People in Australia will now be able to purchase Bitcoin and Ethereum at over 1,200 newsagents. The minimum purchase is $50 AUD, which must be made in cash, using an interface on an iPad mini available at each of the stores.
Bitcoin.com.au launched the digital currency exchange service in 2016 and has been pushing out its infrastructure for trading Bitcoin, and later Ethereum, since 2016. The CEO of the company, Rupert Hackett, stated that their biggest obstacle has been gaining consumer trust. However cryptocurrency trading is now at an all-time-high, as it enters the mainstream.
Online commerce generally occurs between parties that have never met. It took years for the mainstream to adopt online commerce, and now it is an integral part of our daily lives. We can expect the use of cryptocurrencies as an exchange of value to follow a similar path. In store, one could argue that there is a greater trust value for the consumer, as he or she will physically meet the person behind the trade of digital currency for fiat money. If there’s a problem, the customer may physically come back to the store to settle any disputes, rather than seeing their valuable assets disappear into cyberspace.
As usual, to purchase your Bitcoin or Ethereum, you first need a digital wallet. You can use a software wallet on your phone, or a cold-storage wallet at home. You then visit the store to make your purchase and complete your transaction by scanning a QR code that appears on the iPad mini at the news stand. Transactions will carry a 5% transaction fee, on top of any network fees deducted in the usual transfer of cryptocurrencies from one wallet to another.
According to 9Finance, Bitcoin.com.au believes that this method of purchasing cryptocurrency will simplify the process for people who want to start investing in digital assets, but feel that the process is too difficult. The model does alleviate a few pain points in the process of setting up an account on an exchange, or purchasing coin direct from another user. It also puts the trade into a retail environment, where a savvy store clerk may help the customer to set up their wallet and make the purchase. This initial tech support may be worth the 5% transaction fee on the first purchase. After that, one would expect that savvy users will then explore ways to obtain Bitcoin and Ethereum without paying an extra 5% on top of their purchase.
These new Bitcoin / Ethereum kiosks are a great way to bring cryptocurrency to the mainstream market. They eliminate the fear of technology, and the $50 is a reasonable minimum purchase. The next logical step would be to start accepting trades of other cryptocurrencies in these stores. With an infrastructure of 1,200 locations, scalability becomes easy. The challenge will be to continue to provide added value to the consumer to justify the higher costs associated with these transactions.
People may buy and sell Bitcoin, and make Ethereum purchases on the Bitcoin.com.au website. There’s also a map of locations to find nearby stores. The company is backed by Dominet Venture Partners, a team of angel investors and venture capitalists in Australia.
Daniel is an experienced and dynamic entrepreneur with a demonstrated history of launching and operating successful businesses. Skilled in Business Strategy, Technical Consulting, Coaching, Sales, Entrepreneurship, Team Building, and Public Speaking.
The views and opinions expressed here are for informational purposes only, and should not be confused with professional financial advice. These opinions are solely those of the author and do not necessarily reflect the views of CashTechNews.com. Every investment and trade involves risk. You should conduct your own research, and contact your professional financial advisor before making any investment.
Corrections, feedback, and ideas should be submitted through the website contact form.