Stephen Silver, the CEO at Stephen Silver Fine Jewellery has disclosed that after four years of incorporating Bitcoin, the transactions via the cryptocurrency have outdone the ones by credit cards and are now responsible for nearly 20% of the sales at the store.
“Cryptocurrency has surpassed the volume of retail credit-card purchases in the company in a very short time period. We’ve created revenue that the company would not even enjoy without being able to accept cryptocurrency. Large sums of money are where we are finding cryptocurrency to be a huge advantage.”
With cryptocurrencies making their way into industries such as jewellery and real estate, investors of a property development project in Dubai were flabbergasted at the decision of the project managers to take their dues in Bitcoin for the sale of various spaces in the project, in 2017.
Lingerie magnate Michelle Mone and her billionaire business partner said that the transaction of a $327 million property will be primarily taking place in Bitcoin. In a few weeks, roughly 50 luxurious apartments were sold in Bitcoins where the buyers had to first convert their fiat currency into the prominent cryptocurrency.
“We allocated 50 out of 1,300 developments. We’ve sold all out. Some bought ones and twos, and one individual bought ten,” said Mone, who added that Barrowman decided to accept cryptocurrencies because he was frustrated Bitcoin was not being used enough by retailers and businesses.
Bitcoin is preferred over bank transfers in the jewellery and the real estate industry because it is cheaper, more efficient and instant, unlike the latter which take three-five business days.
Garrick Hileman, an economic historian at the University of Cambridge and the London School of Economics, in an interview with CNN, said that it is beneficial to use Bitcoin for large transactions as the banks can charge anywhere between $1000 to $50,000 on the transaction of a value of $10,000 to $1 million.
“If you’re only paying a $2 transaction fee on a piece of art that’s worth tens of thousands, the fee is basically zero. But if you’re paying 2 or 3% on a piece of art of that value, then the numbers can go up quite a bit,” Hileman said.
It is far more advantageous for the Jewellers to operate in Bitcoin as they now don’t have to pay the banks the 1.5% to convert the reserve currencies.
Agreeing with the billionaire real estate developer Doug Barrowman, Silver also said that as supporters of the sector, they have been monitoring the growth of the market and are satisfied with the increasing maturity of the same.
Because Stephen Silver Fine Jewelry is based in the Silicon Valley, the cradle of innovation, they have had the ability to monitor the development of blockchain technology since 2008. They felt it had matured to the point that the technology could be brought into the store in 2014.