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Thursday, October 1, 2020

How The Bitcoin Revolution Will Affect Businesses?


Wazzup Pilipinas!

Bitcoin is the first commercially successful cryptocurrency that made its mark for the first time in 2015 when more than 100,000 businesses accepted it as a valid currency. These businesses included industry giants like Microsoft, Dell and Overstock.com.

It has been several years that cryptocurrency is accepted by the masses, but for some reasons, small businesses and entrepreneurs still hesitate to include it in their transactions. Let’s take a closer look at the Bitcoin Revolution and what does it mean for your business.

What is bitcoin?

Simply put, bitcoin is a cryptocurrency which is entirely digital invented in 2009. It might not sound interesting, but the astonishing fact about bitcoin is its purely person-to-person currency with no involvement of any central agency such as banks, financial institutions or government bodies. It relies on a technology known as a blockchain, which keeps bitcoin transactions safe, secure and transparent.

Due to its digital format, bitcoin is extremely fast, cheaper and offer an easier exchange of cash that could benefit many small businesses.

Overall, the main asset of bitcoin is its decentralised nature that frees you from relying on any bank or financial institution to process your financial transactions.

Why must you consider bitcoin?

1. No fees

As a small business, you already struggle with budget and have to compete with deep-pocketed big brands. Levying a 2% to 3% merchant transaction fee will drain out your cash flow and you won’t be able to offer your services or products to customers at a competitive rate.

Bitcoin comes to rescue here as typically transactions with this currency will cost you zero to one per cent. Yes, it is not a typo but how this cryptocurrency operates. You can easily participate in Bitcoin transactions with no fees attached. As there is no bank to verify each transaction, you do not have to sacrifice a percentage of your revenue to these financial institutions.

However, you might have to pay a very small transaction fee to speed up the process.

2. Extremely Fast

Another problem with the usual currency is that you have to wait for long for your money to arrive in your bank account. With bitcoin, as there is no centralised institution to check every transaction, the blockchain handles this requirement, speeding up the process. You don’t have to wait nearly as long to receive your payment as bitcoin transactions are processed quickly, usually within a fraction of time as compared to fiat currency.

3. No borders

Another extremely useful feature of bitcoin is its true global presence. This has to do with its decentralized nature. If your business deals with international transactions, then you can rely on this cryptocurrency to get rid of foreign transaction fees and exchange rates.

As a global currency with no intervention of a government or financial institution, bitcoin completely ignores border restrictions. This benefit can be seen working for the sports betting industry in the United States, for example. 

In the US, the Unlawful Internet Gaming Enforcement Act (UIGEA) Legislature that was passed back in 2006 made it illegal for banks and financial institutions to process online gambling transactions, forcing many big betting sites to exit American markets and drop American customers. 

Bitcoin came as a rescue as it has no restriction of the law and allowed American gamblers to bet with their favorite sites. A bitcoin sportsbook allows you to bet on your favourite sport, even if it is illegal in your country of residence.

4. No payment disputes

Bitcoin is a cryptocurrency, but it works exactly like cash rather than credit. All bitcoin transactions are final and cannot be contested by a customer later on. For instance, if he or she didn’t enjoy the services you provided, they cannot dispute the payment. If your business is struggling with customers disputing their credit card payments, then switching to bitcoin will be helpful.

5. Great investment opportunity

If you are an investor then you can make money with bitcoin by investing in its value. Just like other currencies, bitcoin fluctuates in value. However, note that it is less stable than gold and other communities and its value fluctuates a lot.

In some cases, fluctuation can be a drawback of accepting bitcoin but as an investment, it has a large upside.

We recommend that you consider bitcoin for your small business as its advantages outweigh its cons to a great extent.

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