SVB Survey: 63% of Marketplaces Not Ready to Accept Bitcoin

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SVB Survey: 63% Marketplaces Not Ready to Accept Bitcoin

ForexMinute.com – Silicon Valley Bank’s (SVB) new survey recently put Bitcoin in a bad light when it concluded that 63% of marketplace founders and executives wants to avoid accepting the cryptocurrency. The data was collected from over 140 private companies that recently attended the SVB’s Marketplace Mashup on October 14th this year.

Titled ‘The Outlook for Marketplaces’, the survey was conducted to understand the hurdles and opportunities from the perspective of marketplace insiders. While only 7% of the respondents believed regulatory hurdles as a barrier to their success, a majority of them rejected digital currencies as any kind of problem-solver.

The whole survey comes as a great shock to those Bitcoin supporters who believe that the cryptocurrency technology is an answer to the unfair financial regulations. But when the business houses themselves do not consider such financial laws a threat to their growth, this whole episode makes Bitcoin look like a black sheep (or white crow) of the family.

Earlier Surveys Sing the Same Song
Just a few weeks back, software research firm Software Advice also conducted a survey among over 400 small businesses in the US, to better understand whether they will accept Bitcoin in the future or not. Almost half of them responded with a negative answer, citing multiple reasons for their dissatisfaction with the cryptocurrency – most of it being the lack of proper information.

Massachusetts Division of Banks (MSB) also published a survey in late-August that revealed that many consumers in the US are unlikely to buy Bitcoin or any kind of digital currency.

Age Gap a Factor?
The surveys were conducted mostly among the businesses whose owners were likely to be over 40 years old. The MSB survey accepted that the young-guns were more enthusiastic towards at least trying Bitcoin, while others simply rubbished it because of its complex nature. Though, the same factor cannot be applied on the SVB survey, which included veterans from the leading marketplaces all across the globe. Indeed, their negative vote had different reasons.

Price Volatility, Scams, Regulation an Issue?
Indeed! Most businesses simply wants to throw away Bitcoin as it comes with extreme price volatility. Even when multiple payment processors are ending the volatile quotient for these merchants, there are concerns like hacking attempts, scam exchanges, and strict regulatory models that are keeping people away from trying this new payment technology.

Conclusion
Even with its perks, Bitcoin is a risky industry for a regular Joe. Why leading marketplaces wants to back-off this technology is simply because users want the same. The root problem lies in less user adoption. To make sure that the industry goes, Bitcoin veterans will have to find a way to attract non-technological members of the public to know and understand the cryptocurrency model in “Basic English”. If user adoption increases, so does the merchant adoption. In the present climate, it is vice versa.

Bitcoin has potential. In time it will be big.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com