How has bitcoin affected the tourism sector of Birmingham?
When bitcoin was first introduced, its price surged from $0 to $1,242 in just a few years. So naturally, this caught the attention of many investors who saw it as an excellent opportunity to make quick money. For more info, check this guide to creating a shared Bitcoin wallet.
Then, however, its price started to fall in 2014 and reached its lowest point in January 2015, when it was worth only $173.
The tourism sector of Birmingham is one of the sectors that have started to accept bitcoin as a payment method.
The Birmingham Hippodrome manager, a theatre in the city, said that they decided to start accepting bitcoin because they wanted to be at the forefront of new technologies. He also said they had not seen any adverse effects from accepting bitcoin as a payment method.
8 Ways how bitcoin affected the tourism sector of Birmingham
- It gave a new impetus to the tourism sector as bitcoin payments are fast and easy.
- It helped increase the footfall of tourists in the city center.
- The hotels, restaurants, and other tourist destinations started accepting bitcoin payments, making it more convenient for tourists to make payments.
- The tourists felt more secure as they could use bitcoins to pay for their expenses.
- It helped in generating new employment opportunities in the tourism sector.
- Bitcoin payments are transparent, which helps build trust among tourists.
- The city became more popular among tourists due to the availability of bitcoin payments.
- It helped increase the overall revenue of the tourism sector in Birmingham.
8 Negatives of bitcoin that affected the tourism sector of Birmingham
- Bitcoin’s volatile value has made it challenging to price goods and services in a way that would be attractive to tourists. For example, a hotel might want to charge $100 per night but if the value of bitcoin fluctuates between the time the reservation is made and the time the customer arrives, that price may no longer be accurate.
- Bitcoin is often associated with criminal activity, creating a negative impression of the city. For example, tourists might be hesitant to visit Birmingham if they think it is a hot spot for drug trafficking and other illegal activities.
- The relatively few businesses that accept bitcoin as payment can make it difficult for tourists to find places to spend their money. This can be frustrating, especially if the tourist is unfamiliar with the area.
- Bitcoin has been linked to several scams and thefts, creating a negative impression of the city. For example, in January 2018, a bitcoin trading company called CoinDash had $7 million stolen from its account during an Initial Coin Offering.
- Bitcoin mining can be incredibly energy-intensive, which has led some people to argue that it is terrible for the environment. For example, a report by the University of Cambridge showed that the annual energy consumption of bitcoin mining was comparable to the entire country of Ireland.
- The anonymous nature of bitcoin can make it challenging to track down criminals who use it for illegal activities. This can be frustrating for law enforcement officials and the general public.
- Bitcoin is not regulated by any government or financial institution, which means that there is a risk that it could become worthless overnight. For example, in January 2014, the value of bitcoin plummeted from $1,200 to $500 after the Chinese government announced that it would not support the digital currency.
- Bitcoin is still a relatively new technology, and there is a risk that a better alternative could eventually replace it. For example, in March 2017, JP Morgan Chase announced that it was developing a new digital currency called “JPM Coin,” backed by the US dollar
The volatility of bitcoin has caused scepticism among people, especially those who are not familiar with it. This has led to some businesses and organizations shunning it as a payment method.
Despite the negatives, bitcoin has had a positive impact on the tourism sector of Birmingham. The city has become more popular among tourists due to the availability of bitcoin payments, which has helped increase the overall revenue of the tourism sector.
While there are some risks associated with bitcoin, the digital currency will likely continue to grow in popularity in the future.