Bitit, a company based in Paris, has launched a new initiative to let consumers buy bitcoins from 100,000 physical stores all over the world. Physical Bitcoin gift cards can be of major significance in the efforts of pushing digital currency adoption to new levels. Plus, Bitit provides consumers with a physical representation of Bitcoin.
Bitit Brings Bitcoin Gift Cards to the World
Acquiring digital currency has been quite a challenge for consumers all over the world, even for those with a more technical background. Signing up for a Bitcoin exchange is relatively easy, but not everyone feels comfortable verifying their identity online, and there can be a trust issue when dealing with financial parties over the Internet.
Moreover, consumers are having a difficult time grasping the concept of buying Bitcoin – a digital currency – as it has no intrinsic value in their eyes. Something that is created on the Internet, yet not controlled by banks or a government, can’t have any form of value, in theory. Bitcoin has proven the naysayers wrong as the digital currency certainly has value and accepted by people all over the world.
Bitcoin startup Bitit is trying to tackle this issue from an entirely different angle, by putting digital currency in the hands of consumers around the world in physical form. There is no easier way to get digital currency than by walking into a regular store and picking up a physical gift card with a prepaid Bitcoin value. However, it is worth noting Bitit also allows users to buy Bitcoin through their online platform, should they prefer to do so.
Bitit CEO and co-founder Nicolas Katan stated:
We have a vision to democratize Bitcoin for all. Bitcoin is a really great technology. But the problem for now is that it is complicated and difficult for people to access. We are going to have a lot more transactions. It’s growing really fast. We have to be ready to continue to adapt our fraud system and make people know they can trust us.
Bitit is currently trialling their plastic gift card solution at La Maison du Bitcoin, a well-known meetup space for Bitcoin enthusiasts in the capital of France. What makes this solution so appealing is how the startup managed to secure strategic partners to buy more bitcoins on consistent basis. This strategy reduces waiting time for a bitcoin purchase to complete.
Minimizing Overspending Risk
One of the potential issues for Bitit comes in the form of buying significant amounts of bitcoin and not being able to sell them at a favorable rate. Bitit has come up with several in-house developed algorithms to estimate the supply and demand at all times. Moreover, they are also working to reduce the risk of fraud as customers can buy only $25 USD worth of bitcoin without paperwork.
Raising these limits is subject to identity verification, which users can complete by submitting the necessary documents through the Bitit online platform. Once this step has been finalized, Bitit customer limits will be increased to $500. Users will still need to create their Bitcoin wallet, although the company hopes to offer such a service in the future as well.
Reaching the target of getting physical Bitcoin gift cards available for purchase in 100,000 stores around the world is quite the challenge. That being said, Bitit has a strategic partnership with Neosurf, a company selling prepaid vouchers in roughly 100,000 locations across Europe, Australia and the United States.
Last but not least, Bitit deserves some serious praise for offering such a promising Bitcoin service before raising one cent of funding. The company has only been around for a few months, and they did receive $20,000 to get started. However, these funds did not come from a funding round, and so far, Bitit has processed over $60,000 in bitcoin.
What are your thoughts on the Bitit business plan? Let us know in the comments below!
Images courtesy of Bitit, Shutterstock