The Pros and Cons of Incorporating Bitcoin into Your Business
Cryptocurrency exists so we can make online payments and many industries have embraced the new trend.
Bitcoin is a pretty radical approach to how we handle money. That fresh approach has a lot of supporters since Bitcoin, as well as many other cryptos, is worth a pretty penny now.
The cryptocurrency’s use is relatively widespread among people, considering how recently it emerged into the finance scene. It is not only private individuals who find it convenient, though. Plenty of businesses have decided to include it as a payment option—experts at SpendMeNot list as many as 120 companies that accept Bitcoin.
That fact alone might inspire you to consider the merit of making Bitcoin a part of your business. But is it a good idea? Here are the factors you should keep in mind before deciding whether or not to accept Bitcoin.
The Benefits of Bitcoin as a Payment Method
What makes Bitcoin so appealing is its practicality. In essence, it can be sent on a transparent peer-to-peer network. Thus, transactions are done without interference from a third party, and details about them are available to the public.
Such transactions are almost instantaneous. Unlike traditional money that first has to go through some red tape before reaching its destination, crypto money simply goes from one wallet to another. Establishments that make use of Bitcoin especially enjoy this benefit when dealing with large sums of money, which normally take quite a long time to go from point A to point B.
The transparency part does much to reinforce trust between you and your customers. An open system that shows them exactly where the crypto goes assures them that their money is safe.
Another particular advantage of having Bitcoin as a currency is that it is appealing to younger generations. The younger crowd favors cryptocurrency—in 2018, around a third of all millennials claimed they would invest in crypto.
Why Bitcoin May Not Be Perfect for Your Business
For now, Bitcoin sounds like a pretty neat idea, right? Well, there are a few reasons why it has not become a staple of payment just yet. There are a few downsides that you must take into account when thinking about adopting Bitcoin. Perhaps the most important thing to note is that keeping Bitcoin safe is not that easy—it is not like keeping traditional money safe.
Now, you might have heard that blockchain, the system powering Bitcoin, is virtually hack-proof. However, crypto exchanges, which are third-party organizations that convert BTC into fiat money, are not immune to hackers. For that reason, many recommend keeping your cryptocurrency in a so-called hard wallet that is offline and away from cyber harm.
Another factor weighing Bitcoin down is its price volatility. Anyone acquainted with the crypto knows just what an emotional rollercoaster that volatility can be, as its value fluctuates by thousands of dollars. Therefore, having such an unpredictable currency supplying your business can quickly take a turn for the worse if its value starts plummeting.
Should Your Business Accept Bitcoin?
All the above considered, should your establishment take Bitcoin as a method of payment? There is no straightforward yes or no answer to that question.
It is mostly a matter of how much Bitcoin’s particular pros outweigh the cons. For instance, does your business deal with a lot of international customers? If so, paying with Bitcoin can be far smoother than with traditional cash.
Alternatively, if your business is related to online or blockchain technology, it can attract a lot of people who prefer crypto payments. Appealing to their values by allowing for Bitcoin will undoubtedly give you an advantage on the market.
As you can see, the broader context of your situation matters a great deal. If you believe that your business is compatible with Bitcoin, there is not much that can keep you from integrating it into your business. As long as you can create a good system to support and secure those payments, there is nothing to worry about.