Users of bitcoin tipping platform ChangeTip can now send tips in US dollars, a move aimed at capturing users who may be wary of digital currency.
Currently, ChangeTip's service – used across 12 social media platforms – denominates tips in bitcoin, or 'bits' (each worth 0.000001 of a bitcoin). However, in a statement today, the company said it is revamping its platform to support US dollar tips, a move that follows credit card support announced in July.
Nick Sullivan, founder and CEO of ChangeTip parent company ChangeCoin, said in a statement:
"While electronic payments are well-established for online purchases, the concept of empowering everyone on the Internet to express gratitude and appreciation for great people, content, causes and contributions using the change in their digital pocket, is unique to social media tipping."
In its release, ChangeTip cited survey results that indicate up to 76% of people won't use its service because of the digital currency. The remainder (24%) who do try it, it said, "don't feel safe or confident" sending it to friends. It did not disclose the methodology of its survey, nor its scale.
"People believe it's not real money, that it's volatile, and that they won’t feel safe using it," the statement reads.
To counteract this, the firm expressed its belief that US dollar users could be introduced to bitcoin as they tip.
"When tips are sent internationally, we will be converting USD to bitcoin, showing people the benefits of it as a global currency," the release states. "When people go to withdraw, they will see that bitcoin is far less expensive than USD to use on our platform as a form of value transfer."
The company did not provide details as to how users will be informed when their money is converted into the digital currency, or if US dollars could now be exchanged for bitcoin on its website. Users wishing to send dollar-denominated tips on the platform will need to first load their account with $25 via debit card.
A search on the FinCEN database indicates the company has registered as an MSB in all US states.
Together with the announcement, ChangeTip also revealed it will launch a new product designed to support content creators.
While ChangeTip already offers a tipping widget available on blogging platforms such as WordPress, Tipworthy aims to be a content curation offering where users can post links to content they believe warrants additional compensation.
In statements, the company likened the product to social media giant Pinterest.
Users are then prompted to tip in denominations of $0.25, $1, $2, $5 and $10. The company said it will also seek to reward users who post content, though no details on this initiative were provided.
ChangeTip did not indicate whether tips to the service would be sent to the content creators or the publishing media outlet.
The company did not immediately respond to comment on this story, though it said CEO Nick Sullivan would seek to answer community questions on Reddit starting at 10:00 EST, 15:00 BST.
Dollar image via Shutterstock
Currently, ChangeTip ‘s service – used across 12 social media platforms – denominates tips in bitcoin, or ‘bits’ (each worth 0.000001 of a bitcoin). However, in a statement today, the company said it is revamping its platform to support US dollar tips, a move that follows credit card support […]