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Should you accept Bitcoin payments for your business?

Should you accept Bitcoin payments for your business?
The Siliconreview
28 April, 2021

These days, cryptocurrencies are extremely popular. Many people use it as an investment, but do not forget that it can be used to purchase a variety of goods and services, including clothing, restaurants, gift cards, and many other items. If you own a small or large business, you may be wondering whether you should be accepting Bitcoin payments. The answer is probably yes. You might be surprised at how many benefits this payment method has over the traditional one. In any case, as with anything, it is critical to understand both the advantages and disadvantages of this. But first – let‘s start with the basics.

What exactly is cryptocurrency? It is a digital currency that can be used to purchase a variety of goods and services. As previously stated, the majority of people who use cryptocurrency do so for the possibility of profit trading. It is similar to casino chips. If you want to use a service provided by a company, you must first exchange real money for crypto. The most popular cryptocurrencies are Bitcoin, Litecoin, XRP, Tether, Polkadot, Ethereum, Cardano, and Bitcoin Cash. If you consider purchasing one, you may require an online app that allows you to store your currency. Simply put, you should open an account and then use real money to purchase the crypto of your choice. Choosing a cryptocurrency exchange can be difficult. You should investigate whether the platform you are considering is secure. Transaction fees also differ between exchanges, which is important to consider when selecting a crypto exchange. You might want to think about a variety of options before settling on just one. Do not be afraid to sign up for a variety of exchanges and participate in them all.

Bitcoin is probably the most popular cryptocurrency, which is why it can be the best choice if you want to accept payments in crypto. It was created in 2009 by an unknown individual. He was going by the alias Satoshi Nakamoto. One of the primary reasons people prefer it is that it is not controlled by a bank or the government. Some supporters even claim that it is far more secure than traditional payment methods, and many people believe that it could be the currency of the future. How exactly does it work? Each Bitcoin is essentially a computer file that is stored in a device known as a „digital wallet“. People can send this crypto to each other. Every transaction is recorded in a public list known as the blockchain. It is necessary to trace the history of Bitcoins, in order to prevent people from spending or copying coins they do not own. The most important question is whether or not it is secure. Because every transaction is publicly recorded, it is extremely difficult to create fake Bitcoins or spend ones you do not own. However, you could lose your wallet or delete your crypto and lose it forever. In any case, the value of Bitcoins has fluctuated over the years since its inception. Some argue that it is a risky investment, but in the end, it is all up to people who want it.

So let‘s go back to the question if you should accept Bitcoin payments for your business? Let us begin with some advantages. For starters, the fees are extremely low. Other payment methods have significant ones. Some may even be higher than 4%. Many payment processors charge setup free, as well as a flat one per transaction. You can find Bitcoin exchanges with transaction fees of less than 1%. If payment is made peer-to-peer, there is no fee at all. Furthermore, due to the nature of the transaction, no third party can return the payment to the customer, and this decision is solely for the merchants. As a result, it may appear to be a significant advantage for your company. Another important thing is that younger generations are becoming increasingly interested in Bitcoin. Extending payment options may benefit your business if your customers are young. Not to mention that Bitcoin has a limit of 21 million coins, indicating that it has a limited capacity. Because of this limitation, bitcoin‘s value may become a hedge against monetary inflation. You could even keep Bitcoin indefinitely, and if its value rises above the amount of the payment received, you could save the difference until the Bitcoin is sold.

Although this payment method has many advantages, it also has some drawbacks. Some people are actually concerned about their safety. Crypto exchanges have been hacked, resulting in the loss of millions of dollars. While Bitcoin is more secure than other payment methods, many people believe that the most secure storage is offline in what is known as a paper wallet. Another very important point to mention. If your wallet is stolen, any Bitcoin stored in it is permanently lost. There is no centralized database that stores cryptographic access keys. Because the wallet belongs to only one person, it must be kept secure. That is a huge responsibility, so proceed with caution. Furthermore, there is no regulation of crypto. If the price of Bitcoin falls before your company exchanges it for fiat currency, you may incur a loss on the transaction.

As you can see, accepting Bitcoin for payment has both benefits and drawbacks. Of all the currencies, you should definitely choose Bitcoin, as it is the most popular one among people. It has extremely low fees and gives you complete control over all payment returns. It may be a good option if you have a lot of younger customers, but it has a limited capacity. In any case, some people are concerned about its security. Furthermore, if your wallet is stolen, all Bitcoins in it are permanently lost. Finally, if the price drops before you exchange it, you may lose money on the transaction. There are always some risks, but there are also many benefits. In the end, it is entirely up to you whether you want to accept it or not.