Bitcoin has been influencing the entrepreneurial world for years, both as a payment method and an investment strategy. This is nothing new.
Merchants have been investing in point of sale strategies that reduce fees and simplify transactions for centuries. Cryptocurrencies are merely a new rung on the ladder towards quick, secure payments.
300 000 Bitcoin transactions are completed daily, so it will take time for cryptocurrency to become as widely used as money. This hasn’t stood in the way of early adopters, though. In 2014, 80 000 businesses were accepting Bitcoin, a move that had obvious benefits for their bottom line.
Businesses are in a unique position when it comes to Bitcoin investments. With the capital your average business has on hand, they can achieve profitable hashrates through Genesis mining and similar cloud-based tools.
When it’s time to pay your bills, cryptocurrencies add yet another attractive characteristic: superior security for both your wallet and your data.
Cutting Transaction Costs
Your average retailer spends about 2% of their income on card processing. Add banking fees, interchange fees, and monthly machine rentals and you have enough point of sale expenses to give your accountant a migraine.
Cryptocurrencies don’t come tax-free, but they’re certainly independent of the banking industry, so you can wave goodbye to the monster that’s eating away at your well-deserved profits. As a side benefit, you get to participate in a movement that may one day convince the banking sector to start offering more user-friendly services. You also pay little to nothing to convert your currency to dollars.
The Benefits of a Cash Free Society
Cashless payments put you in a safer position, but before Bitcoin, the only alternatives were credit and debit cards that come with steep fees for all involved. Cryptocurrency lets you empty your point of sale of its money without adding to your expenses. Credit card disputes become a thing of the past, and high risk buyers can be dealt with more securely.
E-Commerce and Market Share
E-commerce has made the world seem smaller, but for merchants, it also increases access to market share. Why target only those in your state when there are people in Europe eager to try your products? Bitcoin is the obvious solution to e-tailing. It keeps your buyers protected from data theft because every transaction comes with its own code.
Data hacks are routinely crippling large merchants, and it’s time to reconsider the way the business world thinks about money. Bitcoin can be traded anonymously, giving your clientele more privacy than has been possible before.
Charge Back Preventions
Consumers can dispute their purchases and request chargebacks when paying by credit card. This leaves merchants at the mercy of card companies in more ways than one. You can be charged as much as $15 in fees for a single chargeback. Bitcoin payments are like cash in this sense, giving merchants power over their refund policies.
It can take over a week to unlock funds when a chargeback has been requested and an escrow is in use. With cryptocurrency, you will wait no longer than two days for your payouts. Transactions are settled the moment the client pays, and you can instantly convert it to your own currency. Generally, merchants convert their bitcoin at the end of each business day.
Bitcoin transactions rely on blockchain technology, which creates an independent record of each transactions that is entirely unchangeable. This adds a new layer of security to your payments, keeping records accurate and immune to error.
In July 2017, Bitcoin were valued at between $2400 and $2600. No wonder central banks, large corporations, and financial businesses are snapping up cryptocurrencies and using them to finance start-ups, digital assets, and investment portfolios. The currency is volatile, and at that price, buying it as an investment is risky, but if you’re trading in the currency, you’re free to retain it as an investment.
Bitcoin is more than merely a currency—it’s a movement that could one day change the way global economies react. Its practical implications for corporations and retailers can no longer be ignored.