The recent trends in digital currency and the rise of Bitcoin after the collapse of the ‘Silk Road’ have caused a stir among online communities.
As a marketer, one considers how digital currency will effect E-commerce, digital advertising revenue, and the way online transactions operate.
What is Digital Currency?
According to Wikipedia:
“Digital currency, among its various names, is electronic money that acts as alternative currency. Currently, alternative digital currencies are not produced by government-endorsed central banks.”
With 89% of U.S consumers preferring to shop online. Will all websites have to adapt to cryptocurrencies as they rise in popularity and are traded for items or profitable exchange rates across the globe.
Should we trust digital currencies and are they tangible? With some countries banning their usage in online transactions, will they simply disappear and become a historical internet trend?
Digital Currency and Marketing:
Let’s take Bitcoin as an example. As with any product or service trending in the online world, a certain amount of tech lovers, web enthusiasts and internet advocates, will want to get involved and embrace it.
A recent case study of digital currency is that of Sapan Shah’s Subway franchise.
In November off 2013 Shah decided to start accepting Bitcoin as a valid currency for purchases in his Subway store. People drove for hours to leverage the simple novelty of buying lunch with a digital currency. Soon the likes of CNN and Entrepreneur magazine were covering his business. This resulted in spike in custom, a fantastic ROI and plenty of free press!
But is this a novelty? Or will digital currency soon dominate the world of E-Commerce? Will countries have to surrender to the power of online currencies in order to keep afloat in the global economy?
Marketers and business owners need to keep their ear to the ground and monitor digital currency trends. One must ask the question, is this going to impact my business or industry. If so, it would make sense to put a concise strategy in place and learn as much as possible about cryptocurrencies before such an impact happens.
Trends may be monitored through social media channels, currency nd e-commerce blogs, or entrepreneurial forums. The trick will be to stay ahead of the game.
Do you use digital currency? What do you think it means for the marketing industry?