However, recognized experts believe that this payment unit enjoys particular popularity.
According to CoinDesk magazine, in late December 2015, one bitcoin was worth about $400-500. If you are interested in bitcoin trading, visit this site https://meta-profit.app/.
So far, there are no official statistics on bitcoin users in Russia, but recognized experts believe that this payment instrument is gaining particular popularity.
6 Ways How bitcoin benefits the Russian fashion industry
Bitcoin transactions are protected by encryption, and when you make a purchase, part of the bitcoin is transferred directly to the service provider. At the same time, another is kept in an electronic wallet that can also be used to pay for other services.
After confirmation of the transaction by the participants (usually within 10 minutes), the money is moved to the recipient’s wallet.
At the same time, both parties remain anonymous. The absence of intermediaries makes bitcoin suitable for making transactions between individuals who are strangers to each other.
2. Reduce costs
The use of cryptocurrency allows you to save on commissions for international transfers, which in many cases make up 10% of the order value.
In addition, with the help of cryptocurrency, you can make purchases abroad without attracting additional charges for international transactions.
3. Transaction processing speed
When ordering clothes from foreign suppliers, the buyer often faces the fact that it is challenging to create a reliable payment system because of fraud prevention systems and long delays in transaction approval due to bank commissions.
Cryptocurrency is much more suitable for such purchases.
4. Independence from changes in exchange rates
The prices of products expressed in bitcoin are recalculated daily based on the current rate of digital money.
Thus, when making a purchase using cryptocurrency, you don’t have to worry about the fluctuations of the cost of cryptocurrency, which is especially important when making international purchases.
5. Availability of platforms for online sales
Several sites operate in Russia, selling your goods or purchasing foreign products using cryptocurrency.
For example, popular social network VKontakte has a special section, “Bitcoins,” with sections devoted to clothes and other sale items.
It is also possible to place goods for sale on sites like eBay or OLX, but you will need to convert the price of the goods into rubles using the service Ychanger.
6. Simplified international payments
At the same time, cryptocurrency payments are carried out fairly quickly. As a result, it is even possible to reduce costs for international transfers compared to traditional money transfer schemes in some cases.
4 Negative effects of bitcoin on the fashion industry of Russia
1. Lack of legal regulation
The Russian government has not yet passed the law on digital currencies; therefore, using them entails certain risks.
For example, sometimes, there is no way to prove that you made a purchase or do not meet the warranty service requirements.
Digital currency is a highly volatile asset that can quickly lose or gain value.
The bitcoin rate is not tied to any real currency, and it is impossible to predict what factors will affect its further course.
3. Risk of fraud
Digital currency transactions are irreversible, so if you transfer funds to a fraudulent site, there’s no way to get your money back.
In addition, there is no regulator for this market; thus, third parties do not assume responsibility for the safety of your money.
4. Risk of loss
The funds you keep in the electronic wallet are stored only on the computer and can be lost if hackers break into your account or delete the file with purse data.
5. Lack of support
Russian online stores, even the most prominent commercial platforms like AliExpress, do not accept payments in bitcoin yet.
This is because cryptocurrency still has no legal status in Russia, and therefore transaction legislation does not cover its use by businesses or individuals.
While bitcoin has many advantages over fiat currencies, it also has flaws. The main problem with digital currency is that there are still no clear laws regulating electronic money transactions in Russia.
This leads to the fact that every transaction, even if it’s completely legal, can be considered suspicious or risky by credit organizations and banks.
Reference Link: https://www.reuters.com/