[Frequently Asked Questions #1]
Let’s dive into the most frequently asked questions Bitz has been getting lately.
52 days into Startupbootcamp’s Smart City & IoT acceleration program. Many things have changed since day 1 for Bitz but throughout the ongoing process of challenging our own solution and being challenged by external stakeholders some patterns showed up.
Mentors, potential investors and partners from different industries and niches have been asking the same questions over time. In order to be as transparent as possible we decided to start a FAQ series to address this questions as we get them.
Let’s start.
Why does Bitz need blockchain?
We tackled this one in the previous post but as it’s probably the most repeated one it‘s worth stopping here for a sec.
Blockchain has become a buzzword over the last year, especially after the market reached it’s all time high by mid December 2017. As the market conditions overshadowed the utility of the tech, skepticism around it has grown.
However, for Bitz it’s utility is crystal clear.
Our top priority is to provide a safe way for storing and transferring money between people and event organizers. So even if our platform goes down, the tokens stored within the Bitz Network and their value will remain completely intact, as they will be securely stored and accessible through the Ethereum blockchain.
If organizers profit from lost tokens, why would they want to implement Bitz?
I personally love this one because it looks like it makes sense right away but once you get into the actual numbers the panorama changes.
After sitting and discussing with major festival organizers the following numbers popped up:
Lost and unspent tokens count for between 5–10% of the total festival revenue.
After realizing this, one could think that there is no way a festival organizer would switch to a solution like ours that takes that revenue out of the table.
However, setting up the whole plastic token infrastructure (token machines, support desks and extra personnel) responsible for that 5–10% revenue costs organizers +50% more than implementing Bitz. Simple math now, right?
Moreover Dutch laws are currently being tightened regarding this issue, forcing festival organizers to offer seamless ways of getting their money back in exchange of returned tokens. That means this source of revenue already has it’s days numbered.
Why use Bitz over contactless payments?
In a nutshell? Efficiency and security.
With Bitz self-ordering system, both customers and event organizers can experience a more efficient ordering process that let’s attendees buy, pay and pick up their drinks using the app without queueing. Also, unlike most bank cards, with group wallets users can easily manage and split their expenses. Lastly, our Business Intelligence Engine allows organizers to attract and retain more clients by offering them exclusive deals. Each time customers pay with their Wallet, they earn Bitz that they can redeem for exclusive discounts and promotions at Places of the Bitz Network.
On the other hand security is a clear advantage. With contactless cards people can still be skimmed without even realizing it. This kind of pickpocketing is an old but still effective way to steal your money.
