Cryptocurrency like Bitcoins is one of the most popular technological advancements of today. This virtual and decentralized financial system has proved to be more lucrative for people in comparison to the traditional financial systems that have been in existence for ages. With time, the financial systems of the world are also undergoing a lot of change.
What is Bitcoin?
Being one of the first cryptocurrencies to be discovered, Bitcoin is an open-source platform that allows transactions in the absence of a centralized controlling entity and works on blockchain technology. It can be said that bitcoin is “programmable money” and with constant developments, it can soon revolutionize the financial infrastructure. For more information on bitcoins, click here.
Bitcoins for Small Businesses
Although the common notion is that bitcoins have proved to be beneficial for corporate giants like Microsoft and Facebook, it has been noted that bitcoins have been beneficial for small businesses as well. Here are a few reasons why you should consider bitcoins for your small businesses:
- Zero fees and operational costs: In a traditional financial system, small businesses have to bear the brunt of processing charges and fees as the finances are controlled by the government. However, bitcoins run on decentralized blockchain technology and are not controlled by any single agent. It can be accessed from anywhere across the globe. As a result, small businesses can save up more by escaping processing charges, fees, and heavy taxes on regular transactions.
- Time-effective: While it may take days to obtain finances from a traditional bank, dealing in bitcoins is fast and therefore, time-effective. Bitcoin transactions are as fast and simple as credit card transactions owing to the absence of too many controlling agencies.
- Easy accessibility: Another advantage of dealing with bitcoins is that small businesses can transact from anywhere across the globe. This makes bitcoins an excellent option for foreign customers of your small business. Bitcoins are not tied to any single government and can be called a “global currency”.
- Better investment opportunity: It is anticipated that cryptocurrencies like bitcoins will gain widespread popularity in the foreseeable future. That is why the returns on investing in bitcoins is going to be higher than tangible assets such as gold or real estate. Although there exists a certain degree of volatility in its value, it is comparatively more stable as compared to cash. The value of a bitcoin rose from $2 to $1242 between 2011 and 2013. Needless to say, there is a huge potential for bitcoin investments in the future.
- Safer system: Bitcoins function on the blockchain technology which does not have any central repository of data. As a result, it is difficult to tamper with or hack. Bitcoins provide a much safer transaction option as compared to traditional online and offline payment systems.
- Attracts new-age customers: With the increasing popularity of bitcoins, more and more people from the millennial and Gen Z age groups are shifting to bitcoin systems. By incorporating bitcoins in your transaction options, small businesses can attract a host of new-age customers who prefer to transact in cryptocurrencies like bitcoin.
- Better brand visibility: Being bitcoin-friendly distinguishes your business from your competitors. It can be one of the main points in your brand’s advertising and can attract millions of customers who prefer to transact in bitcoins or other forms of cryptocurrencies.
In terms of adaptability, there is still a long way to go for cryptocurrencies like bitcoin. Entrepreneurs are encouraged to invest in and adopt cryptocurrency as it has endless opportunities for expansion in the future. However, small businesses should be prepared to adhere to the legal procedures related to bitcoins established by sovereign governments across the globe.