You may have heard of or used Bitcoin, but have not realized that it is an alternative form of business currency that can help in the growth of the company. Before understanding how cryptocurrency works, it is imperative to know what Bitcoins are. Bitcoin is an entirely digital form of money or cryptocurrency that was invented in 2009. The main thing that sets bitcoin apart is between person-to-person and is not linked or connected virtually with any banks, government bodies, or financial institutions that stand in between a person and their money.
Bitcoin is based on blockchain technology that is specially made to keep the bitcoin up secure from any kind of fraud. The digital format of a currency makes it cheaper, faster, and easier exchange of cash that can highly benefit small businesses. In general, the assets of Bitcoin come from its decentralization. The Blockchain technology was made to not allow users to be dependent on any financial institution.
Let us know some great reasons why small businesses must consider bitcoin, which are as follows:
Waiting for money that arrives in bank accounts is quite frustrating. Considering bitcoin is beneficial as there’s no particular centralized institution that keeps track of every bitcoin transaction. There’s only technology, a blockchain that maintains a check on every purchase. Therefore, the user doesn’t need to wait for so long to receive the payment.
The transactions are processed efficiently and quickly. It hardly takes any time and is not like banks or other financial institutions.
No fees required
If some percentage of your cash gets drained in merchant transaction fees, then you must opt for bitcoin. Unlike 2-3% fees on merchant transactions, bitcoin transactions hardly cost between 0-1 per cent. There are no fees attached when sending or accepting bitcoins as payments. Users don’t need to sacrifice their revenue to verify the transactions; there is no bank involved. To speed up the processing, users also get to option to pay a small number of fees on small purchases.
Bitcoin fluctuates in its value, just like other currencies. When we talk about stability, bitcoins are quite a bit less stable than payments like gold, cash, and other commodities. The fluctuation in bitcoins can either be counted as a drawback or as a significant upside. Some people consider it as a benefit as by accepting bitcoins, users need not wait about the cash. This is based on the chance if the value of bitcoin increases.
No global restrictions
There are numerous countries, and each one of them has their currency. So, if you want to make international trade, you will have to make the payments in the foreign currency, which will include different charges. It increases your costs and lowers your profits.
Bitcoin is an excellent solution to this issue as bitcoin can be used as a medium of exchange all over the world. There are no geographical restrictions that impose on Bitcoins. So, if you want to take your business to the International level, bitcoin would be of great help to you. It will make receiving and sending payments over the borders quite convenient.
Read more: How Secure are Bitcoin Transactions?
No payments reversal
It is irrefutable that bitcoin is a virtual currency, but it is no less than real cash and offers the same benefits. If we talk about other digital payment methods such as credit cards, then it provides the power to the buyer to reverse the payment at any time. This leads to various payment disputes and can cause some severe problems in your business.
If you are using bitcoin, then you need not worry about it, as a payment made with bitcoin cannot be cancelled or reversed at any cost. So, bitcoin transactions are safer and help you to stay away from any type of payments issues and disputes.
Confidentiality of the transactions
Usually, when you make a transaction using a debit card or credit card, your personal, as well as bank details, are disclosed. So if you want to do business without revealing your real identity, then bitcoin is a great option. Bitcoin offers an exceptional level of secrecy, and all your transaction history stays private.
Adding to it, when you make a bitcoin transaction, no personal information is revealed in it. So, if you want to trade being anonymous, then using Bitcoin as the currency is an ideal solution.