Is Bitcoin an ideal option for small businesses? It is advisable that small business owners should take into account both technical and realistic things before investing in Bitcoin or other cryptocurrencies. This blog lists some of the important things that small business owners need to be aware of cryptocurrency.
- Free from Transaction Fees – If a 2-3% transaction fee is negatively impacting your cash flow, then Bitcoin can protect it. The transaction fees involved in Bitcoin are usually between 1% and 0. In addition to that, it is possible to send or receive Bitcoin as a free payment. However, in many cases, you will be able to pay very low transaction fees, that are capable of accelerating your processing.
- Eliminate the Need for Waiting – You don’t have to wait longer to get your payment, as Bitcoin transactions are usually processed promptly in a short amount of time it takes to make a credit card transaction.
- Industry without Borders – When you are exporting or buying supplies or materials from other countries, then you may consider Bitcoin for conducting business. It is due to that Bitcoin is an international currency, not closely connected to one government or enterprise, and avoids border limitations.
- Immune to Payment Disputes –Bitcoin is a digital currency, but it performs like cash. Bitcoin transactions are ultimate and cannot be disputed by buyers. Accepting Bitcoin may help if a customer has problems disagreeing with making payment through their credit card.
- Good Investment Opportunity – Similar to other currencies, the value of Bitcoin varies. However, it is more unstable than paying with cash, gold, or any other product you are familiar with.
- Protects Merchants -. Bitcoin safeguards merchants from fake chargebacks. The dealings, like cash, are ultimate as there is no third party involved who are capable of revoking charges.
However, there are also many potential dangers involved in accepting Bitcoin, which small business owners must be aware of before considering investing in Bitcoin. The following are some of the challenges associated with Bitcoin.
- Not Regulated – Bitcoin is not regulated by any government. In fact, the American government accepted bitcoin as a legitimate commodity, and there is a possibility that the US government may impose financial regulation on Bitcoin, however, some other countries have limited or prohibited Bitcoin usage.
- Unstable – Bitcoin has become more and more stable over the years, surpassing gold these days, but it is still basically a digital currency that is not monitored by any financial organization. If the economy demands the Federal Reserve system can increase or minimize the rates of interest, however, Bitcoin does not come with any such option.
- Difficult to Plan – Bitcoin is a highly fluctuating, decentralized currency, so it will be very difficult to design financial statements, find out taxes and also decide your prices.
It is assumed that Bitcoin can help your small business, however, there is a lot of confusion surrounding the acceptance of this digital currency. If you are planning to invest in Bitcoin, relax and consider why Bitcoin is beneficial for your small business and how to deal with the challenges that Bitcoin may pose.