Every year, more and more corporations are announcing their support for bitcoin. In 2015 alone, companies like Microsoft and Dell began accepting bitcoin as a legal form of currency. Unfortunately, despite its growing popularity, there are still a number of misconceptions that exist about bitcoin. In order to help eliminate these misconceptions and further promote the use of bitcoin, this guide will take a look at why small businesses should consider accepting bitcoin in particular.
Bitcoin Eliminates Fees
Unlike other transactions, bitcoin transactions are simply handled between two accounts. Since there is no need for an intermediary, such as a bank, there are no hidden fees that get unnecessarily tacked on after a payment is completed. For small businesses that have struggled in the past to stay competitive in their market, or have struggled with raising prices to stay in business, eliminating any unnecessary fees can actually relieve a huge burden.
Bitcoin is Quick
Bitcoin is routinely quicker than virtually any other payment type, because it doesn’t require verification from a number of different institutions. Bitcoin payments can quickly be delivered from a customer directly to the business, ensuring that there aren’t any unnecessary hiccups that cause further complications down the road. For small businesses that typically deal with larger clients, quick payments can be the difference between keeping the business running for another month and shutting down.
Bitcoin is Global
Small businesses that typically ship things into and out of the country have to deal with a number of processes before they can be rightfully paid for their products and services. With bitcoin though, borders are a thing of the past. Bitcoin payments can be sent to anywhere in the world from anywhere in the world. Since bitcoin isn’t tied to any singular government entity, there aren’t any transaction fees or shifting exchange rates when dealing with other countries.
Bitcoin is Final
This point is of particular importance to small businesses, where every sale counts. Unlike a credit card, there is no way for a customer to challenge a purchase with bitcoin. After a successful transaction, businesses don’t need to worry about offering refunds or dealing with credit card fraud claims. Instead, bitcoin transactions are final.
Bitcoin is an Investment
Unlike other currencies, bitcoin’s value fluctuates much more. While this might scare off some from accepting it, the reality is that this is actually beneficial. For perspective, at one point a single bitcoin grew from being worth just $2 to over $1,200. Of course, its value has since fluctuated further, but the point remains. For small businesses that are on the lookout for growth opportunities, bitcoin represents the perfect alternative to other potential investments.
Bitcoin is Innovative
Although this last point may not have as much of an impact as the others, it’s still worth considering. For small businesses, word-of-mouth is just as important as the quality of their products and services. By accepting bitcoin, a small business can immediately join a group of select businesses across the country. This unique position makes it attractive for those who regularly use bitcoins in their daily life, especially if a business is the only one in its industry that currently accepts it. With that in mind, there’s virtually no risk to accepting bitcoin, and the benefits clearly outweigh any possible negatives.
One of the keys to running any successful business, regardless of how big or small it is, is to make the best use of the technology that is currently available. As bitcoins grow in popularity, businesses will need to ask themselves which side of history they’d rather be on. As this guide has hopefully made it clear, the choice should be obvious.