the market. While it is very profitable for restaurants to accept and trade in Bitcoin, it is wise that they do so with caution. They could perhaps withdraw the Bitcoin every few weeks or go for spending Bitcoin in their purchases.