Bitcoin has had quite the journey this year, going from over USD 20,000 back down to a much more modest $4000 or so throughout a few months. This drop might scare many investors, but for those who know its history and the potential of the tech behind bitcoin – blockchain – it’s only a matter of time before Cryptocurrencies become the way of the world. The only issue for businesses nowadays is whether it is a safe investment accepting bitcoin, or if it is something better left until later. To help you decide, follow this easy guide:
Is There a Market for It?
Being able to accept bitcoin as payment is great, but if no one uses that feature near you then going through the effort of setting up the pay point and your own bitcoin accounts will be for naught. That being said, being one of the few businesses in your town that do accept bitcoin can attract new customers that you never had before. To determine whether you should, or should not start accepting bitcoin you will need to know how many people have bitcoin in your town, or alternatively how many bitcoin-owning tourists visit your location.
Understanding the Benefits of Bitcoin
The benefits of bitcoin exist in two main areas. One, is that the blockchain technology behind bitcoin is incredibly secure and is seen by many to be the future for banking. Then, of course, there is also the fact that the value of bitcoin has increased substantially since its inception, and theoretically will only increase in value so long as it is Bitcoin that is the chosen crypto currency.
Understanding the Cons of Bitcoin
The cons of bitcoin lie in the fact that it is a new tech, and society itself has not yet decided on which crypto currency will be the reigning champ, though bitcoin is still the likeliest contender. It was also artificially inflated by investors, last year, which caused a huge spike and fall. Though this does not hurt the integrity of the crypto currency itself, it has weakened some people’s confidence.
What You Need If You Start to Accept Bitcoin Payments
In order to start accepting bitcoin you will need to:
Choose Your Bitcoin Processing Provider (PSP)
There are a few processing providers out there that allow you to set up invoicing capabilities and even QR codes that accept bitcoin payments in person. Online there are APIs you can add directly into your eCommerce Platform.
Set Up Your Account
In order to accept money, you need to create an account. This will mean verifying your identity, inputting your bank details, as well as other qualifying data. As you can imagine, you will want to ensure the provider you choose is genuine.
Keep Track of Tax
Paying tax doesn’t disappear once you start accepting bitcoin payments. In some cases, it can become even more complicated. For example, if you need to pay sales tax on your customers’ payment, and then income tax when you finally cash you bitcoin out into your local currency. Crypto taxes can be complicated, so to make it easier it’s wise to download Path.Tax to keep track of it.
Once you have decided to accept bitcoin you must endeavor to make the payment process as smooth and easy as possible. The future is hard to predict, but if done right can make you a massive success.