Local Business Bitcoin Integration: MOD BIKES
I'm excited to share another Satoshi Health Advisors case study of a local business with national reach adopting bitcoin! This spring, I had the great pleasure of working with Dor and Mike to integrate a bitcoin strategy at MOD BIKES. Dor and his team have developed a line of uniquely designed, quality e-bikes built to last.
MOD BIKES is now accepting bitcoin in exchange for their beautiful electric bikes and accessories, with their first purchases already received in bitcoin! Always innovating, MOD brings new technology to the market and decided that now is the time to integrate a bitcoin strategy. Based in Austin, Texas and shipping worldwide, MOD BIKES is now accepting bitcoin via the Lightning Network in-store and online.
By adding bitcoin as another payment rail, MOD BIKES has the opportunity to save money on transaction fees and have immediate settlement of funds received. MOD is utilizing Strike to enable a seamless experience for our bitcoiner customers, which you’ll see as another checkout option in their online Shopify store. By plugging into the Lightning Network - an open, interoperable protocol layer on top of bitcoin - they can now easily (and instantly!) accept payments globally.
MOD partnered with Oshi, another Austin-based company that enables any business to run their own custom bitcoin rewards and loyalty program. MOD will be passing on the transaction fee savings in the form of 2% bitcoin rewards back to our customers that pay using bitcoin. In addition to 2% “sats back”, MOD is offering 5% in bitcoin rewards for referrals coming via Oshi’s affiliate marketplace.
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MOD's mission aligns with the bitcoin community values, providing high quality, durable goods with a five year warranty. Delivering innovative unique designs, their products that will fit right in to Oshi's based marketplace. Use this referral link 5% in bitcoin rewards with your purchase of a MOD e-bike. Let's dig in a bit further to why MOD BIKES integrated a bitcoin strategy.
MOD BIKES and bitcoin have more in common than first meet the eye.
Running on Electricity - e-bikes and bitcoin are both powered by electricity. It is a common misconception that bitcoin has an energy usage problem. In fact, bitcoin incentivizes the lowest cost energy production, particularly in Texas where energy is abundant and deregulated ERCOT enables free market energy pricing. Bitcoin miners secure the decentralized network, even mitigating flared gas, benefiting the environment and stabilizing the grid. Likewise, every city commuter shifting to one of MOD's e-bikes reduces congestion on the streets and takes another car off the road.
Freedom - electric bikes enable you to explore new places at ease and feel the thrill of cruising up to 28 MPH! Similarly, bitcoin empowers the sovereign individual to store their value in a currency that can’t be debased, access anywhere in the world and send value across borders without limitations.
Commitment to Quality - MOD BIKES delivers unique designs that are built to last and quality parts. The economics of bitcoin incentivize a low time preference approach to building that aligns with MOD's values as a company.
Efficiency - By utilizing bitcoin’s Lightning Network, MOD is lowering transaction fees and have decided to pass on these savings in the form of bitcoin rewards to their customers. E-bikes deliver efficient mode of transportation, with MOD's custom torque sensor for a joyful experience.
Open Network - By integrating with MOD's current checkout process, customers can use any Lightning Network wallet or Lightning-enabled exchange to pay for their products. MOD has developed a national consumer base; just as they are advancing electric bike charging stations, bitcoin node operators are a decentralized network and opening up channels to one another to facilitate payments in a parallel economy.
Limited supply - there will only ever be 21 million bitcoin. The 5th epoch of bitcoin is approaching in April, as the supply of new bitcoin distributed in each block will be cut in half at block 840,000. The impact of a fixed supply means that our technological innovation can bring prices down over time. MOD can only produce so many bikes, and appreciate any consumer who will choose to part with their bitcoin to enjoy one of our bikes.
Bitcoin adoption will continue to occur one merchant at a time saying "Pay Me in Bitcoin". I loved working with the MOD Squad to understand bitcoin and implement a bitcoin strategy. I applaud MOD BIKES for taking this step to adopt bitcoin, showing Proof of Work to understand bitcoin and Lightning, and how it can ultimately help them grow their business and find an aligned consumer base.
Down the road, MOD would ideally be able to pay their suppliers in bitcoin, however at this time they will likely need to convert most of the bitcoin back into fiat in order to pay expenses, while holding onto some bitcoin for savings in their treasury. They welcome the Bitcoin community in Austin to come by the shop, where we will plan to host a future Austin Bitcoin Club meetup - let’s ride together!
If you want to learn more about integrating a bitcoin strategy at your business, feel free to book a discovery call or reach out to me at jon@satoshihealth.com.
Onward!
