Should Small Businesses Accept Bitcoin to Expand Their Business?

Should Small Businesses Accept Bitcoin to Expand Their Business?

Do many businesses struggle with the decision of whether they should accept bitcoin payments or not? What are the risks involved, and what benefits does accepting bitcoin payments offer to businesses? If you are a business owner seeking to answer whether you should accept crypto payments or not, you are at the right place. Here in this article, we will discuss the advantages and disadvantages of accepting crypto payments. Make sure to visit this bitcoin era to earn profits by trading bitcoin and other cryptocurrencies.

It’s been 12 years since bitcoin came into existence. Bitcoin’s price increased for the first time in 2017, and after 2017, it increased in 2020 where its price skyrocketed from $7000 to $30000 directly. The success of bitcoin continued in 2021, and bitcoin reached $63000, which is it’s all-time high price. But as we know, bitcoin’s market is volatile, and its price dropped to $30,000 again in August 2021. So before you plan to accept bitcoin payments in your company or business, note down that the crypto market is volatile. The price of bitcoin increases and decreases wildly in a short span, and therefore, as a business owner, you must always keep an eye on its price and factors that affect its price.

Advantages of Accepting Bitcoin Payments

Low-Cost Transactions

Bitcoin transactions don’t involve high fees because no intermediaries get involved in bitcoin payments. Compared to other methods that charge a high transaction fee, bitcoin charges less than 1% of the transaction value. Bitcoin is a peer-to-peer system, and therefore no fees get included in it. Users can also choose to have a free crypto wallet but make sure to choose a secure one.

Cross-Border Payments

Businesses deal in the import and export of goods and services internationally, and therefore there is a need to make payments. Businesses must choose a suitable payment method that involves low cost and processes transactions fast. Bitcoin is a peer-to-peer payment network that allows two parties to make transactions without requiring any third party directly. As a result, bitcoin transactions get completed within a few minutes.

No Chargebacks

Small scale businesses always fear credit card chargebacks, but in the case of bitcoin, there are no chargebacks that get involved. No third party gets involved in bitcoin payments, and therefore, there is no risk that a third party of the intermediary will return the payment. It is the decision of the merchant, and no central authority gets involved in it.

Hedge Against Inflation

Bitcoin has a fixed supply, and that is 21 million bitcoins. Fiat currencies lose their value because it gets printed whenever required. Because of a limited supply of bitcoin, its value either remains constant or increases, which is how bitcoin acts as a hedge against inflation.

Investment

Bitcoin isn’t only used as a medium of exchange but gets used for investment purposes. So though bitcoin makes a risky investment, it has the potential to offer you excellent returns on your investment.

Disadvantages of Accepting Bitcoin Payments

Security Concerns

There are many security concerns related to cryptocurrencies. Users buy, sell and store crypto coins through crypto exchanges, and as of now, crypto exchanges have already lost billions of dollars in scams and hacks. Though bitcoin uses encryption and secures the network, cryptocurrencies’ things or platforms aren’t secure. Crypto experts warn users to use the best storage device or method to secure their crypto coins.

Volatile Market

The bitcoin market has no regulations imposed on it by the government or banks. There have been multiple factors that affect the market and price of bitcoin and are the reason behind its increasing volatility. In case bitcoin’s price decreases, you will lose your investment. Therefore, it is essential to know bitcoin’s volatile market.

Public Transactions

Bitcoin transactions get recorded in a shared public ledger that is known as a blockchain ledger. The Bitcoin network is completely transparent, and each transaction recorded in the ledger is public, which means it is viewable to all users. Digital wallet owners must protect their wallet’s information.

Unrecoverable Wallet Addresses

Users can never recover their wallet address if it’s lost or hacked. The private key is the key that users must keep confidential to access their wallets securely. It is crucial to protect private keys and store them securely someplace no one else knows or has access to.