Whether you are a small business owner or you are running a large corporation, it is hard to deny that bitcoin isn’t making an impact on the business world. In fact, between bitcoin and the Republican tax plan it is hard to say which topic is appearing the news more these days.
With cryptocurrencies trading at $960.79 a coin and selling at $11,500 it really is easy to see why more and more individuals are raving and investing. This is practically ten times more than the coin was worth just less than a year ago. And, this is just the potential for its growth.
Any business owner could greatly benefit from knowing about bitcoin and using it in their business. However, before you just venture into the market of cryptocurrencies there are a few things that you need to be aware of.
First, you need to have a complete understanding of cryptocurrency and how it works.
To start off, cryptocurrencies works through peer-to-peer technology. Sure, this sounds confusing, but basically, all it means is that there is no central bank or government that regulates it. It also means that there is no bank or government to back it, which can make it seem risky to some individuals. When you buy a cryptocurrency you pretty much buy it right from the seller without any interference from third parties. This allows the currency to really cut the middleman out of the picture. This really is just one of the many benefits than any business owner could take advantage of by choosing to accept bitcoin.
Take Advantage of Lower Transaction Fees
As a business owner, you incur transaction fees when you accept credit cards payment. These prices are usually based on a fixed rate like 25 cents per card swipe, plus a two to four percent of the total transaction. These charges can really add up over time and this is why many smaller businesses didn’t accept credit card at one time. Some still don’t to this very day for these reasons.
Well, due to the fact that government forces do not regulate bitcoin this really reduces the cost of transaction fees. Take advantage of sites like FindBitcoinATM to get your business fully synced to accept cryptocurrency.
There is nothing worse than a chargeback for a business. You thought you had sold a product and then you find out that you have to refund the money. Now, you are left with an open and used product that you can probably only sell at a heavily discounted price. And, most of the time, there was probably nothing even wrong with the product.
Well, cryptocurrency can completely eliminate these chargebacks. When someone pays you with bitcoin the payment is completely 100 percent final because there is no third party that can reverse the charges. This is similar to someone paying in cash.
A Whole New Marketplace
Bitcoin and other cryptocurrencies really allow businesses of all sizes to open their doors to a whole new marketplace.
International customers that might have once otherwise been inaccessible to you can now be available when you start accepting cryptocurrency. In fact, one small business just recently reported that they were able to increase their profits by $300,000 just because cryptocurrency gave them the ability to sell their product in 40 new countries.
Know the Risks
Right now it probably seems like cryptocurrency is a godsend. Sure, it is great and any business can benefit from it, but you also need to know that it doesn’t come without some risks.
When you customize your business to start accepting bitcoin it means that you are creating a digital profile on some currency exchange site like the one mentioned above. Not all of these sites a legitimate and provide the best protection to their customers. And, this is not to even mention the fact that there is a huge learning curve with cryptocurrencies. This could make it extremely difficult and risky for the new investor.
Of course, when it comes to bitcoin and other cryptocurrencies the biggest risk is the price volatility. The price of bitcoin is always drastically changing without a moments notice. For instance, when bitcoin was first introduced on the market it only valued in at pennies, in 2017 it rose to a high of $19,172, and now it currently values at right around $7,000. You have to weigh the pros and cons and be extremely cautious when dealing with this kind of volatility.
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