This week’s reading centered around Bitcoin Economics.  For this week’s research paper, search the Internet and explain why some organizations are accepting and other organizations are rejecting the use of Bitcoins as a standard form of currency.  Your paper needs to identify two major companies that have adopted Bitcoin technology as well as one that has refused accepting Bitcoin as a form of currency. Be sure to discuss each organization, how they adopted (or why they won’t adopt) Bitcoin, and what recommendations you have for them to continue to support Bitcoin (or why they should support Bitcoin). Your paper should meet the following requirements: • Be approximately 3-5 pages in length, not including the required cover page and reference page. • Follow APA guidelines. Your paper should include an introduction, a body with fully developed content, and a conclusion. • Support your response with the readings from the course and at least five peer-reviewed articles or scholarly journals to support your positions, claims, and observations.  The UC Library is a great place to find resources. • Be clear with well-written, concise, using excellent grammar and style techniques. You are being graded in part on the quality of your writing.

Title: The Acceptance and Rejection of Bitcoin as a Standard Form of Currency

Introduction:
Bitcoin, the first decentralized digital currency, has gained significant attention since its inception in 2009. While some organizations have embraced Bitcoin and integrated it into their payment systems, others have remained skeptical or outright rejected its adoption. This paper aims to explore the reasons behind the acceptance or rejection of Bitcoin by organizations, focusing on two major companies that have adopted Bitcoin technology and one that has decided against accepting it as a form of currency. By analyzing these cases, this paper will provide recommendations for organizations to continue supporting Bitcoin or reasons why they should consider supporting it.

Company A: Microsoft Corporation (Adoption):
Microsoft Corporation, a multinational technology company, adopted Bitcoin in December 2014 as a payment option for digital products and services. The embrace of Bitcoin can be attributed to several key factors. Firstly, Microsoft recognized Bitcoin’s potential as a decentralized, borderless currency, enabling fluid international transactions without the need for intermediaries. This aligns with Microsoft’s global business operations, allowing it to reach customers in various regions seamlessly.

Secondly, by accepting Bitcoin, Microsoft aimed to appeal to a niche market of technologically savvy individuals and digital currency enthusiasts. This move was seen as innovative and helped improve their brand image among tech-savvy consumers.

Furthermore, by offering Bitcoin as a payment option, Microsoft showcased its support for blockchain technology, the underlying technology behind Bitcoin. This move demonstrated their commitment to exploring and experimenting with emerging technologies, thereby strengthening their position in the technology market.

To continue supporting Bitcoin, Microsoft should expand their Bitcoin payment options to physical products, further diversifying their customer base. Additionally, investing in research and development to improve the integration of Bitcoin into their existing systems would enhance payment efficiency and security.

Company B: Overstock.com (Adoption):
Overstock.com, an online retailer, started accepting Bitcoin payments in January 2014, becoming the first major retailer to do so. This move stemmed from several reasons. Firstly, Overstock identified the potential cost savings associated with Bitcoin transactions, as the fees involved were significantly lower than those imposed by credit card companies and other intermediaries. This reduction in transaction costs positioned Overstock as a more cost-effective option for customers, potentially increasing sales.

Secondly, by accepting Bitcoin, Overstock aimed to differentiate itself from competitors and appeal to a niche market of early Bitcoin adopters. This was a strategic decision to project themselves as a forward-thinking company and attract a tech-savvy customer base interested in cryptocurrency.

Additionally, Overstock’s acceptance of Bitcoin aligned with the company’s underlying philosophy of financial freedom and decentralization, resonating with customers who shared similar values.

To further support Bitcoin, Overstock could consider offering discounts or exclusive deals to customers who use Bitcoin as a payment method, incentivizing its use. Moreover, investing in customer education about the advantages of Bitcoin as a secure and private payment method would help drive wider adoption and acceptance.

Company C: Walmart (Rejection):
Walmart, a multinational retail corporation, has not adopted Bitcoin as a standard form of currency. Walmart’s decision not to accept Bitcoin can be attributed to several key reasons. Firstly, the volatility of Bitcoin’s value presents a significant risk for a company of Walmart’s scale. The fluctuating value of Bitcoin could create uncertainty in financial forecasting and introduce potential losses if the value were to plummet.

Moreover, Walmart’s extensive operations and large customer base necessitate robust payment infrastructure capable of handling high transaction volumes seamlessly. The current scalability limitations of Bitcoin and its relatively slower transaction times do not align with Walmart’s requirements for efficient payment processing.

Lastly, Walmart’s customer demographic, which includes a significant proportion of low-income individuals, may not have widespread access to or familiarity with Bitcoin. This lack of user adoption among Walmart’s customers limits the practicality of accepting Bitcoin as a payment method.

For Walmart to consider supporting Bitcoin, significant improvements in scalability, transaction speed, and stability would be necessary. Additionally, increased awareness and adoption of Bitcoin among the general population would need to occur for Walmart to cater to a larger customer base.

Conclusion:
This paper discussed the reasons behind the acceptance or rejection of Bitcoin as a standard form of currency by organizations, with a focus on Microsoft, Overstock.com, and Walmart. By analyzing these cases, it becomes evident that factors such as potential cost savings, appeal to niche markets, alignment with company values, scalability concerns, and customer demographics contribute to the decision-making process. To continue supporting Bitcoin, organizations must adapt to evolving technology, educate their customer base, and address any issues related to scalability and volatility. Only by doing so can they effectively leverage the potential benefits offered by Bitcoin as a standard form of currency.

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