If you’re a small business owner, you may be wondering if you can benefit from Bitcoin and other cryptocurrencies. While this technology is still in its early days, and cryptocurrency remains a volatile payment solution, small businesses are likely to reap huge benefits from Bitcoin in the future, when it becomes more stable and widely-adopted.
Understanding Bitcoin – A Brief Primer
Bitcoin is a digital currency that’s based on a blockchain, which is a type of decentralized ledger technology, secured by cryptography.
Bitcoin is obtained by “miners”, who use computing power to solve complicated math equations and log transactions on the blockchain.
Bitcoin is unique, because it’s not regulated by a central bank. Instead, all transactions are verified by independent copies of the same blockchain. It also has a limited supply, which helps fight against inflation. For more about Bitcoin, take a look at this article from TechTarget .
The Benefits of Bitcoin for Small Businesses
So, why is Bitcoin a big deal for small businesses? Here are just a few benefits that Bitcoin could have for small businesses.
- Secure Online Transactions – Bitcoin is, by definition, a secure payment method which can be easily integrated into online storefronts. This means fewer fees and lower costs to launch online stores.
- Faster Transaction Speeds – Bitcoin, as a P2P system, has faster transfer times, compared to traditional banking systems. For example, a traditional cash advance deposits for business financing  could take multiple days to process, especially if it’s moving between countries. Bitcoin, in contrast, could process this transaction in seconds.
- No Transaction Fees – Because Bitcoin is decentralized, there is no central authority regulating the transactions of users – meaning that there are no fees you have to be concerned about when transferring funds to another person or business.
This is especially powerful when it comes to transferring money internationally, which traditionally can cost quite a bit of money in fees, due to the complexity of working with international banking institutions.
- No International Exchange Rates – Bitcoin is not subject to the daily fluctuations of international exchange rates. This makes it easier to transfer funds internationally – or accept payments from foreign customers and companies.5. Fraud Protection from Chargebacks– Bitcoin transactions are not reversible. A Bitcoin transaction is similar to handing cash over to a merchant – there is no way for a customer to easily file for a fraudulent chargeback, which is an increasingly common online scam.
For these five reasons and many more, Bitcoin may be the future of small business sales. It provides an immutable, convenient, and fee-free way to accept online payments both domestically and abroad and has a number of protections that make it ideal for both merchants and customers.
Look Forward to Mainstream Bitcoin Adoption – And Be Prepared
Currently, adopting Bitcoin in your small business may be difficult, and the volatility of the currency means that it is inherently risky. But, in the next few years, we expect that Bitcoin will become much more stable – and realize its true purpose as a truly decentralized, worldwide medium of exchange.
So, keep an eye on Bitcoin news, and make sure that your company is prepared to adopt the use of Bitcoin and other cryptocurrencies.
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