Online Store Aims to Prove Value of Bitcoins

April 8, 2013

The value of Bitcoins, the virtual online currency launched in 2009, has surged more than $20 since the beginning of February in what many believe is a response to the banking crisis in Cyprus. What that means for investors in and users of Bitcoins is unclear, but the popularity of the online payment method is unquestionably on the rise. The range of merchants that accept Bitcoins is expanding and, recently, an online electronics store that accepts only the virtual currency opened its virtual doors.

Bitcoinstore sells electronics at wholesale prices and is intended as a “proof of concept” to show online retailers like that bitcoins are a legitimate payment option and one that they need to acknowledge and accept, according to Jon Holmquist, head of marketing for Bitcoinstore.

“We are trying to provide them motivation by taking away their customers,” Holmquist said. “This is the first time a store has been able to provide a proof-of-concept of how much people can save with bitcoin.”

The store’s goal is to move $850,000 of merchandise between April 1 and June 30. As of 9 a.m. today, the store has achieved more than $136,000 in sales. The average order size on Bitcoinstore is about $400.