Despite its recent (and dramatic) drop of more than $700 within a 24-hour period, bitcoin remains a solid investment for most tech hounds, and according to industry expert Sonny Singh – the chief commercial officer of Bit Pay – the currency could also make a great marketing tool for “hip” companies.
Bit Pay Exec: These Companies Don’t Understand Bitcoin
Singh says that he works regularly with all these companies that put millions of dollars into their advertising campaigns, whereas all they’d have to do to garner customers is accept bitcoin. He’s confident the tech community is becoming more interested in the cryptocurrency and is eager for opportunities to work with it, but that these companies simply aren’t catching on.
I talk to cool, hip tech brands who are spending all this money on marketing right now. All they need to do is accept bitcoin to get new customers. The whole crypto community, which has been valued as high as $800 billion, would know about these brands. [They] would probably be doing about five to ten percent of their online sales in bitcoin, and of that five to ten percent, nearly 60 percent of those customers will be first-time customers.
Unfortunately, accepting bitcoin – or any cryptocurrency as a means of payment – is still subject to many rules and speculation, and so long as volatility exists, many of these companies are not going to examine bitcoin or view it as a reasonable form of money. He says:
It boggles my mind when I talk to these mid-tier brands and they don’t even know about [bitcoin]. These are cool tech kids that are running these companies, backed by VCs, and they don’t even understand how bitcoin works.
Marketing Is Useless Without Customers
He says that major tech companies like Microsoft, New Egg, ATT and Dish Network all accept crypto payments, but that very few small Silicon Valley startups do, which he believes is a big mistake:
I get snail mail every day from new startups trying to get me to buy their sleeping mattresses or eyeglasses when they could increase their sales dramatically by accepting bitcoin. They’ll say they’re too busy or that they can’t hold bitcoin on their balance sheet, and we tell them they don’t have to. They can settle in U.S. dollars the next day. It is still not interesting to them. They’re going to get [potentially millions] in new revenue per year. Do they care about that? Still, they say it’s not a fit for them right now or they’re too busy.
The good news is that not all companies are taking this route. According to Singh, Bit Pay processed more than $1 billion in BTC transactions in 2018, beating out its 2017 record. In addition, roughly 53 percent of these transactions occurred at the hands of new customers.