Magento North East: Introduction to BitCoin
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This document provides an introduction to Bitcoin, including what it is, how it works, who uses it, advantages and disadvantages, and how merchants can accept Bitcoin payments using Magento. Bitcoin is a digital currency that allows for peer-to-peer transactions without an intermediary. It uses blockchain technology and miners to validate transactions. While it offers advantages like low fees and accessibility globally, it also faces challenges from price volatility and security of funds. The document outlines plugins and payment providers that can help merchants integrate Bitcoin payments into their Magento stores.
Magento North East: Introduction to BitCoin
- 1. Introduction to Bitcoin Magento North East September 2016 @RichardCarter
- 3. 1. A crypto-currency Rather than “real” money, it’s “virtual” money you store digitally
- 4. US Treasury calls Bitcoin Decentralised virtual currency
- 5. 2. Distributed currency Transactions are between users: no central intermediary
- 6. 3. Peer to peer currency Public record: a distributed ledger called the blockchain is used to record transactions
- 7. 4. Secured by “miners” Transactions pass through “miners” who validate transaction Paid in newly “minted” Bitcoins
- 11. Plenty of alternatives DogeCoin, Ripple, Litecoin, Mastercoin…
- 12. …but Bitcoin is probably best known and most popular
- 14. Over 100,000 merchants in Feb 2015 (and this has grown) http://www.ibtimes.co.uk/bitcoin-now-accepted-by-100000-merchants-worldwide- 1486613
- 15. Some really big companies!
- 18. Fast transactions No wait for your provider* *But there are some issues these days: https://medium.com/@octskyward/the-resolution-of-the- bitcoin-experiment-dabb30201f7
- 20. Very low fees To convert to “flat” currency such as GBP, USD, EUR
- 23. Reach a wider market Bitcoin is a truly global currency
- 24. No chargebacks Transactions are not reversible (!)* Or are they? See https://medium.com/@octskyward/the- resolution-of-the-bitcoin-experiment-dabb30201f7
- 26. Exchange rate Fluctuates a bit… ..although so does GBP ;)
- 27. Image: xe.com
- 28. Refunds A bit trickier to do in Bitcoin. Most merchants refund in store credit
- 29. Stolen currency? Transactions are irreversible …basically: store a safe, offline copy of your wallet
- 30. How to steal a Bitcoin* *but, don’t
- 31. 1. Copy user’s private keys This effectively gives you the money
- 32. …but that is traceable in Bitcoin’s blockchain (the public ledger of transactions)
- 33. 2. Launder your money Using “mixers”/“tumblers” – transfer it to other accounts in varying amounts to cover your tracks
- 34. …these move the money to a “clean” address in the blockchain.
- 35. 3. Convert it to flat currency …is where it gets trickier, as large withdrawals to flat currency could identify you
- 36. …especially with large amounts. Best to trickle the stolen Bitcoin out slowly
- 37. Bitcoin for Magento merchants
- 38. 1. Bitcoin payment provider As a merchant, you’ll need a Bitcoin payment provider such as BitPay or Coinbase
- 39. Providers should remove some of the headaches for you!
- 40. Ask your payment provider 1. Can I get a unique Bitcoin address for each transaction? 2. How is the exchange rate calculated? 3. How fast are payments approved? 4. What is my exchange rate risk? 5. How do I receive the funds? 6. Are there any fees involved? 7. How can I see a listing of my sales? Source: weusecoins.com
- 42. Small selection depending on your provider
- 43. Small selection depending on your provider
- 45. 3. Profit!
- 46. Further reading on Bitcoin bitcoin.org weusecoins.com (merchants)