What would happen if one of the world’s most popular crowdfunding platforms started to accept Bitcoin? All hell would break loose for sure, but probably in a good way. Despite various attempts, the combination of Bitcoin and crowdfunding remains an illusion. But that situation might be about to change, depending on how you want to interpret the comment made by the European director of design and technology at Indiegogo.
Bitcoin Is a Part of Our Financial Future
Regardless of how you want to look at things, Bitcoin will be a part of the financial ecosystem for a long time to come. Even though the digital currency may not go mainstream anytime soon, that does not mean people will stop using it. In fact, Bitcoin is a viable contender in the battle for mobile payment system dominance.
Anastasia Emmanuel of Indiegogo seems to agree with that sentiment; she believes Bitcoin is a part of our financial future as well. Equity crowdfunding is still in an awkward straight right now and Bitcoin could help iron some of those kinks out, as it acts as a borderless currency. Also, there is no need for a specific infrastructure to start accepting Bitcoin payments.
Indiegogo always had the intention of introducing democratized funding, making capital more accessible to everyone all over the world. However, that ideology has proven to be quite a hassle, due to financial regulation and legislation varying from country to country. But that doesn’t mean the company has given up on their idea, although the focus has shifted to equity crowdfunding for the time being.
Similar to the stories most people will have heard by now, crowdfunding campaigns always pose a certain risk. There is no guarantee of the investment made by individuals resulting in either digital or tangible rewards down the line. Also, getting a refund when a company makes bad decisions or goes bankrupt, is more of an exception than a rule.
“I think regulations are important and it’s also important that regulators understood the whole potential of crowdfunding. These companies will raise a lot of money and hire a lot of people. It’s good for the economy. So it’s important that the system isn’t over regulated”. – Anastasia Emmanuel
But there is more, as fraud rates on crowdfunding platforms are a real threat. Accepting credit and debit card payments are positive to attract many interested parties, yet these payment methods were never designed to be used online. Luckily for all parties involved, Indiegogo has taken the necessary steps to prevent high fraud rates.
In conclusion, Anastasia Emmanuel stated that Indiegogo may support Bitcoin at some point but it is not a top priority right now. The company wants to secure European payments first, before looking at additional payment methods. For the time being, it is advisable not to get your hopes up regarding using Bitcoin on Indiegogo.
Market Demand Will Push Bitcoin Acceptance
Having platforms accept Bitcoin payments is one thing but if there are no customers willing to use it, the matter becomes quite moot. However, as more and more customers demand to pay in Bitcoin for goods and services, platforms and providers will have to follow or risk losing out on a customer base expansion.
It will take a few years until consumers come around to the idea of using Bitcoin for crowdfunding needs. The advantages are public for everyone to see: nearly instantaneous transactions, low to no costs, and global availability without currency exchanges. At the same time, Bitcoin is still a niche market, and its troubled past is not helping matters much.
Source: News Tip Via Email
Images courtesy of Indiegogo, Shutterstock
Also published on Medium.