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Bitit - A New Paris Based Bitcoin Start-Up!
Originally posted 26 Mar 2016 by
Bitit a Paris-Based Startup Lets People Buy Bitcoins from 100,000 Physical Stores around the World Despite an uncertain future of Bitcoin, Bitit, a startup based in Paris has developed a service that makes it easier for the average people to get Bitcoin. The CEO and cofounder of Bitit, Nicolas Katan says that the goal of the company is to solve two of the biggest issues with Bitcoin: fraud and accessibility.
He said that the company has the vision of democratizing Bitcoin for everyone. He said that Bitcoin is a great technology, but the problem that it has is that it’s difficult and complicated for the people to access.
Debut of Bitit comes amid huge debate within Bitcoin community regarding how the Blockchain technology that is behind this virtual currency should be evolved so that the system continues to expand. Some people are questioning the future of the technology and others are referring to as revolutionary financial system.
Nicolas Katan thinks that the problems with the digital currency will be solved. He strongly believes in the value proposition which made Bitcoin popular: namely, that Bitcoin eliminated the need of using a credit card company or a bank. Card companies and banks can charge fee for moving the money around. Bitcoin allows for much more efficient control and management of money.
However, fundamentals of the system can be complicated for non-technical people. And as the fraud rates are high, many exchanges charge people up to 20% as Bitcoin fees. Enter Bitit.
In order to solve these problems and to extend Bitcoin’s potential benefits to everyone, a new startup Bitit now let’s ordinary people walk in to physical stores and buy Bitcoin with cash. Bitit also allows the online purchase of Bitcoin through company’s website.
Soon people will be able to buy the electronic gift cards or plastic vouchers to give as gifts. Currently the company is selling Bitcoin gift cards as part of trial at the La Maison du Bitcoin located in Paris. La Maison du Bitcoin is meetup place for th4e people who are working different projects that are related to Bitcoin
The key to the process of Bitit is that the company has arrangements with different partners to buy the virtual currency on regular schedule. Currently many of the users have reported that it takes a week or even more for Blockchain to process transactions. This delay is eliminated by Bitit for the users by having Bitcoins ready to deliver within 10 minutes.
Here, the trick are the algorithms that Bitit has written for minimizing the risk profile by balancing the rate at which the company buys Bitcoin and rate at which the customer buy them.
Also, the system of Bitit is designed such that it minimizes the chances of fraud. You can buy Bitcoin up to $25 without the need for any paperwork. After that you can buy Bitcoin up to $500, but you must some documents in order to confirm your identity in system.
According to Katan, the company manages the risk through their value generation. He mentions that whenever someone says credit card and Bitcoin, one immediately thinks of fraud.
Anyone who wants to gift, receive or buy Bitcoins using Bitit still must have Bitcoin wallet. The company hopes that it will eventually develop a wallet of its own, but right now, the users have to use third-party solution.
Here, it is worth mentioning that Bitit isnt the only company that is trying to tackle the issues with Bitcoin. For example, ATM machines have been deployed in Europe, Canada and the US by BitAccess. These ATM machines let people receive Bitcoins by depositing cash. The company recently made a deal with Flexepin, another company which allows people to buy vouchers for the online purchases. This new partnership will let people to buy the vouchers of Flexepin by using BitAccess at about 6,000 different locations in Canada.
Across the border, in US a company by the name of LibertyX has similar strategy. According to LibertyX they now have 19,000 partner stores in the country. People can purchase Bitcoin vouchers from cashier at these stores.
Bitit says that its available in 100,000 stores as a result of its deal with Neosurf. Just like Flexepin, this company Neosurf also makes the vouchers which let anyone use cash for buying special gift cards that one can use for making purchases on Internet. Neosurf is used more widely and this has given Bitit access to 100,000 partner stores of Newsurf.
It is a great jump-start for small startup like Bitit that has not yet raised the first round funding. Bitit was formed with support of startup incubator, Paris’ The Family, last year. This startup incubator gave $20,000 to Bitit so that the company can start. So far, the company has processed Bitcoin transactions having worth of about $60,000.
Katan says that he is presently in process of raising the first official round of the venture capital of Bitit so that is able to expand the team which presently has three members.
He said that Bitit is going to have a lot more transactions, and the company is growing rapidly. He further said that the company needed to be ready in order to continue adapting the fraud system and to continue winning the trust of people.
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