How Bitcoin is Being Used In the Mobile World

Since the invention of  iPhone, mobile devices have become an essential part of most people’s lives. You tend to feel that something is missing when you don’t have access to your phone, and it is considered even more useful than the desktop computer because of its ability to be used on the go. So it is natural that Bitcoin would eventually go mobile.

Bitcoin Becomes a Mobile Tool

It used to be that everyone was afraid to put their credit card information into any website lest they be ripped off. Nobody trusted the Internet or anyone they met through the Internet and this caution was common. In the last decade we have seen that the attitude quickly changes as more people become comfortable with the technology and learn how to secure it.

Banks have all developed their own applications for mobile use in order to make things as easy as possible for customers and facilitate more transactions. The higher the dependence on their service, the more they are going to make in the long run. Now that it is generally accepted that people will put their bank details into their phone, there is no reason they can’t do the same with Bitcoin related applications.

Bitcoin Applications

For companies like CEX.IO, the development of a mobile application can greatly increase their adoption rate and do for their platform what mobile applications have done for other exchanges. It also helps add an extra layer of credibility to the platform, since it shows the company has enough capital to invest in developing an application for mobile.

Setting up these applications has become so easy that it can be fully integrated mere minutes after being downloaded. The CEX.IO mobile application allows for much of the functionality of the regular platform, but without any of the downsides of being stuck in one place or on one computer. Adoption rates tend to increase as the switching costs decrease, and that’s exactly what is likely to occur when users have the ability to analyze market data, monitor price changes, place and cancel orders, and deposit Bitcoin. Also now you can add your payment card inside the app in order to sell and buy bitcoin there.

Another interesting trend that has surfaced within the Bitcoin world is the small services that will pay you in Bitcoin for completing a task or adding value to the platform in some way. For example, you have the startup 21 which pays you in Bitcoin in exchange for reading emails you receive on the service. This places a value on your time so you aren’t constantly giving up attention to emails in exchange for nothing.

Another mobile application which is receiving a lot of attention is Brave. The application allows users to pay to have all ads removed from their browsing experience, but more enticing is the setting which pays you when you opt in to view any of the Brave sanctioned ads. These are two examples of companies that have taken the users’ preferences into account just as much as they’ve taken those of advertisers’, and it seems to be a much more sustainable and symbiotic system than was previously present.

Bitcoin Wallets

There are two different options for mobile applications that decide to go the Bitcoin route. First, they can do what most of the previously mentioned apps did and integrate Bitcoin as a payment option at checkout. Or if they want to get deep in the details, they can develop a mobile wallet. A mobile wallet is basically a Bitcoin storage medium, which can use money transfer systems to engage in transactions.

This wallet application allows you to make and receive transactions in Bitcoin, but it also lets you view your transaction history and current balance. These two features are key for proper operation in the blockchain ecosystem. Because of the level of decentralization present with Bitcoin, your transaction history and balance become key for ensuring that your information is properly synchronized with the blockchain log. Two of the most promising wallet applications are Coinbase and Trezor.

The crazy thing about digital wallets is that much like a physical wallet, they can be stolen or lost. If you can’t find the “wallet file”, you lose the money that was stored in it. As overly simplistic as this sounds, it is completely possible and serves as another example of how complex technology can have simple problems. These are the costs that come from having an anonymous wallet in a decentralized ecosystem. Problems like being able to lose your digital wallet are why Bitcoin has been mostly relegated to those who have high technological capabilities and interest. Eventually it will start to work its way towards the mainstream, but it might take more work on these technology problems before that is the case.

Websites Adopting Bitcoin for Payments

What has been the most surprising about Bitcoin is how quickly major companies allowed it to be used as a payment option on their websites. For example, it is possible to pay for your flights on the Expedia mobile application using Bitcoin, which is not something most economists expected for years.

For companies not yet comfortable with the idea of holding Bitcoin or using Bitcoin payment processors like Spare, there is the option to use a Payment Service Provider (PSP) which will convert Bitcoin into their desired currency. Coinbase is a good example of a PSP that has become a big player in the Bitcoin ecosystem as it facilitates the quick transactions necessary to protect companies from exposure to fluctuations in the cryptocurrency.

Overall, Bitcoin has been quick to spread into the mobile ecosystem. People are already extremely comfortable using their phone for other banking purposes, and as Bitcoin is accepted into the mainstream it will get to piggyback on the mobile trend as well. It is completely plausible to think we will be able to have our phones use Bitcoin to pay for goods at stores in the near future. People enjoy the freedom of using it too much, and it is being adopted so quickly, that its omnipresence is undeniable.