Should your small business accept Bitcoin?
The use of cryptocurrency, and in particular Bitcoin, in business transactions is not a case of "if" but "when". The simple explanation is that bitcoin is increasingly becoming accepted as a payment method across several sectors of the world economy. Giant multinationals and famous brands are already accepting Bitcoin transactions in their businesses.
There are several reasons why these companies and individuals alike choose to accept Bitcoin, as we shall examine shortly.
What is Bitcoin?
Bitcoin is a decentralized open-source blockchain cryptocurrency whose digital currency bitcoin is used as a payment platform. It is to digital currencies, what cash is to traditional fiat currencies. You can read more about Bitcoin by visiting https://www.abitgreedy.com/.
For the purpose of this article, the question we are seeking to answer is this: Should your small business accept Bitcoin payments? The answer is probably "yes", though that would be me responding on your behalf. I know what you are thinking: Accept Bitcoin for my backyard "mom-and-pop" shop? Well, don't be perplexed by this. Bitcoin payments can be made by anyone and to anyone at any time. In short, yes you can start having your customers pay you in Bitcoin.
If you would want to start to accept bitcoin but don't know what benefits it could have for your business, then this article will set it up nicely for you. Read on to find why you should be among the first to realize that the future of business lies in digital transactions, Bitcoin being in the forefront.
Why should you accept Bitcoin for your small business?
Bitcoin doesn't fall under the jurisdiction of any government or central financial body. What this means is that bitcoin helps open your small business to seamless cross-border transactions like importing or exporting goods and services. Using bitcoin enables you to handle all the fees, related exchange rates, and different currency denominations: all in one. Paying or receiving payment across international borders become easy for you.
Bitcoin offers you a chance to acquire new customers.
Accepting Bitcoin payments could afford your small business new customers. Cryptocurrency payments are catching on very first and there are individuals out there who will only pay via crypto coins. So, if you accept Bitcoin, you are opening your business to new customers. If you are the first in a given location to accept Bitcoin payments, chances are that you will be getting many people who wish to pay for everyday goods and services using bitcoin. It could be your coffee shop or boutique; new customers who pay in bitcoin are surely good for you and your small business. In fact, having additional payment methods or the lack of it can affect the chances of a business acquiring new customers.
Bitcoin transactions are faster compared to payment methods like Credit cards or bank transfers. The reason bitcoin is faster arising from the fact that there are no bureaucratic checks that take longer to confirm transactions. The use of blockchain technology makes it faster, allowing you to receive payments within minutes of every transaction. You wouldn't have to wait 2-3 days to receive payments from your bank.
With Bitcoin, transactions are final, no fraud or chargeback risks
Bitcoin in this sense works a bit like cash payments. The payment is either completed or it hasn't. There are no transactions that are pended, keeping your business waiting. But the best part is that with bitcoin, your business won't be subject to chargebacks because transactions are irreversible and final. Furthermore, risks of being offered fake checks won't occur with Bitcoin payments. You get paid by the customers or clients and they cannot claim to have paid if they haven't.
Bitcoin offers your clients privacy and security when making payments
When you accept bitcoin payments for your small business, you accord your customers some form of privacy. Transactions on the bitcoin blockchain are secured by cryptographic protocols. Although we can see that transactions took place, we can’t tell they were by whom or to whom. If your business offers online shopping services, then you'd have noticed that customers abandon their shopping carts due to privacy and security concerns. Bitcoin protocols make it difficult for hackers to prey on your customers' meta-data, as they don't have to leave any personal data online.
Lower to zero transaction fees
It is no secret that merchant companies charge businesses up to 3-4 percent fees to complete online payments. Such charges can be a big percentage of your small business' profits. But with bitcoin, transaction fees are much lower, often below 1% of the transaction. What's even more encouraging is bitcoin’s implementation of the Lightning Network protocol that will make transactions faster and extremely cheap; zero fees is even possible.
We have examined how your business could benefit when you opt to accept Bitcoin as a payment method. However, like every other form of payment or currency, using bitcoin comes with its own challenges. This means that there are a few checks and balances you'd need to put in place as you accept bitcoin for your small business.
What should you have in mind as you accept bitcoin for your small business?
It is worth noting that bitcoin is a cryptocurrency and like all the others, it is unregulated. This means that it doesn't fall under anybody's control. While this aspect of bitcoin is positive, it can also be negative. In cases where something goes wrong, you may not get any legal recourse.
Bitcoin is also highly volatile and, in most parts, speculative. So, the price of bitcoin today may be completely different to what you have the next day. These price fluctuations can be negative to your business, though if Bitcoin prices jump suddenly, then you can make a profit out of holding some of the BTC.
The other challenge may arise when you wish to make financial plans for your business. The high volatility means having fixed calculations for prices or tax obligations can be tricky. Perhaps it can help to have more payment methods that will be supplemented by Bitcoin. It would also be advisable to consult your financial planner and see how to best approach this matter.
Accepting Bitcoin as a payment method for your small business is a great idea. Its benefits far outweigh the challenges that you may face. Nevertheless, a proper study of how bitcoin works should be the first step you take. You should understand concepts like wallets, public keys, and private keys. Only then should you accept bitcoin for your small business.