UK Provider Accepts BitCoin for Hosting Accounts
February 19th, 2013 By: Jason Verge
UK provider Hosting.co.uk is accepting a very non traditional payment method called BitCoin as payment for hosting accounts. BitCoin is a startup digital currency that eschews traditional banking. It’s somewhat unusual for a web host to accept it as currency, but this potentially opens it up to a wider international audience, as it simplifies international sales. BitCoin also adds a level of security and privacy to the transaction, so it might attract the types of customers that prefer to remain private as well.
On one hand, it makes it easier for customers of all sorts to pay. On the other hand, payment quality and fraud control has always been a meaningful cost of business for hosts, and this would seem to be hard to police and manage with BitCoin.
“We understand that many potential customers still shy away from digital payment methods, fearful of identity theft or fraud,” said Hosting.co.uk’s Frederick Schiwek. “That’s why Hosting.co.uk has moved forward with BitCoin as an alternate payment method. Not only is it faster and less costly than most bank-mediated transactions, it’s more secure as well. We expect to see a surge in clients from around the world thanks to the globalizing effects of digital currency.”
What’s a BitCoin?
BitCoin is a decentralized, person-to-person economy of digital coins. The all-digital network is not backed by any government or bank, so there are no exchange rates. The BitCoin network is built on open source code, so anyone can take a gander into how it functions. It basically functions like most online banking and payment systems, with the big difference being that it’s a virtual currency.
Hosting.co.uk’s main data center is a Tier IV facility in the midlands of England with multiple redundant systems. Hosting.co.uk’s target market includes everyone from individuals to small- and medium-sized businesses. The company says BitCoin will be most appealing to individual users, especially those located outside of England or continental Europe.
Recently, Hosting.co.uk partnered with MEGA cloud storage service as an authorized reseller. MEGA is the somewhat controversial provider of turn-key data storage founded by Megaupload’s founder Kim Dotcom. Given the roots, the security for MEGA seems high, and it has garnered quite a bit of interest. Hosting.co.uk clearly has a comfort-level with non-traditional offerings here