As we write this report a coffee lover located at some point on the globe, could be paying for his or her coffee using Bitcoin. The crypto world can consider this to be a positive sign, it does increase the possibility of other businesses accepting cryptos in the near future. But what exactly does the coffee giant gain by doing this? This is an interesting question as, few businesses would be interested if they got no benefit.
For those of you who are not very familiar with cryptos, here is a short explanation explained with minimum technical jargon. Cryptos are normally traded on crypto exchanges, traders buy and sell them hoping to make a profit.
When a business decides to accept a crypto as a payment option, the business would be getting cryptos from its clients. This to pay for services or products provided by the business. Since cryptos normally trade on crypto exchanges, the forces of demand and supply would influence their price. Technically the business could hold cryptos that it receives and then, trade them on the exchange. However doing this could mean that, the business might suffer losses if the price of the crypto goes down.
In the case of Starbucks it does seem that, cryptos received would be immediately converted to cash - this via a third party service provider. This obviously means that, Starbucks does not intend to indulge in speculative activity with the cryptos that it receives.
Speaking to the Glitzkoin tech team we learnt that, the leading coffee business was probably trying to woo high tech coffee lovers. The idea that a customer would opt to pay using cryptos, is probably a little futuristic at this point of time. However increased interest in cryptos could, result in a large number of people having funds in their crypto wallets.
Glitzkoin the first diamond blockchain to be promoted by a diamond veteran, has also linked itself to a partnership that could significantly increase demand for the GTN token. An announcement made in early 2019 revealed that, the Glitzkoin GTN token would soon be accepted as a mode of payment on the Myticket.asia ticketing portal.
The Glitzkoin - Myticket.asia Partnership is a bit different from the Starbucks plan. Bitcoin (in some form) that Starbucks plans to accept, is not a crypto launched by Starbucks. The GTN token on the other hand is launched, as part of the Glitzkoin project. Increased usage of the GTN crypto would have a favorable impact on its price.
Businesses might need to provide some incentives that would, encourage clients to pay using cryptos. There would be a cost tagged to this effort and every business, would try to figure out the ROI of such an activity.
Could it be that, Starbucks is using this arrangement to evaluate, the possibility of launching its own crypto in the near future. This is surely a possibility and only time will tell. The crypto world should be glad with the Starbucks effort - it would help bring technology closer to real world business.
