Bitcoin, both the technology and cryptocurrency, has grown immensely over the years. In these days, there are a lot more ways to buy bitcoin and there are so many things to spend your bitcoins on. You can buy things like furniture, you can donate to charity (or even set up a charitable foundation yourself), and you can even pay your taxes (depending on where you live). Of course, there are still a lot of newbies asking questions like “what affects the price of bitcoin?”, “is bitcoin a bubble and has it popped?”, or “why are there so many cryptocurrencies?”, but those days are diminishing as we move towards bitcoin mass adoption.
The Bitcoin community nowadays is larger and more experienced. It is constantly sharing information and embracing new enthusiasts which makes trading bitcoins for beginners easier than ever. The more people willing to dive right into Bitcoin, the more opportunities there will be for trades and transactions to happen.
With the financial world heading towards Bitcoin mass adoption, businesses are starting to come out and accept bitcoin as payment for their goods and services. So if you’re a business owner looking to accept bitcoins as payment, I’m here to give you a little insight on how and what the benefits are.
Understanding the advantages and disadvantages of accepting bitcoin as a payment method is essential. Make sure that you understand what you’re getting into so you can minimize all the potential risk involved. Let’s break down these factors into two groups, advantages and disadvantages.
Advantages
Security
Bitcoin transactions are the most secured transactions in the world, due to the fact that each peer-to-peer transaction is recorded on a public ledger for everyone to see. Identities of the senders and recipients are purposely obscured. The complex cryptographic hashes prevent any manipulation of the transaction records or any unwanted prying eyes. The security of bitcoin is very important in an era where online threats are looming and consumer trust is plummeting. Know Your Customer (KYC) laws are also being implemented on exchanges and trading platforms to add an extra layer of security for Bitcoin users..
Customer reach
Accepting bitcoin widens your business’ reach. Since bitcoin is borderless, it could increase international sales and it could make payments way easier for both you and the customer. Imagine broadening your reach to a global scale simply by providing your bitcoin wallet address to your clients.
Public relations
One of the best ways to spread awareness for your brands is through press releases. Starting to accept cryptocurrency could be a reason to write one.
You can also use “your business is now accepting bitcoin” as a milestone or landmark event for your company. If you advertise it properly, you can build a whole marketing campaign around the event. It will get a lot of people riled up about your business and hell, it could even get you some sales with the publicity. That’ the new breed of marketing right there.
Lower transaction fees
When bitcoin first came out, one of the main selling points of cryptocurrency was its near-zero transaction fees. As the popularity of all cryptocurrencies spiked, the fees got higher and higher. I guess you can say that the transaction fees have almost been as volatile as the price of bitcoin. As the price kept spiking, some business, who had already started accepting bitcoin as payment, had to discontinue the bitcoin services.
Over time, the prices have seem to have stabilized and businesses are starting to accept it once again. It is back to being one of the more cost-efficient payment methods for business owners. As a business owner looking to integrate Bitcoin into your business, keeping up-to-date about Bitcoin price is recommended.
Brand reputation and allegiance
In terms of brand reputation, accepting bitcoin may be a positive thing for your brand. With the right product or service made available via bitcoin payment, it could be the perfect match for a successful business.
Let’s use an example. Let’s say you’re a tech company with an audience comprised of tech enthusiasts. If you began to start accepting bitcoin, it could make your brand look progressive and forward-thinking. This can be a great selling point for your business since you’re willing to look forward and adopt something that may be better.
Accepting bitcoin can present you as a leader and innovator of your industry. Remember that you probably aren’t the only business owner thinking about accepting bitcoin. If your competitors start to accept bitcoins as payment before you do, then you should probably take it as a sign that you should do the same thing. Adopting bitcoin as a payment option shows that your business is competitive and open to innovation.
Bitcoin supporters
10 years going strong, the bitcoin community is the largest and most passionate among all the other cryptocurrency communities. The people who have been mining and investing in bitcoin since the start are willing and excited to make changes to their buying habits, especially if it means making the cryptocurrency more popular.
Accepting bitcoin as payment can be a way to show appreciation to the passionate community and it might even increase your sales.
Disadvantages
Price
The thing about bitcoin is that its price is sort of infamous for its fluctuations. Ever since its all-time high in late 2017 (around $20,000, it has taken a big hit and now sits in the $3,500-$4,500 range). Let’s say you start taking bitcoin payments when the price is high. Those payments will result in a loss if the price suddenly drops.
If business owners can adapt their bitcoin prices quickly, they can easily solve this disadvantage. Research is the key here. Make sure that you are up-to-date with the Bitcoin price.
It’s a complex technology
Some business owners already have their hands full with an already-complex payment processing system. Accepting bitcoin as payment means setting up a digital wallet on a currency exchange. To make bitcoin payments work, constant research and learning are need on the business owners’ part.
Business owners will also have to educate their current clients about crypto and how to make purchases with it. This is so that they can make sure that the offer bitcoin payment option is optimized. Bitcoin related marketing content can help you and your clients out.
Security
Yes, in the case of bitcoin and other cryptocurrencies, security is a double-edged sword. There is no way to prevent criminals from getting their hands on the wallets of honest users. Unlike regular fiat currencies, cryptocurrencies aren’t backed and insured.
A solution of this would be to enable extra security measures that can prevent anyone else from gaining access to your wallet. 2-Factor Authentication is an example of that.
Regulatory uncertainty
Bitcoin, although it’s already 10 years old, is still an infant currency. Governments are still deciding what to do with it. Lawmakers are still crafting rules and laws to govern crypto.
Once regulations are set, business owners will have to be adaptable. To combat this, business owners can educate communities on what cryptocurrencies are and how to use them.
Your list of priorities
Although it could be a good addition to your business repertoire, it isn’t usually at the top of the list when it comes to making business decisions. They aren’t make-or-break so you have to make sure that you have everything in check before even thinking about accepting bitcoin payments.
If you’ve decided on setting up a bitcoin payment method system, there a few simple ways to do so.
Start with a small sign
If you aren’t really expecting a whole lot of people to rush in with their bitcoins ready to pay, you can start with a small sign or banner on the side of your website. You can then ask your customers to contact you directly if they wish to pay with bitcoins.
Smartphones or tablets
There are dedicated apps that generate a QR code on the fly including the amount. Most wallets also support QR code scanning for payment.
Online store payments
You can start accepting bitcoins as payment by setting up buttons on your site that are linked to online payment intermediaries. You can set up a “Pay with bitcoin” button that streamlines the payment process. When you use these intermediaries, you are given a few lines of HTML code which you can then have embed onto your webpage. Even if you don’t end up receiving too many bitcoin payments, it doesn’t hurt the business to have it set up.
These are just three of the many ways to start accepting bitcoin as payment. These are the simplest ways of getting started. There are more advanced methods, but I think we’ll settle for these for now. Some other methods include hardware terminals and touch screen apps.
There are many advantages and disadvantages to accepting bitcoin as payment but ultimately, it’s up to you and what kind of business you run. As a business owner, your top priority should be to provide convenience to your clients. Bitcoin payments may be a way to so but you have to make sure that you hear out your clients.
Make sure to do all your research carefully before making any rash decisions because if you don’t, it can cause it can cause some major losses to you and your business. I wish you nothing but the best and I hope to be buying some of your products with bitcoin soon!