What is Bitcoin and how to use it on a marketplaceApril 22, 2022
A growing number of individuals and businesses use Bitcoin and other cryptocurrencies for payments, savings, and investment, as a hedge against inflation, as an instrument against censorship, and for other purposes. Transacting in Bitcoin has its challenges but also strong incentives. Here, we outline why people choose to get paid or to sell things for Bitcoin and what to consider when it comes when choosing it as your payment method.
What is Bitcoin?
It’s an incorruptible currency with a limited number of coins that will ever get produced. Bitcoin has a limit of 21 million coins and every transaction is signed on a globally distributed ledger. It cannot be reversed, censored, or double-spent. No company, government, bank, organization, or individual controls Bitcoin and there are no mediators in transactions between peers.
Why use Bitcoin for payments?
Bitcoin never stops and has no closing hours like banks this is why payments can be processed continuously. Transactions get settled within 10 min. It doesn’t require a bank to open a Bitcoin account. It doesn’t discriminate and can be used anywhere by whomever. Bitcoin has the power to spark curiosity and interest in economics raising financial education of individuals that may bring a better financial situation.
Bitcoin for payments only or on a balance sheet
Accepting Bitcoin solely for payments without taking it on a balance sheet means that it’s instantly converted to a fiat currency like USD, EUR, or other. This means there’s minimal price volatility risk and a person takes no exposure to Bitcoin price fluctuations. Taking this approach will likely mean that there will be a need for a currency exchange service that will deal with all AML/KYC (Anti-Money Laundering/Know Your Customer) regulations.
Accepting Bitcoin and keeping it on a balance sheet means that a person or business accepts the risk of volatility in exchange for censorship resistance, incorruptible money, investment opportunity, and hedge against fiat currency inflation. This approach doesn’t necessitate a middleman and the payments occur purely between two agreeing parties.
How to accept Bitcoin payments?
If Bitcoin payments are to be received and converted to fiat then a Coinbase account gives its users the option of converting Bitcoin into fiat at the point of sale. In this case, Coinbase works as a payment processor and a middleman.
Tukan Market has been created primarily to facilitate peer-to-peer payments. Peer-to-peer means that the transaction occurs solely between two people and no other party as currency exchange, a website, or any other service takes part in the transaction. We believe that installing a wallet app and receiving and sending payments to another person in front of you is the best approach to commerce.
There are many different Bitcoin wallets on the market. A wallet app is the easiest way to go while a hardware wallet is the most secure.
The most primitive wallet is simply a Bitcoin address and a QR code. If you print the code others can scan the code and send you Bitcoin to pay for a product or a service. Alternatively, there are other options like: Blue Wallet for mobile, Samourai wallet for Android users, Atomic wallet for mobile and desktop, etc. Hardware wallets of choice are Ledger Nano S or Coldcard.
How to use a wallet?
Generally, after the installation of an app, the user is prompted to save a series of words. These 12 or 24 words are called a seed phrase. This seed phrase needs to be written down and kept safe so no one can see it. If you ever change the phone and will need to restore the wallet, you will need to input this seed phrase in the new device otherwise your funds will get lost. Account security is very important because Bitcoin has no customer service to call. Bitcoin is about being responsible for your funds and for the choices you make.
How to buy and sell things and services on Tukan Market?
Tukan Market allows you to publish your ads for free. Set the price for your products, stuff, or services. The clients contact you at your email address or on your WhatsUp and you agree on a place to meet and finalize the deal. Make sure the email and the phone number are real so you can receive offers. Buying or selling through our marketplace is not possible. Our mission is solely that of connecting buyers with sellers and facilitating face-to-face commerce at a local level. We want to bring back low-mile commerce where you can meet people and create a local network of merchants yourself.