It is currently possible to buy apparel and shoes with bitcoin via several online stores such as Coingate, Cointemporary and it’s not impossible to imagine large companies like Nike jumping on the bandwagon soon.
However, some significant obstacles will need to be overcome first before this becomes a widespread form of payment: – It currently takes a long time for bitcoin transactions to clear, especially when the network is congested. This means that it’s not feasible to pay with bitcoin in real-time and leaves room for double-spending and fraud. In addition, the lack of regulation makes it difficult to establish trust in the system, which would be required before massive companies such as Nike would start accepting it.
However, all these problems can be overcome, and Bitpay is already making great strides in solving the first problem above. The most significant issues are the lack of regulation and politics. Suppose a proper regulatory framework can be established to protect consumers and companies alike.
In that case, it is just a matter of time before we see more big names joining the party. However, another critical question is if this would benefit those who currently work as shoe designers, fashion designers, and apparel designers?
Perhaps not, as their jobs would be primarily replaced by automation to produce this clothing. There is some benefit, though, as those who manufacture the machinery and 3D printers will see increased demand for their products and thus an increase in income potential.
Five reasons why shoe designers and fashion designers should start accepting bitcoin
There are reasons why shoe designers and apparel designers should start accepting bitcoin as well – some of them may surprise you. If this post convinced you to accept bitcoin, you could follow the example set by designer Rebecca Minkoff, who recently started accepting it for her online store. Go through five of these reasons in more detail below:
1. Save money on credit card fees
When you use a credit card to buy shoes from your favourite designer, then they probably need to charge you the equivalent of 10-15% more to cover their payment processing costs. However, if your company accepts bitcoin, this markup can be reduced to 0% or even become a net positive for the business.
2. Reduce fraud risks
Credit card transactions are risky, as chargebacks have become a common tactic for those trying to defraud online stores. On the other hand, bitcoins can’t be easily forged and thus will stay in your digital wallet even after the purchase with no way of anyone taking them away from you. In addition to this, credit card payments are made public, leading to a security breach in your systems. In contrast, bitcoin payments are anonymous and secure.
3. Rapid international transactions:
There is no way for a single company or individual to influence the price of bitcoin – it’s dictated by supply and demand on the open market. However, because of this rapid fluctuation in price, some people would take the benefit from the currency’s potential hyperinflation and buy goods with bitcoin investing while its value is still low.
This can be problematic when your company accepts US dollars or other fiat currency payments. You cannot satisfy such demands for instant gratification (i.e., buying a pair of shoes today) without losing money due to the time it takes for credit cards to clear. Accepting bitcoin can help you satisfy these requests as transactions are near-instantaneous.
4. No chargebacks
As mentioned above, once a payment is sent using bitcoin, it cannot be reversed by a bank or merchant. This makes accepting them very attractive for e-commerce businesses that would otherwise have to deal with many chargebacks from dissatisfied customers.
5. Global market reach
The number of people owning and actively using bitcoin is still relatively small compared to the total population on this planet. Still, it is growing exponentially as more and more businesses begin accepting it as a form of payment. In addition to reaching more customers, this also presents a new potential market for your business in the form of bitcoin mining.
There are almost no fees involved when purchasing goods, and international payments require meagre conversion rates (something like 1%). It’s becoming increasingly popular amongst businesses because of these characteristics and many more. So if you’re a shoe designer or fashion designer looking to start accepting bitcoin as a form of payment, it may be a good time for you to look into this new technology as well.