Bitcoin has surged in price recently, to overtake the price of gold. Most of the media attention recently given to the crypocurrency has focussed on the forthcoming ETF decision by US regulators and Bitcoin’s status as a safe haven currency to rival traditional defensive assets.
However the potential for usage with mobile applications seems to have many possibilities with the APIs available for buying and selling bitcoin. As more and more devices become connected to the internet, and the internet of things becomes more popular and a part of everyday life, Bitcoin seems like a perfect choice for apps making automated transactions. For example, rather than apps solely being for the traditional mobile device, we could see developers creating apps for things like smart fridges, which order food and supplies automatically by means of simple bitcoin transactions. And smart cars which pay for petrol or electricity usage, bridge tolls, taxation, and insurance premiums automatically by way of bitcoin.
Bitcoin currently has a problem with ease of use for users obtaining the currency and knowing how to securely store it but once more well known and trusted mobile apps become available for this purpose, we can expect usage to become far more widespread. This will have a compound effect – e.g. Bitcoin now in 2017 is a bit like email in it’s early years. No one really had it so no one else used it either.
Bitcoin also faces resistance from the establishment and greedy banking corporations whose enormous international transaction fees are threatened by the cryptocurrency. Things like criminal usage and tax avoidance will continue to be stated by establishment figures as key reasons to regulate and restrict its usage. However with the progression of faster and more widespread mobile internet, and new, innovative and famous financial apps based around bitcoin, we can expect those perceptions to fade. For ordinary people sending transactions across borders, whether for means of remittance, travel or commerce, the benefits and monetary and time savings of this new technology are huge.
Media attention has often focussed upon international transactions and people who don’t use traditional banking. But with new and widespread, easy to use mobile apps for Bitcoin, existing regular payment methods like direct debit for everyday consumer purposes and bill payments could very quickly be replaced.
The software, combined with things like location tracking and beacons, could facilitate much quicker, automated public transport payments, entry to galleries, museums and tourist attractions, hotels and hostels. The bitcoin payment would be automatically deducted and seemless to the user – saving time and overcoming language barriers. Payment details could be pushed to the users device for later review and query / refund.
Moves by Apple and Google to integrate the Bitcoin API in to their software would represent an enormous step forward for the cryptocurrency, and whilst they are increasing revenues with their own proprietary payment systems this seems a long way off. However, if it doesn’t happen soon, then other developers may well look to fill that void themselves.