2014 certainly looks like becoming the year of the Bitcoin. In a move likely to set a precedent for future such collaborations, the Sacramento Kings has become the first major sports team to accept the Bitcoin, an online currency that has gained tremendous popularity of late.
The Bitcoin has had a rather controversial history since its introduction several years ago and continues to evoke mixed emotions by consumers and financial institutions alike. No one is certain which individual or group introduced this virtual currency but credit seems to go to one Satoshi Nakamoto, a ghost name with no additional information attached to it.
Shaky Start
Because of its effortless use as a currency easily trafficked by drug dealers, the Bitcoin got off to a shaky beginning but has since assumed a more tolerable stance and is accepted as a means of payment by more and more vendors, both on and off line.
Since Bitcoins are virtual, all transactions must be made through a processing company which converts the Bitcoin to whatever currency is desired and then transfers the funds to the receiving party. Should there be a need for additional Bitcoins, they can be ‘mined' using complex mathematical software. However, the originators of the Bitcoin have indicated that once that currency has run out, there will be no further production of the ‘coins.' This may create a situation where speculators will hoard the Bitcoins, adding to the increase in its already inflated price.
Be that as it may, the Bitcoins are here to stay for a while and with more and more popular companies announcing their acceptance of the currency, the fluctuations in the Bitcoin marketplace don't seem to be dampening the use of the Bitcoin for a variety of consumers' needs.
Seamless
The recent collaboration with the Sacramento Kings is only one of several recent deals contracted between major sports teams and financial products. Kings' owner, Vivek Ranadivé, has always exhibited an interest in advancing technology for his team and recently introduced a business philosophy called "NBA 3.0" which emphasizes community affiliations and globalization. According to Kings President Chris Granger, "?we think Bitcoins are yet another way to make the experience for (our) fans more seamless and hassle free."
As such, the Kings are partnering with BitPay Inc., an Atlanta company which will process all of the Kings' Bitcoin transactions, converting most of the Bitcoins to dollars while retaining some as Bitcoins for future use.
The Kings have already begun to accept Bitcoins at the Kings Sleep Train Arena and will be offering its fans the ability to pay online with Bitcoins for team merchandise and tickets by March 1.
Despite the instability of the Bitcoin as a currency, the use of the Bitcoin by one of NBA's major teams is viewed as a progressive move by Sacramento businesses which see the use of the currency as a smooth approach to increased sales.
The Sacramento-Bitcoin cooperation is a win-win deal for both parties, offering much needed acceptability to the little understood Bitcoin while boosting the team's reputation as an advanced high tech conglomerate.