Exciting articles several times a month
18 April 2018
A couple of years ago, the blockchain society was speculating about future of the crypto money and that someday it will become possible to buy real things in exchange for Bitcoin, coffee, for instance. Today, the reality is a little different. With the growth of the Bitcoin rate, transactions fees are getting high as well. This makes it impractical to buy everyday products, including a cup of Starbucks coffee. Originally, Bitcoin was meant to be low-cost, safe and quick for transactions. However, lately, each transaction was made for about $5 on average with slight decrease occurred later that lowered Bitcoin transaction fee to $3.50. In December 2017 when Bitcoin hit almost $20,000 the average transaction fee was $55! However, three years ago, it cost 10 cents.
Today, when Bitcoin’s total value is expected to exceed over 1 trillion US dollars, operations with it become more expensive and troublesome. Of course, spending $10 to send $20,000 in Bitcoin is not a problem, however, spending such fee for a cup of coffee, which generally costs about $5-6 as it was a dream of cryptocurrency predictors, is not OK. As experts state, Bitcoin or other major cryptocurrencies are not effective for small payments, daily transactions such as purchasing some products in a supermarket. The transaction processing time is delaying with growing number of transactions, and a cup of hot coffee may quickly cool down before the Bitcoin payment processing is completed.
In such an unfavorable condition, coffee addicts from among cryptocurrency users are not losing their hope. Several coffee shops are planning to introduce an option involving payment with cryptocurrencies for their products. Some coffee serving companies are already accepting crypto payments, and all of them use their own approach and principles. In this article, we have collected information on some of the coffee shops that welcome cryptocurrencies or can start accepting in near future: their stories, plans, etc.
This is a brand new café that started operating in Indonesia and Singapore from December 2017. Fully relying on cryptocurrencies, Ducatus Café does not take cash or card payments. All payments should be made in Bitcoins or Ducatus, which is a digital coin created by the café itself. Actually, this café is a part of a project developed by Ducatus creators and meant to give the opportunity to investors to have a real place to spend their coins. According to the company owners though, their purpose is to prove that cryptocurrencies, including Bitcoin, can be spent on buying everyday products or services. For those who do not possess cryptos, they installed an ATM where clients can easily exchange their cash to Ducatus or Bitcoin.
Recently a representative of Starbucks top management hinted that Bitcoins and other digital coins could possibly be paid for Starbucks coffee using the company’s mobile app. Earlier, it was announced by the company that it started a pilot blockchain program in cooperation with farmers from Costa Rica, Rwanda, and Columbia where their product is grown in order to track the product that starts its journey from coffee plantations and ends in a Starbucks cup. Definitely, such move is expected to demonstrate to the world the company’s will to deliver high-class product by applying blockchain to bring transparency to its processes and more trust in the company. Unfortunately, so far, Starbucks cannot boast that it is open for Bitcoins as a payment means.
Australian restaurants and cafes that are participating in Liven’s loyalty program allow their customers to earn points using Liven App. Those points then can be converted into LivenCoin, a private cryptocurrency that diners be able to spend in any restaurant or café in the Liven’s network. Usually, such earning method works similar to cashback where 25 of the customers’ spending would return to them in form of points. What makes it unique is the possibility to earn those points in one café and then use them in another restaurant or café. Another important advantage is that LivenCoins can be exchanged if its owner does not wish to pay them for the coffee.
A popular coffee shops chain from Israel Café Joe recently made a statement saying they start to accept digital currencies in branches of the café in the USA. It is anticipated that payments for the coffee should be completed through Coinbase Commerce, which is a payment system powered by cryptocurrency exchange platform Coinbase, which is created to resolve the problem of costly transaction fees when making everyday purchases.
Exciting articles several times a month