New York, NY (PRWEB) March 03, 2014
According to a recent article published in the Harvard Business Journal, digital currency is far from ready for primetime. Mt. Gox, the holy grail of Bitcoin exchange and responsible for over 6% of the world’s digital currency supply, recently shuttered without a trace due to hacking, which most believe to be internal theft. With no proof, this financial scam of epic proportion remains largely unsolved and practically untraceable.
There are many claims that Bitcoin cannot survive due to non-regulation. Due in part to the lack of insurance against high volatility (prices have swung between $110 and $1,100 over the last six months) or fraud (Bitcoin wallets have disappeared without accountability for lost funds) and due to its untraceable nature, Bitcoin has invited illicit activity and untraceable exchanges of goods and services across the globe (through sites like Silk Road).
Every day seems to bring a new headline about the Bitcoin, which many originally hoped would become a new way for businesses to accept currency exchanges without being held slave to credit card or bank charges. Money would be mobile in a way that was free from the standard operational rules. Companies would no longer be tied to 3% fees being skimmed off profits. However, in order for a digital payment system to work, it needs to be perceived as a true currency with actual intrinsic value. Or does it?
Frames Bowling Lounge, a bowling and billiards entertainment complex in Midtown Manhattan, believes they can benefit greatly by allowing Bitcoin as a trade of currency for services. Without bank exchange fees, more pure profit can be generated. If the exchange rate holds steady for the time it would take to convert virtual coin back to actual dollars, the company can bank virtually and pay no credit card fees.
“Yes, the system is flawed right now, mostly due to its extreme volatility”, exclaimed Frames Marketing Manager, Frayda Resnick.
“However, part of taking great risk is the potential of great reward, and we are hoping that the transactions happen fast enough to keep the rates in our favor. In addition, by stating that we accept Bitcoin, we are confirming what the public already knows about our brand, that we are as unique as our customers, who are probably owners of the cryptocurrency.
“As soon as companies realize this is actually what the virtual currency was intended for, not for the betting public to sit on in hopes to see their values escalate, it becomes a real way of small businesses holding on to as much of their profits as they can”.
Frames Bowling Lounge, located on west 40th street and 9th Avenue, has opened a bitcoin wallet through Blockchain, and can send a link to their wallet for customers to easily transmit funds privately, without use of a credit card or bank. At time of publishing, bitcoin was valued at $590 = 1 btc.