A financial technology company based in Brisbane recently made an announcement that illustrates the current state of cryptocurrency growth. Although the company has an unusual name, the Bitcoin service it offers allows consumers to pay bills with Bitcoin.
Startup Aims Large
The name of the Australian tech startup is “Living Room of Satoshi,” which has been around since 2014. The name is based on the pseudonymous identity of the person behind the blockchain and Bitcoin protocols, Satoshi Nakamoto. According to an interview with financial news website Business Insider, the company was founded as a Bitcoin payments service that could introduced the controversial cryptocurrency to a wider audience. As part of its business strategy, the Living Room of Satoshi opted to offer a platform for remittances and Bitcoin payments that can be used to settle monthly bills such as credit cards, electricity, wireless data, school tuition, and internet service.
Cryptocurrency growth has not been as fast as developers initially hoped for, which is why a Bitcoin service such as Living Room of Satoshi is a promising venture that underscores the potential of digital currencies. In the few years that the company has been managing Bitcoin payments, nearly $5 million have been handled. Of course, there are also many risks associated with bitcoin, and using the cryptocurrency to pay your bills could lead to unforseen issues. The fact that that the number of bitcoins will be capped at 21 million means it could never be a mass alternative to traditional payments.
Although Living Room of Satoshi is primarily a Bitcoin service, it is important to note that it also offers transactions in other digital currencies such as Dash. The company has also tested working with Ethereum, but Bitcoin remains the primary focus. The Australian banking industry and its government regulators have been gradually welcoming digital currencies even as other nations such as the United States are still suspicious of cryptocurrency Growth. Cryptocurrencies using blockchain technology such as OneCoin are next.
The fact that Living Room of Satoshi is now processing more than $100,000 in household bills each week can be viewed as a good sign for fans and developers of digital currencies. However, bitcoin is a decentralized system that will always be susceptible to attack. Living Room of Satoshi has been officially handling transaction for 16 months, and one of the factors that has contributed to its early success is that service fees are not charged to customers.
Satoshi remains anonymous
The business model followed by Living Room of Satoshi consists of profiting from arbitration and spreads in the daily currency exchange rates. The company currently boasts a little over 1,000 registered users, but the majority of people who use the service do so without registration; this is possible due to blockchain features that register all Bitcoin transactions regardless of identity.
Even though Australia is one of a handful of countries that have been more accepting of Bitcoin as a valid currency, tech startups should keep in mind that taxation is currently higher for companies that operate digital currencies. Living Room of Satoshi is hoping that the Australian government will soon reduce this caveat. One of the next steps for the company is to expand into overseas markets; the first target would be New Zealand.
In the end, Living Room of Satoshi is definitely a success story in terms of efficient digital currency adoption. The company hopes to reach the $10 million mark by the end of 2017.