Since the value of Bitcoin fluctuates constantly, the tag connects to the internet to find the real-time Bitcoin price of the item. The tag also displays information like the product name and the item price in the local currency.
The tag works with an accompanying iPad app, and connects to an accompanying tablet via Bluetooth to check the BitCoin value and change its price display based on the current value.
The app can also be used to process a Bitcoin transaction by placing the tag on the screen. Alternatively, a Bitcoin transaction can be activated by shaking the tag to show a QR code that people can scan using their smartphones.
“Being physical and therefore visible, [BitTag] will hopefully push Bitcoin to be accepted socially as a standard currency, decoupling it from its web roots,” explains Cox to PSFK.
The new type of tag brings BitCoin into brick-and-mortar stores, and could be a cheaper alternative for retailers since there’s no additional charge for transactions unlike traditional credit cards.
“For the user, Bitcoin offers an open, peer-to-peer payment system without the need for banking institutions,” says Cox.
Scroll through more images of the BitTag in the gallery below.