You should have heard the terms “Bitcoin” and cryptocurrencies” being thrown around quite a bit online recently. Even though cryptocurrencies – those forms of money that only exist in a digital form on the blockchain – has been a hot topic in financial circles for years already, it is starting to creep into the business world. Some large, international organizations have been accepting Bitcoin for some time now, and some small businesses are choosing to follow suit. Have you been wondering whether your company should accept Bitcoin too? Hopefully, this quick guide will help you decide.
What Even Is Bitcoin?
Bitcoin is a cryptocurrency. That basically means that it is a digital form of currency that relies on peer-to-peer technologies. As it is decentralized, it means that there is no government or other big organization regulating it. It also cuts out the middleman. You don’t store your cryptocurrency in banks – instead, it is stored in an encryption that only you have access to.
Pros Of Accepting Bitcoin
- Increased Sales. You might find that accepting payments in Bitcoin will help to increase your sales. There are lots of hardcore Bitcoin fans out there who are trying to only use this cryptocurrency. So, by accepting it, you are opening up your business to them. Not only that, though, but as Bitcoin is decentralized, international buyers will also find it a lot easier to purchase things from you.
- Transaction Fees Are Greatly Reduced. If you use a platform like PayPal to make and take payments currently, you will probably already be aware of their very high transaction fees. One way around this is to start accepting Bitcoin. As it doesn’t use a central intermediary, there are hardly any fees involved.
- Caters To More Customer Preferences. Accepting Bitcoin payments offers your customers an extra way to use your services. Not only that, though, but it can offer them a safe transaction that they might prefer to some of the more traditional ones.
Cons Of Accepting Bitcoin
- There Are More Instances Of Fraud. Bitcoin isn’t always the safest form of transaction. In fact, more managed network security services now offer a crypto-ransom guarantee in their security packages. So, if you do start to accept Bitcoin payments, make sure you increase your cybersecurity accordingly.
- Cryptocurrencies Are Extremely Volatile. There is no denying that cryptocurrencies have been extremely volatile over the past few years. That could make it incredibly difficult to put a Bitcoin value to all of your products or services. If you do manage to figure it out one day, it could be completely wrong the next.
- It’s Unregulated. The fact that this cryptocurrency is unregulated can be one of its big advantages. However, it’s also a disadvantage. Currently, laws are being developed to govern Bitcoin. While these are coming into place, businesses may have to adapt to stay above the law.
All of the information about Bitcoin above should have answered any questions that you might have had about this famous cryptocurrency. Do you think you will incorporate it into your business?