How to answer merchant who asks "What is Bitcoin?" There is a software product that I'm interested in purchasing a license for.  I sent an email to their customer service asking if they would be interested in accepting Bitcoin.  Software licences seem an ideal use of Bitcoin since there is not physical product to ship.  Since the product is "virtual", why shouldn't the payment be "virtual" too?

They emailed me back the question "What is bitcoin?" What is the best way to answer them?  Is there a blog or web page that is specifically designed for this situation?
The simplest way to explain it is that it is an alternative currency.

Of course, this is just going to prompt more questions. So why not use a different example. Explain it like this:

"Bitcoin could be thought of as a commodity, like gold, that people purchase to invest it. Let's say I have a Gold Bullion coin worth USD 1,600, and you have a software program that costs USD 1,600. I could then offer to use my Gold Coin to buy your software program. I get the software program, you get the coin. You can then choose to sell the coin now for the USD 1,600, or you could hold on to it to see if its value appreciates."


Just my personal opinion. If merchants aren't already accepting Bitcoins, they probably won't start right away. However, explaining it to them could generate interest in the currency, so in the future they might start accepting it. Again, just my opinion!


Hope that helps!