Author: Benjamin Lee
There’s no denying the fact that cryptocurrency is fast becoming a regular part of daily life. In fact, a rising number of businesses and corporate giants have begun to accept cryptocurrency payments. At this point in time, Bitcoin is widely regarded as one of the most accepted forms of cryptocurrency in the world.
What is cryptocurrency?
Before we get started, let’s take a look at what cryptocurrencies actually are. As their namesake goes, cryptocurrencies are a form of decentralized and unregulated digital money. Unless you’ve been living under a rock, you’ve probably heard of Bitcoin.
Originally used by surfers of the deep web and some criminals, Bitcoin first gained mainstream popularity back in 2015 when its valuations exploded. Bitcoins rely on a system called the blockchain to keep a record of all transactions.
in an increasingly connected world, it’s crucial that business owners everywhere stay on the ball. Thus, in this article, we look at some of the reasons why small business owners should consider accepting cryptocurrency payments.
1. Bitcoin transfers are free
Okay, Bitcoin transfers are not always free but most of the time they do not cost anything. In comparison, many real-world money transfer services charge you a fee every time. Also, if you regularly deal with foreign currencies, these money transfer services usually have an unfavorable rate. Hence, you’ll find yourself losing precious profits when your transactions are paid for with fiat currency.
As was mentioned, Bitcoin transactions usually charge a small fee or are totally free of charge, thus helping you protect your profit margins.
2. Instantaneous transfers
When compared to real world currencies, Bitcoin transfers have one huge advantage; which is the absence of a waiting period. Oftentimes, banks take upwards of 3 - 5 days to process the transfer of funds into your account. This does not take into account holidays as well as weekends.
With a Bitcoin transfer, you’ll be able to access your hard-earned money instantaneously. Due to the absence of a regulatory authority that audits every single transaction, you won’t need to worry about delays in receiving your money. As a small-business owner, this liquidity is essential if you are to keep your business rolling.
3. Cryptocurrency knows no borders
Governments often impose a variety of tariffs and taxes on goods and services being imported or exported. Consequently, if you have customers is foreign countries, chances are you may find yourself being unfairly taxed.
Fortunately for us, Bitcoin and other cryptocurrencies have no such restrictions. As there is no central authority controlling the flow of cryptocurrencies, your transactions are essentially outside of the government’s control.
Hence, this allows you to circumvent import and export taxes in foreign nations. As long as your customer is willing to deal in Bitcoins, everything should go along smoothly. However, you should always take steps to ensure that you’re in line with your own countries tax regulations.
4. Cryptocurrency protects your privacy
Regardless of the nature of your business, you should always ensure that your privacy is protected. With criminals becoming increasingly sophisticated, remaining anonymous is sometimes the best form of security.
Bitcoins and other cryptocurrencies have long been valued for their untraceable nature. Known as pseudo-anonymity, cryptocurrencies enable you to receive payments without revealing any personal information. This is because Bitcoins are stored in an electronic wallet that doesn’t require you to reveal your identity or location for that matter.
Hence this makes it nearly impossible for hackers to attack your bank account. Also, as an added benefit, you can rest easy knowing that your location is hidden from criminals.
5. Bitcoin can be an investment
Cryptocurrencies such as Bitcoin are gaining popularity as an investment. As can be seen by past trends, Bitcoin news reported that the valuations have been known to skyrocket within a matter of days. While we don’t recommend holding Bitcoins exclusively, a small portion of your earnings could be used as the basis for your crypto portfolio.
Given the volatile nature of crypto, converting your earnings into real-world currency may see you actually making a profit from the price differentials. Care should also be exercised in this manner as you could also make a loss should your Bitcoins suddenly devalue.
At the end of the day, cryptocurrencies have the potential to take your business to new heights. Nonetheless, it’s not without risks and the road can be a challenging one.