Popular online electronics retailer, Newegg has announced that it will now accept Bitcoins as a method of payment on its website. The company will be employing the use of BitPay, a popular Bitcoin payment processor to handle all orders that are placed. The BitPay processor is renowned for its reliability throughout the industry for providing enterprise-grade solutions.
It had recently come to light that Bitcoin was fast becoming the preferred choice of payment for many criminals activities online, after the FBI took down Silk Road – the world’s largest online market for illegal goods – and recovered a whopping $128 million in Bitcoins.
With the recent collapse of popular Bitcoin exchange – Mt. Gox notwithstanding, Bitcoin still continues to be a widely used form of currency on sites that accept it. As such, the move by Newegg is seen as a big push to having the virtual currency legitimized.
Soren Mills, Chief Marketing Officer of Newegg North America said,
Our customers have been asking for Bitcoin as a payment option for months. We believe there is a pent-up demand just waiting to be served and we are happy to open this payment option to them.
Bitcoin’s value in terms of traditional currency has always been volatile and for a retailer, that volatility poses extra risks: no business wants to sell $620 worth of goods for 1 bitcoin, see its value drop and then exchange it back for only $500 worth of traditional currency. However, this is where the service of transaction processors like BitPay are employed – they instantly convert the Bitcoins customers spend into traditional currency, charging a fee for the service.
A Bitcoin transaction costs less than a credit-card transaction, but more importantly Bitcoin payment support ought to help Newegg take its business beyond North American shores.