User Onboarding and Incentives for Bitcoin Adoption
As part of my take on the 2-Week Bitcoin Challenge, I have made at least one bitcoin purchase a day from various merchants across Brisbane for the past couple of days and I learned a few things along the way. Unlike using crypto for online payments, I got to appreciate the thrill of performing a crypto transaction face-to-face. Whether it was getting confused looks (followed by the question ‘so you’re into this Bitcoin thing?’) from customers who were next-in-line, to witnessing store employees scrambling to navigate the unfamiliar payment terminal — the experiences in itself are simply worth it.
One thing I have observed from a consumer’s perspective is that the current state of crypto-payments does favor merchants more than the users. Unlike credit card payments, crypto-accepting merchants bear zero merchant service fees, with no risks of fraudulent payments, disputes, or chargebacks.
Payment providers such as TravelbyBit even offers the service to convert crypto into fiat, essentially absorbing the price volatility risks for the merchant. Furthermore, being a crypto-friendly business makes your store more noticeable among the crypto community, potentially attracting a new stream of business leads and customers.
I am a simple person when it comes to spending my bitcoins. However, price volatility still seems to be a leading deterrent for user onboarding when it comes to transaction utility. Currently, Bitcoin is still too small a currency. We are stuck in a causality dilemma whereby you would need more people to transact with bitcoins for the price to become more stable (which ultimately leads to more people using it).
As a true believer in the fact that Bitcoin will one day fundamentally reshape global finance, I personally view price volatility as an unavoidable and acceptable short-term by-product of a technology that is still new to many people, which makes it almost impossible for the market to conduct a reasonable price discovery today.
Therefore, I see user incentives as a crucial driver for bitcoin adoption at this point. For example, the rewards point system by The Living Room of Satoshi is a great start. (For some reason, I really want that gold cocktail shaker despite the fact that I know as much about the art of mixing drinks as Warren Buffet does about Bitcoin.)
This is the main reason why I chose Nom Nom Valley as my first stop on this journey. I was sold the moment I found out that the restaurant owner was offering a 10% discount on all crypto-payments. Other than being one of the bitcoin-accepting merchants listed on TravelbyBit’s website, it is also one of the latest additions to the food and beverage scene in Brisbane.
The food tasted great, even more so knowing that my meal was paid in bitcoins. (I am a terrible food critic so pardon my lack of description of my dining experience.) That being said, if you have not checked out the place yet, Nom Nom Valley is a cozy Asian fusion restaurant located on Warner Street, right in the center of Fortitude Valley. So what are you waiting for? Go out and spend some bitcoins!
Lastly, be sure to check out my Twitter account for daily updates as I progress further into the 2-Week Bitcoin Challenge. ‘Till next time.
