Should You Use Bitcoin In Your Business?

You’ve most certainly heard about Bitcoin – unless you’ve been living under a rock for the past 9 years. This is the first cryptocurrency that uses open-source software. It is decentralized because it has no administrator or single repository. Transactions take place peer-to-peer or directly between parties without any intermediary. This is why it has been called a game-changer in the field of digital currency transactions.

Cryptocurrencies are seen as an alternative or even a replacement of existing payment methods namely electronic money and the banking systems. The use of Bitcoin in business is much simpler in a sense that there is no administrator or third party.

You might be wondering then about the safety of your coins or funds. Well, Bitcoin uses a system referred to as a blockchain. All transactions are verified and recorded in these blockchains that are essentially a public ledger. It may appear too technical but using Bitcoin is easy and safe.

Bitcoin value has been soaring recently. In June 2016 it was just at around $639 but last January, it breached the $1,000 mark. On June 11, it reached a record high of $3,018. However, this article is not about Bitcoin’s prices but its usefulness as a currency. Why would a company consider using Bitcoin for its business?

Keep Up With The Times

In February 2015, some 100,000 merchants started accepting Bitcoins as a means of payment. This number is symbolic because it marks a special moment in the financial community. Any business, whether it’s a blue-chip company or the corner bakery, must stay up-to-date with technology in order to survive. You must be one step ahead of your competitor and be able to expand your reach as wide as possible. The present time is more promising because Bitcoin has been spreading globally and rapidly. It has gained popular use to millions of people around the world. Having another mode of payment for your business wouldn’t hurt. In fact, it is a good move.

Low fees (or even free)

You’ve read right. Almost all merchants complain about the fees they must pay for their transactions. At first glance, the average cost of 2-3% may look cheap. However, when you put together all the normal transfers and transactions, the total amount becomes material. Generally, Bitcoin has no fees at all. Why not? We said that Bitcoin transactions are conducted peer-to-peer so there is no third party to impose a transfer fee. Now, if you want super fast processing to get paid, maybe you will have to pay a small fee.

Go border less

When you want to invest or do business in another country, there are many factors to consider. One must take into account the currency values, interest rates, political climate and social environment. All thesecan give you a headache but Bitcoin itself is the solution. It is because Bitcoin is already the currency and is not regulated or restricted by governments, monetary authorities or central banks. All you need to do is find other merchants or retailers who are willing to accept Bitcoin.

Faster processing

Time is of the essence and is very crucial when it comes to business management and finances. Transferring money to your merchants through the banking system is another long and sometimes painful process. The cost increases when you have to rush an urgent payment. Bitcoin is faster because there are no agencies to check inspect and approve your transactions. It is not bound by banking hours, holidays and weekends. Transactions can be completed within an hour. Your business must keep pace with the blinding speed of the movement of the global economy.

Invest while conducting business

There is no telling how the price of Bitcoin will move within the day or tomorrow. Looking at the price chart of Bitcoin, it looks like things are going to get even better. Just like any currency, Bitcoin is not immune from price fluctuations. Hopefully, the upward trend will continue as it did from the day it was first introduced. While running your business, the price appreciation of your Bitcoins could already give you a profit.

Transparency

The blockchain can be likened to a huge file where every single transaction is captured, recorded and displayed. You can’t add, delete or modify anything. You and your clients will benefit from this system because you both know that your actions are visible and transparent. According to their website, Bitcoin is “probably the most transparent payment network in the world.”

No bureaucracy

This greatest characteristic of Bitcoin is sometimes its biggest weakness. Many people don’t trust or use Bitcoin because of doubt. Since there is no government authority to back it up, many think it is unsafe or even a scam. We mentioned earlier that the blockchain system makes it a safer investment. Another downside is that several countries have not yet allowed or even banned the use of this cryptocurrency. Therefore, you may not be able to use it as payment in some countries you do business in. The US still treats Bitcoin as a commodity and not as a currency.

Hard to predict or even guess

Central banks and monetary authorities regulate most currencies. Nevertheless, many factors still affect the value of the currencies – political environment, current events, bad economy, etc. Commodities are even more volatile in their values. In case the value dips really, really low, it might cause you serious business damage and severe financial losses.

Conclusion

The goal of any business is to generate profit and grow over time. This is the reason why every business must remain relevant and up-to-date. Today, fast-changing technology dominates the business world. This means that a business should be able to use all the latest technological breakthroughs and advancements in its operations. Bitcoin is an idea whose time has come. Its appearance in 2008 revolutionized the world of digital payments. A business that uses this new and alternative mode will have an advantage to attract more business around the world. The blockchain technology is one of the safest controls in the world. The use of Bitcoin is faster than other means and costs practically nothing. Our fearless recommendation: start using Bitcoin as an alternate payment method. However, don’t forget to do your homework first and make your own careful evaluation.