Claimed as an Alternative Payment Method... Bitcoin with No Payment Cases

Bitcoin Created by Satoshi Nakamoto as an Alternative Payment Method
Payment Difficult Due to Volatility... People Are Rather Amazed That It Is Usable for Payments

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] "Do not pay with Bitcoin."

At a Chinese restaurant in Seongbuk-gu, Seoul, although it was indicated that Bitcoin payment was possible, they did not accept Bitcoin payments. The reason was the notorious volatility of Bitcoin. The restaurant owner, Mr. Kim, said, "Even I think Bitcoin has no monetary value," and added, "A customer who paid 30,000 won with Bitcoin in the past recently complained that it was as if they had eaten worth 1,000,000 won." Unlike the Bitcoin frenzy in 2017 when six people per week paid with Bitcoin, this year not a single person has attempted it.

Four years have passed since the 2017 frenzy, but Bitcoin still has not settled into everyday life. According to CoinMap, a site that guides businesses accepting Bitcoin payments, 129 businesses in Seoul, Incheon, and Gyeonggi areas accept Bitcoin payments, but due to large price fluctuations, many businesses themselves gave up on accepting payments. There were also cases where customers had to turn away because the guidance on businesses accepting Bitcoin payments was inadequate. An absurd case occurred where a domestic cryptocurrency exchange that had partnered disappeared due to embezzlement charges, causing the service to be terminated.

In 2009, an anonymous developer, Satoshi Nakamoto, presented the purpose of Bitcoin's creation and its implementation system through a paper. According to the paper, Bitcoin was created to enable online payments without going through financial institutions. Proving this, Bitcoin's price rose whenever Tesla established a Bitcoin payment system or when the overseas simple payment company PayPal developed a cryptocurrency payment platform, acting as positive news.

Bitcoin Payments Still Difficult... Some Services Discontinued Due to Vulnerability to Illegal Activities

However, it was hard to find cases of Bitcoin payments in everyday life. A brunch specialty store located in Itaewon, Seoul, explained that Bitcoin payment is still possible but no one has actually used it. A restaurant official said, "Last year, there was little interest in cryptocurrency, and this year no one has paid with Bitcoin either," adding, "Some people were still surprised to learn that Bitcoin payment was possible."

There were also places introduced as Bitcoin payment businesses that responded as if hearing it for the first time. On cryptocurrency-related sites, the hotel ‘The Designers’ located in Jung-gu, Seoul, is introduced as a place where Bitcoin payment is possible. However, upon direct inquiry, they were not only unaware of Bitcoin payment but also the fact that it was possible. A hotel official guessed, "I didn't know that accommodation fees could be paid with Bitcoin," and "It is presumed that it was collectively guided because Bitcoin payment is possible on other platforms."

Some services were discontinued due to the vulnerability of cryptocurrencies to illegal activities. Gotu Mall in the underground shopping area of Seoul Express Bus Terminal started Bitcoin payment services in partnership with domestic exchange HTS Coin from December 2017. However, the service disappeared after three HTS Coin officials were arrested in May 2018 on charges of embezzling investors' money. The HTS Coin officials were convicted in 2019. A Gotu Mall official said, "At that time, for promotional purposes, all Gotu Mall stores started Bitcoin payment services," adding, "Less than a year after starting the service, embezzlement charges surfaced, and we had to abruptly terminate it."

Professor Hong Ki-hoon of the Department of Business Administration at Hongik University explained, "It has already been proven that payment with Bitcoin is impossible and will remain so," adding, "Bitcoin lacks both functionality and symbolism to threaten fiat currencies such as the dollar or won."