in first part of the report, with the rapid development of today’s modern
society, along with the explosion of the Information Technology, money has been
used as digital values stored on computer or electronic device. Users can
perform electronic transactions by transferring digital values from one
computer (or electronic device) to another (or electronic device). This kind of
money is called electronic money- virtual money.
You may have
noticed that virtual currencies such as Bitcoin, Ertherum, Litecoin, Dagecoin,
or even Darkcoin, are gradually appearing on the payment symbols of commercial
And in the
Netherlands, the popularity of virtual currency is really popular or not? The
answer is yes!
a newspaper article that showed the popularity of virtual currency in the
Netherlands in September 2017, the number of Bitcoin users is increasing, along
with other virtual currencies such as Etherium and Litecoin.
Netherlands boasts a “private Bitcoin city” in Arnhem. Arnhem is
located in the East of Holland – an ancient city with paved roads and bicycles
on every corner. Thanks to Bitkassa, a Dutch company providing a payment solution
similar to Bitpay, more than 150 retailers in Arnhem have accepted Bitcoin in
daily transactions. You can trade at any store in this city, from private
shops or stores of famous brands like Burger King, Spar, …
cryptocurrency is not currently within the legal and financial supervision
framework in the Netherlands. This is the reason why so many business projects
have been launched, from Bitcoin ATM to Bitcoin Embassy, ??located in the
heart of Amsterdam.
Amsterdam Embassy Association is a not-for-profit organization with a broader
vision of Blockchain and peer-to-peer (digital) technology to become a bridge
between individuals and businesses. through the media. Since then, it has contributed
to the development of virtual currency and launching potential projects.
In addition, the country’s banks, including ABN Amro and ING
Bank, are increasingly looking towards Bitcoin and Blockchain as a way to
improve their technology and optimize their costs. The country is also the home
of the bitcoin trading platform and is home to many startup companies- cryptocurrency and ICO.
For professionals in the IT industry, virtual currency and
its way of transaction is no longer so strange. In contrast, for those who do
not know about it, how to transaction and payment with virtual currency?
Because bitcoin is the most commonly used virtual currency,
we will take its transaction as a typical example.
For traders, the first thing a merchant should do when
planning on accepting Bitcoin at their online store is to figure out how they
want to handle digital currency. They will receive a Bitcoin wallet and the
first trading numbers with the currency. To understand clearly, Bitcoin wallet
is similar to a Bitcoin bank account to contain your crypto currency. You can
receive bitcoin, store bitcoin, bill payment with bitcoin and send bitcoin to
others when you have a Bitcoin wallet. They can create it via Blockchain- a protocol that allows all operations such as
asset transfer and digital values (money, contracts, securities transactions or
IP) to become more secure. If e-commerce
websites do not have an integrated shopping cart system and sales are handled manually,
store owners can accept Bitcoin immediately. All that a merchant needs to do is
use their wallet address to accept the currency and place a table “Accept
Bitcoin Payments” on the site. They can then place a QR code on their
website to the customer scanning and start accepting Bitcoin immediately. This
is probably the simplest way that a merchant can do to accept Bitcoin without
integrating a payment gateway.
For Bitcoin users, although its way is more complicated than
the seller, customers do not use it too hard.
Having a Bitcoin wallet as a merchant, customers can
purchase Bitcoin by credit card or bank transfer. Simple providing a Bitcoin
address where their example creation and bitcoin will be routed to for example,
then users can use them to buy whatever their want.
Next, just go to the online store they want to buy and
select the product they need to buy. Then go to the payment section and choose
to pay by Bitcoin or click on the Bitcoin icon. They will be provided with the
same ordering and price information when switching to Bitcoin with a QR code to
scan from their wallet (if they use the wallet installed in phone or tablet).
Opening wallet on mobile device and scan the QR code. The code will turn green
after 1-2 seconds indicating that the payment has been completed.
If they use a desktop wallet, click “Payments” on
the Bitcoin Client. Wallet will be opened for them to verify the correct
information (Order ID, Bitcoin number, Bitcoin address) and confirm the
information to make payment.
Once the customer has made the payment, the store on the web
will transfer the credit to the seller / shop immediately and only they have
the right to refund.
Not only is it a new trend currency, the benefits it brings
to business as well as transactions in the small business.
If you are a merchant, there are many benefits to accepting
virtual money as a payment method. The first is the processing costs paid by
the buyer and the seller does not need to pay anything to receive money. These
fees are significantly lower than traditional payment networks. It allows sending
global merchandise without currency restrictions. It allows irreversible
one-way transactions. And since this is the way Bitcoin operates, so merchants
do not risk being charged. It is becoming more attractive and more likely to
become an acceptable payment method in the future. There is no subscription fee
or monthly fee to use Bitcoin directly, it is different from traditional bank
accounts and payment networks.
Large payments can be made easily without the maximum limit
on the size of the payment. Some traditional payment processing networks charge
more for larger transactions or limit transaction size, causing problems when
selling high value items and other large transactions.
Equally, there are many benefits to the buyer when using
Bitcoin. It allows for quick confirmation within 10 minutes and makes
international transactions more convenient. It also allows you to purchase
goods from overseas without having to worry about currency issues. Storage of
money is not difficult. Transaction fees are paid by the depositor, but usually
only a few cents. This may result in the overall cost of some items being lower
for the buyer since the seller does not have to pay for large processing fees
during the transaction. Electronic wallet can be used on any electronics like
android, apple, pc. Some wallets can be used on USB. Security of large
transactions between sellers and individual buyers has increased significantly
with multi-signature escrow services.
Talking about transaction fees, as you know, at the
beginning, Bitcoins dominate the cryptocurrency market. One of the advantages
of Bitcoin is that it can cross borders with zero or very little transaction
fees. However, Bitcoin fees are no longer available, and Bitcoin fees are even
higher than PayPal and Western Union. Trading companies are cramping their
brains using Bitcoin as a currency because fees are cutting their margins. The
Bitcoin transaction fee has increased 19 times, from 13 cents for an average
transaction in the second quarter of 2016 to $ 2.4 the same period this year.
Bitcoin transaction fees are rising so that other currencies
such as Dash and Litecoin can be used more widely.
In conclusion, Virtual Currency is an emerging technology
that has the potential to change and improve the trade as we know it. It has
the advantage for both buyers and sellers, such as no merchant fees, low
transaction processing fees, cross border work and many technical improvements
have been made. Virtual Currency is a very good payment system for merchants to
accept it because it is the potential for future digital money and merchants
almost no loss to accept this payment system.