There is no doubt to the fact that entrepreneurs, businesspersons, investors and even nations have taken a keen interest in bitcoin after its remarkable rise made it a household name in 2017.
The crypto industry is growing at a rapid pace, and there are currently about 2.5 million items that can be bought with the use of bitcoin. The speed, accessibility and the extra security of the blockchain technology are all factors that have catapulted the adoption rate of the cryptocurrency.
Small businesses surely stand to gain a lot from adopting this digital currency for their business transactions, some of which include:
- Little to no charges
Unlike the traditional payment system where third parties like banks or other merchants take a lot of percentage off your money in order to process your transactions, the cryptocurrency requires no third party. Though you may be provided some optional fees to speed up your transactions, crypto has been reviewed alongside different payment systems and it was the cheapest of them all. In fact, credit cards are seen to cost about 5.5x more than bitcoins. This factor alone can save new businesses a whole lot of money.
- It’s faster and easier
The mere fact that you can send money to different locations, far and near, right from your bitcoin wallet without having to fill in credit card details and/or wait for days before the money gets to the recipient makes bitcoin more time-efficient and easier.
- No restrictions
Creating a bitcoin wallet is totally free and available to all, likewise, accessing your wallet and making payments is available to you at all times without limitation.
Despite these benefits and more, here are factors to consider before diving into cryptocurrency to ensure it serves you the benefits listed above rather than cripple your business by driving away customers/clients.
Although as much as 2.5 million items can already be bought with bitcoin, it’s still a fact that not all market niche have fully embraced the digital currency; Amazon, for instance, turned bitcoin down for the fact that it’s still a highly unstable proposition and also, not many of its customers have expressed interest in it.
This means that, though experts call Bitcoin the future of banking, businesses still have to do a thorough research to see how the digital currency is panning out in their niche and, most importantly, how much interest their customers/clients are expressing in the new currency.
The business model must especially be taken into consideration because, say for example the real estate industry may thrive on the digital currency, a brick and mortar startup that deals mainly with local clients will not really experience much benefits but rather, will be subject to unnecessary taxes (if from the US), as the IRS is currently treating the coinage as a taxable property.
This should be a major determining factor for any business that plans to go down the road of cryptocurrency.
The crypto market has hugely grown in value over the years, but there are still mixed feelings amongst the masses on the currency as some consider it a means for illegal, underground operations just as hackers held North Carolina Government’s computers on ransom and demanded 2 bitcoin — which was worth about $25,000.
With that stated, it’s important businesses only push through with the digital currency if only consumers express interest in it. Going the other way about this can end up scaring your consumers away and creating a bad image for your brand.
Although bitcoin is still being deliberated and most countries are still neither with nor against the digital currency, crypto aficionados should review the law governing the use of the currency in their locality before proceeding to adopt the currency for their business. This is important because just as bitcoin is still an unstable proposition, laws regarding the currency will differ from place to place and is subject to change at anytime. At the moment, the countries that have banned bitcoin as an alternate currency are India, China, Germany, Russia and more.
Considering the above factors will help businesses decide whether to adopt bitcoin as an alternate currency for their business, or stick with the traditional currency.