- What is “Cheaper In Bitcoins” about?
- In order for us to answer that, one must ask “What is a bitcoin?”
- A Bitcoin is a digital currency that allows anybody in the world to send funds to another person or entity. Its as easy as sending an email but just as safe as any modern day Bank. Now back to the original question, Cheaper In Bitcoins is an online e-commerce website that provides a wide variety of products to exclusively the Bitcoin community and only accept Bitcoins as the only currency for payment of products.
- Why only accept Bitcoins?
- Bitcoins is an excellent example of innovative technology of our time! We have a firm belief that Bitcoins can be accepted everywhere, just like Visa or Mastercard. It will change the way people do business. For example: If I wanted to purchase an item that can only be exclusively found in Europe(or any other country) I must then convert my USD into Euros. This sounds at first not such a tedious task, but in reality there are exchange costs, withdraw fees, and taxation every step of the way. This can cause a psychological barriers between merchants and customers with huge uncertainty and anxiety. Less money is usually made because of this barrier. Bitcoins can solve this problem very easily as Bitcoins by design are not required to go through an exchange or a central authority; They are decentralized and can be sent instantly with minimum transaction fees even high priced transactions are only a few cents(USD).
- Besides the whole psychological barrier scenario that is hindering good business trades across the globe, Bitcoins can solve another major problem with Identity theft, and almost obliterate it completely. Identity theft is a huge problem world-wide and nine times out of ten its the merchants fault for having such sensitive data stolen. Entrepreneurs do their best to make money and investing in websites with Bank security integrated into the database is just way to costly to be running a retail store; Mind you most businesses have a huge potential for failure as starts up often fail 80% of the time and that’s only within the first year of doing business. The only way to prevent identity theft is to not require merchants to need so much sensitive data to make a purchase and Bitcoins are the answer!
- Where does Cheaper In Bitcoins capital go?
- Cheaper In Bitcoins is a very lightweight company, We only need the cost of hosting and the annual supplier fees(some times monthly supplier fees). Hosting costs at this moment is in the $30-$40 range. Although we are lightweight in expenses the catch to this is suppliers only deal with non-digital currencies. In the United States we only deal with USD and it's safe to assume that 99% of all American suppliers will deal in only USD. So this arises the issue of converting the Bitcoins into dollars at an exchange service, then to only request for a bank wire transfer of those funds. Lets just recap what a customer must painfully go through in order to make a purchase with Bitcoins:
- 1.Send Bitcoins (Instant – 10 minutes)
- 2.Merchant sees order and confirms the funds are their. (1-3 hours)
- 3.Merchant converts Bitcoins into USD (Instant – 5 minutes)
- 4.Merchant request for funds to be sent to bank account (2 - 3days)
- 5.Merchant sends money to supplier for funds. (1 day to accept payment, 1 days to ship)
- So that means the customer is forced to wait on average around 5 days and 3 hours until their product is even shipped out the door and on to the mail truck. That is just way too long to make anybody wait for just a package. Now if Cheaper In Bitcoins had a lump sum of money for capital waiting to be used we could cut through this process almost entirely. The way we would do this is, for example suppose we had $1000 in a bank account just sitting. Now suppose a customer purchases an order that is worth $1000 in Bitcoin value. All the merchant(Cheaper In Bitcoins) must do is send the funds to the supplier(which takes 1 day to accept, and 1 day to ship out the door). That’s already cutting 3 days of waiting time. Customers will be pleased with their quick shipments and tell others about how quick, fast and easy it is to buy with Cheaper In Bitcoins and just from cutting those 3 days down it could increase sales 2-fold
Cheaper In Bitcoins proposel for captial/loan
a guest Sep 20th, 2011 118 Never
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