How to Know if You’re Equipped to Accept Crypto Payments
Bitcoin is a type of decentralised digital currency that fluctuates in value the same way stocks often go up and down in a volatile market. Seeing as the value adjusts according to the market, it’s become a safe haven for investors and other companies who have turned to cryptocurrency to ride through the economic uncertainties.
Paying with bitcoin can do wonders for growing your business since it skips the arduous process of conventional transactions all while providing a secure way to access global markets, but the question stands: do the benefits outweigh the risks?
Breaking Down the Pros and Cons of Bitcoin For Your Business
The Pros
Pro #1: Low Transaction Fees
Having multiple payment options can enhance your customer experience, but it’s also a costly move since paying and receiving payments through credit cards or tools like PayPal. The charges can take away two to four per cent of your transactions, which can build up eventually and deal a blow to your revenue.
On the other hand, bitcoin offers lower processing fees, allowing you to save thousands of dollars worth of charges that you use for other important functions in your business.
Pro #2: Fast and Secure Transactions
Cryptocurrency is known for being one of the safest ways to process payments, but keep in mind that it doesn’t keep your transactions completely anonymous. Some cryptocurrency exchanges can still be recorded in a blockchain like receipts, though it still guarantees unprecedented security since it uses blockchain tracking.
With blockchain technology, paying with bitcoin means every coin and wallet of each user is recorded. This means users can get bitcoin as soon as the processing is complete, but the best part is that the transaction is virtually fraud-proof!
The Cons
Con #1: Lack of Territorial Regulation
Bitcoin is definitely a buzzword throughout the world, but since it hasn’t been established, it lacks the proper regulations for making transactional fees, especially if you consider how prices vary depending on the state’s regulations.
The lack of territorial-based regulations makes bitcoin tricky to use, especially for paying expenses like employee salaries, supplier fees, rent, and other vendors that predominantly use non-digital money.
Con #2: Risky and Unappealing for the Mass Market
Blockchain and other cryptocurrencies sound unstable for underdeveloped markets and mass consumers, so bitcoin payments seem to flourish for tech-savvy niches. As for other demographics around the world, bitcoin is still in its developmental stage, so it will be difficult to convince people to trust this highly modern mode of payment.
The Bottom Line: Breaking the Barrier in Your Business Using Bitcoin
Blockchain technologies like bitcoin continue to make waves throughout several industries, but despite its novelty and mainstream popularity, it’s still an elusive form of currency for businesses. As an established company, it’s only natural to stick to traditional financing options that have earned its legacy through years of reliable service and legal protection.
However, reaching success and strengthening your foothold in the industry involves taking risks, especially when the leap pushes you to innovate your business. If your business caters to a market that knows and trusts cryptocurrency, it’s worth the effort to push your digital shift further ahead.
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