This article will try to make a cross-sectoral analysis of bitcoins’ impact on the marketing industry in Iceland. The objective is to study how bitcoin transactions are done, their effects on global spending habits, and finally, whether it can be considered an excellent investment opportunity. Visit the bit-iq.de for more information on bitcoin trading.
7 Positives of bitcoin that affects the marketing industry in Iceland:
1) Monetary policy reform:
The primary benefit of bitcoin is its low transaction fee compared to conventional payment methods like wire transfer, credit card, debit card, or PayPal. As a result, bitcoin enables merchants to avoid banking fees as high as 3-5% per transaction. This will allow them to save more money and increase their profit margins.
2) International market access:
Another benefit of bitcoin is that it allows merchants to cut-down transaction fees when selling internationally, especially if the other country has no banking system or infrastructure.
The only requirement for doing international transactions is an internet connection. This will give any merchant accepting bitcoin an upper hand over competitors who don’t take it as a means of payment.
3) Reduced chargeback fraud:
Credit and debit card transactions are reversed for the first 30 days after the purchase, called Chargeback Fraud. Many merchants will rule out first-time international customers and high-risk countries to avoid this loss.
However, chargeback fraud cannot happen when accepting bitcoins because transactions are between two anonymous parties.
4) Increase in the customer base:
Accepting Bitcoin as a payment method allows merchants to reach out to new customers globally. As a result, Bitcoin users come from the entire world, and the community is continuously growing at an exponential rate.
5) Global market expansion:
Accepting bitcoins as a payment method also provides businesses with the opportunity to expand their global reach through online marketing, primarily via social media.
6) Marketing tool:
One of the easiest ways to spread the news about a business is by marketing it over social media. Bitcoin users are connected via an online community, and they constantly share information on their social platforms such as Facebook, Twitter, LinkedIn, and Google+. This will allow businesses to increase their exposure via word-of-mouth marketing.
7) Target market selection:
It is essential to identify a business’s target market to get the best ROI in marketing. In this case, bitcoins can make things easier for marketers by choosing between customers who use bitcoin and those who don’t. This will give marketers an upper hand when planning their marketing strategies.
5 Negatives of bitcoin that affects the marketing industry in Iceland:
1) Uncertainty as to the future of cryptocurrency:
Due to their high volatility, cryptocurrencies are pretty unpredictable. In other words, their value can rise or fall significantly within a few days or even hours. This is usually due to heavy trading or a major world event that affects their value.
This poses a risk for marketers because the price of bitcoin can drop suddenly and stay low for a long time, which results in a waste of money spent on ads.
2) No Central authority:
Bitcoin is not ruled by any central authority such as banks or payment processors, which means merchants cannot accept or transfer bitcoins through these institutions. Unfortunately, this means that they can’t receive payments quickly because transactions may take up to 10 minutes to be processed and approved by the bitcoin network.
3) Bitcoin’s volatility:
As mentioned above, bitcoin’s price is very unpredictable due to its volatility. This is because marketing campaigns usually have a fixed budget, and these cannot be adjusted when bitcoin’s price suddenly drops.
4) Uncertainty regarding regulations:
There is still no legislation in Iceland that regulates bitcoins and other cryptocurrencies. This means that any bitcoin-related business is not protected by the government if something goes wrong, such as hacking cases or fraud.
5) Identification issue:
Individuals only need to swipe their cards and enter a four-digit pin to purchase when using credit cards. However, with bitcoins, all the hassle of identifying the buyer is not required because they are sent from one anonymous user to another.
Conclusion:
Although bitcoins and other cryptocurrencies have a lot of potentials, it is still quite risky to rely on them as a business’s primary source of revenue. The lack of legislation and central authority over the currency makes its value unpredictable and prone to sudden drops, which puts merchants and marketers at risk.
