It is important that aspects such as the benefits of Bitcoin, its simplicity and security are discussed as these will be used to support Bitcoin as a very beneficial means of payment for young adult females in e-commerce. In saying that, through the discussion of terms such as cryptocurrency, digital transactions, the block-chain and mathematical algorithms we can create associations to see how these terms are linked to the benefits of using bitcoin, its simplicity and security. It was identified previously within the report that there are several hindering factors that affect the target markets use of Bitcoin as a payment method, some of which include lack of information, lack of knowledge required to use Bitcoin and doubts and fears associated with Bitcoins security systems as the main issue at hand if the fact that there is no brand awareness. In saying that with the discussion of the main hindering factors that affect the use of Bitcoin by young adult females mentioned previously, we aim to change the minds of the target audience through the identification of the benefits associated with Bitcoin, its simplicity and security.
Bitcoin Benefits:
There are several benefits to which Bitcoin offers and through the proper use, explaining and portraying of such, we can create that awareness for the target audience, further leading to their use of Bitcoin as an alternate payment method for e-commerce. Investopedia (Investopedia, 2018) outlines benefits of using Bitcoin, and are as follows;
Bitcoin buys are discrete. Unless a client will-fully distributes his Bitcoin exchanges, his purchases are never connected with his own character, much like cash-only purchases, and can't be followed back to him. Truth be told, the unknown Bitcoin address that is produced for client buys changes with every exchange (Investopedia, 2018).
Investopedia (Investopedia, 2018) likewise express that a standout amongst the most generally exposed advantages of Bitcoin is that there are no outsider intrusions by governments, banks and other monetary middle people. The system is purely peer-to-peer.
In addition to not having outsider intrusions, Bitcoin buys are not taxed. Be that as it may, contingent upon the dollar estimation of the deal and on specific amounts will decide if charges must be paid on such exchanges. (Investopedia, 2018)
Standard wire transfers and remote buys regularly include charges and trade costs. Like in this way, exchanges expenses will just happen if a Bitcoin intermediary is involved (Investopedia, 2018). This can be a noteworthy favourable position for explorers. Also, Bitcoin exchanges happen rapidly, wiping out the burden of normal approval necessities and holding up periods.
In comparison to traditional payment methods such as credit cards and PayPal, Bitcoin does not require a customer’s personal details as users are kept anonymous. In addition to that, unlike traditional payment methods, Bitcoin offers a service that has no third-party interruptions by governments, banks or other financial intermediaries. In terms of purchases being taxed, Bitcoin transactions are not taxed however could be depending on factors outlined in the third benefit. Purchases made by credit card or PayPal on the other hand are taxed with GST. Most transactions incur transaction fees; however, this is not the case for Bitcoin as transactional fees only apply if a Bitcoin intermediary is involved. Through the use of these benefits we are able to overcome hindering factors such as the overall lack of information the target market has on Bitcoin. Therefore, by creating that awareness, we then show and encourage young adult females all that Bitcoin has to offer them.
Bitcoin Simplicity
Block-chain and distributed ledger technologies define protocols that allow large, ad-hoc, groups of users to transfer value between themselves without needing to trust each other or any central authority. Using public-key cryptography, users can sign transactions that transfer ownership of funds to other users.
Bitcoin was the primary convention to utilize this Block-Chain Technology to make a protected and authorization less crypto-money. It accompanies a built-in language, called Bitcoin Script (En.bitcoin.it, 2018), which decides whether an exchange is approved to exchange reserves. Instead of sending assets to a particular party, clients send assets to a particular Bitcoin Script program. This program protects the assets and just enables them to be reclaimed by an exchange input that makes the program return effectively(S. Nakamoto. 2010).
Every peer in the Bitcoin network must execute each of these programs with the input provided by the transaction data and all these programs must return successfully for the given transaction to be considered valid. It has also been identified that a typical program specifies a public key and simply requires that a valid digital signature of the transaction for that key be provided. Only someone with knowledge of the corresponding private key can create such a signature.
Assets can likewise be protected by more complex programs. An example of this can extend from simpler programs that require signatures from multiple parties, to allowing escrow administrations(S. Goldfeder, J. Bonneau, R. Gennaro, and A. Narayanan. 2018) to more complex projects that take into consideration zero-information unforeseen instalments. (G. Maxwell. 2011), allowing for trust less and atomic purchases of digital data. This last example shows how Bitcoin Script can be used to build smart contracts, which allow parties to create conditional transactions that are enforced by the protocol itself. Because of its Script language, Bitcoin is sometimes described as pro- grammable money.
Simplicity can too be considered as an advantage of utilizing Bitcoin. With the hindering element in which the target audience requires further knowledge of Bitcoins system as a whole, we recognize how the intended interest group can get that more profound information through the plotting of Bitcoins programming systems to urge the target audience to consider Bitcoin to be increasingly favorable position for the young female adults in e-commerce and a lesser extent a risk. Psychology Today. (Vitelli Ph.D., 2018) discusses how people are always willing to take risks, even more so if they are encouraged by others to do so. For that same reason, by showing young adult females the benefits of Bitcoin, this can be used as an advantage in helping create that required awareness. This also gives us a glimpse into the security practices and procedures implemented by Bitcoin, leading us into our next point of discussion.
Bitcoin Security
The security of Bitcoin heavily depends on the motivating force Proof-Of-Work (PoW) based dispersed consensus protocol, which is controlled by arrange hubs called miners. In return for the Incentive, the miners are expected to honestly maintain the block-chain. Since its dispatch in 2009, Bitcoin economy has developed at a tremendous rate, and it is presently worth around 170 billion of dollars. This exponential development in the market estimation of Bitcoin motives adversaries exploit weaknesses for profit, and researchers to find new vulnerabilities in the system, propose countermeasures, and foresee up and coming trends. (Moauro Counti, Sandeep Kumar, Chhagan Lal, Sushmita Ruj,2017).
A study led on the security and protection issues of Bitcoin express that Bitcoin has just manifested a well-known advanced currency in the market (Moauro Counti, Sandeep Kumar, Chhagan Lal, Sushmita Ruj,2017). However, the fame of Bitcoin has attracted antagonists to use Bitcoin network for their selfish motives and benefits. The study also states that today we have approximately 1146 different cryptocurrencies in action, out of which many are a recent introduction to the market. From all these fiat-currencies, the outstanding popularity and high market capital of bitcoins make it attractive for adversaries to launch various security threats. Even though the construction of the Bitcoin protocols with proof-of-work and consensus to protect the user actions are the strong features in Bitcoin, these then become the point of manipulation for cyber thief’s. Although present, Bitcoins security systems are very strong, yet are still to be guaranteed unbreakable.
Despite all that was said, it has been identified that the chances of such illegal activities to occur are minimal as the security systems for Bitcoin are continuously changed and updated to ensure that user information and transactions remain private. Overall like simplicity, Bitcoins security can too be considered as a benefit for the target market. The issue with security rises with fear of illegal activity such as theft or fraud when using Bitcoin. However, Bitcoins security systems are built on a strong crypto programming language as identified in the discussion above. Unlike credit card and PayPal security systems, Bitcoin focuses on one-on-one transactions which minimise the risk of theft or hacking by external sources. We again use this information as an advantage to show young adult females that Bitcoin is and can be very beneficial in creating awareness and can diminish any doubts and fears the target audience has around Bitcoins security.
In conclusion, the main problem at hand was that the target audience are simply unaware of Bitcoin and the advantages it has to offer. This must be changed as by creating awareness too creates opportunity for all to use Bitcoin as an alternate payment method, potentially becoming the customers preferred payment method. With the identification and discussion of hindering factors that affect the target markets use of Bitcoin such as, lack of information, requiring deeper knowledge of Bitcoins systems and issues around security we are able to show young adult females how the benefits, simplicity and security can overcome such hindrances. Overall we aimed to change the behaviour of the target market and encourage their use of Bitcoin as an alternate payment method in e-commerce to which will now be further discussed.