Since its inception, Bitcoin has built a name for itself as one of the most secure currencies. Millennials have embraced the currency in droves, and they are some of the greatest proponents of the cryptocurrency.
However, despite its popularity, there is still some hesitancy among businesses both large and small in adopting the cryptocurrency as a legitimate mode of payment. Three key reasons drive this hesitancy:
- The lack of knowledge on how to keep cryptos safe.
- The volatile nature of cryptos. If you look at the 2018 Bitcoin price chart, you will realize stability is not easy to come by.
- The confusing tax and regulatory schemes that largely depend on the location of your businesses.
While the above reasons are legitimate, it is impossible to deny that Bitcoin also carries with it a lot of advantages. To help you decide if your business should accept Bitcoin, here is an analysis of the unique features of Bitcoin that play a significant role in making Bitcoin worth considering for your business.
Bitcoin is the most prevalent cryptocurrency
After the success of Bitcoin, a myriad of startups intending to piggyback on Bitcoin’s success also came up with their cryptocurrency. Some of these cryptocurrencies gained a significant amount of success, case in point, Ethereum, but none was able to achieve the heights that Bitcoin had achieved.
As a result, Bitcoin is still the most prevalent cryptocurrency. Moreover, among all the cryptocurrencies, it is the most stable. Considering how widely used Bitcoin is, especially among millennials, it follows that if you chose to incorporate it in your business, you would attract millennials—a large consumer group that many businesses are struggling to appeal to.
Bitcoin is fast and as a result extremely beneficial in borderless transactions
Bitcoin transactions happen in an instant irrespective of location. It only takes a few minutes for someone who is on the opposite side of the world to access the cash. In contrast, it would take a couple of days to access the cash if the same person was using the bank.
If you run a huge business with offices in different parts of the world, or you sell internationally, then incorporating Bitcoin can only be of benefit.
Bitcoin eliminates unnecessary costs such as credit card fees
As long as your business accepts payments via cards, then roughly 3% of your revenues must go to these credit card companies. With Bitcoin, you get to keep more of your money because it is a decentralized mode of payment which means there is no official body demanding payment.
Moreover, as it often happens, most companies or businesses have been hit with chargeback fraud more than once. Chargeback fraud is when a customer makes purchases using a card and then requests a chargeback from the bank although they have already received the goods or services.
Again, with Bitcoin, all the transactions are recorded on a ledger which means chargeback fraud is impossible.
Bitcoin can be used in both online and offline businesses
So far, Bitcoin has seen more prevalent use in online businesses. Good examples include Overstock and NewEgg. Overstock is an online retailer largely considered as Amazon’s rival. NewEgg, on the other hand, is an online technology retailer.
With regards to offline businesses, however, the use of Bitcoin as a mode of payment is still lacking. Nevertheless, some offline businesses have made huge steps in accepting Bitcoin.
In California, PizzaForCoins—a pizza joint—allows people to buy pizza using Bitcoins. In London, Pembury Tavern Pub allows people to buy drinks using Bitcoins. In Italy, one of the largest taxi companies—Cooperativa RadioTxi—allows passengers to pay with Bitcoins.
From the above examples, it is clear that irrespective of whether your business is online or offline, you can still accept Bitcoin as a mode of payment.
Final Words
The above discussion proves that it is possible for your business to accept Bitcoins. However, it is important to first weigh the pros against the cons, as well as having security tools, such as a VPN, to further secure transactions and ensure anonymity. You also need to analyze your market. For instance, if your business targets techno-savvy consumers, then accepting Bitcoin is a huge plus.
