Any small business that wants to survive in the highly competitive online marketplace must embrace ideas that can enable it to generate more income. Although there is much space to apply the standard practices of management and operations, start-ups need to experiment with methods that can enable them to reach more markets. One such idea is the digital currency that’s primarily dominated by Bitcoin. Small businesses that use the globally recognized Bitcoin can tap into additional markets and acquire new clients. And currently, many small businesses have the propensity to embrace Bitcoin due to multiple reasons. Please, keep reading to discover the reasons behind this.
Quicker Transactions
With many business needs, small enterprises prefer rapid payment methods. The standard methods can take time before transactions are complete, and delays mean opportunities lost. With Bitcoin, the narrative changes as transactions are completed rapidly. Settlements through Bitcoin are quick because it is decentralized and doesn’t require any middlemen or controlling authorities.
And when you use software like the Bitqs app, you can finish your transactions on the go. In many instances, Bitcoin transactions take place in real-time. For a small business, high financial settlement speeds are a reward to your enterprise.
Cross-boundary payments
Businesses that conduct international transactions require quick payment solutions. However, in most cases, such businesses rely on traditional payment options that take time to complete. For instance, payment through banks can take time, and cheques don’t help the situation. Some payment options, like PayPal, are illegal in some states. Bitcoin eliminates these challenges because of its various perks. The decentralized system that Bitcoin uses enables users to send or receive money without third-parties like governments. Furthermore, transactions through Bitcoin happen in real-time or take a few minutes.
No chargebacks
Amongst the challenges that small businesses face include the presence of chargebacks and payment disputes. These issues can eat into the profitability of your business.
If you’re using Bitcoin, however, these risks aren’t there. The peer-to-peer system isn’t controlled by external authorities who may want to arbitrate on transaction disputes and probably return the money.
Minimal Transaction Fee
A significant pain point of small businesses while making transactions is the high cost they encounter. Many payment processors have different amounts they charge as transaction fees. Most of the charges are high and may eat into the profits of small businesses. Bitcoin, on the other hand, charges a small amount that is less than 1%. When payment is peer-to-peer, no charges are involved.
In the past, merchants in the US have paid more than $78 million in charges linked to credit/debit card processing. Because of the decentralization nature of Bitcoin, merchants only pay a smaller fee or carry out their transactions without costs. Third-parties who verify transactions are no longer needed, as this is a peer-to-peer system.
Expansion of markets
While few older adults are embracing Bitcoin, many are malicious about it. Most millennials, however, are warming up to Bitcoin. Small businesses accepting Bitcoin payment can attract more millennials to their business. And this means more clients and enhanced sales volumes.
Many Bitcoin enthusiasts like miners and innovators can be glad to support businesses that embrace digital currency. By accepting Bitcoin, you can reach out to this market with your goods and services.
Diversification of money
Investors understand the significance of the principle of diversifying assets. The old generation understands this concept by, for example, holding multiple currencies and practicing foreign currency exchanges. With the emergence of digital currencies, many people use Bitcoin as a payment method and as a kind of store of value.
Hedge against inflation
Bitcoin operates independently through the support of the blockchain system. The digital currency isn’t tied to any external regulators or monetary policies. It’s, therefore, more stable as it suffers no political risks.
Countries can develop policies that encourage the printing of more currency notes, a situation that may precipitate inflation. Because Bitcoin rules demand a specific amount of currency that should circulate, it isn’t prone to inflation.
Standard currency loses value when the issuing authorities release more money. Bitcoin, however, is capped at 21 million, meaning its capacity is reduced. This capping may make Bitcoin an alternative hedge against inflationary pressures.
Bitcoin is a form of investment.
While small businesses can receive Bitcoin and convert them into fiat currency immediately, they have the option of holding it till its value goes up. When the value increases over the initial amount received, that value is retained until you trade Bitcoin.
Multiple wallets and Flexible holding choices
The many Bitcoin storage options give small businesses a level of flexibility. In this regard, small businesses have five choices, including:
- desktop,
- web mobile
- hardware
- paper
While small businesses are free to choose any options suitable for them, it’s advisable to select web Bitcoin or mobile to enable peer-to-peer Bitcoin transactions.
Global Currency
Bitcoin is an international currency that doesn’t need any foreign exchange. Small businesses that engage in international trade can immensely benefit from digital currency because of the minimal transaction costs. So it makes sense to use Bitcoin to avoid the vast expenses of the traditional methods of payments.
Paper options may be obsolete soon.
With the support of blockchain technology, digital currencies, including Bitcoin, are steadily gaining popularity. Small businesses should embrace this means of payment and have in-depth knowledge about it. The early adopters of the technology will reap massive perks. And resisting the change may not help you as you’ll be postponing the inevitable. By embracing fintech, you’re setting yourself apart from the competition.
Security
One of the challenges facing standard payment methods is the exposure of client information to scammers and government authorities. If scammers find the data, they can use it to steal from the clients.
Unlike other payment methods like credit cards that can expose client information, Bitcoin operates on blockchain technology, leaving any trace of client information behind. So, customers using digital currency are assured of their safety as fraudsters can’t access their information.
Furthermore, due to the lack of third-parties to oversee digital currencies, clients are assured of accessing their assets without any fear of freezing. Remember how PayPal froze the assets of WikiLeaks.com.
Brand Awareness
You’re likely to enjoy massive amounts of publicity if your small business starts to accept Bitcoin as a payment mode. With the acceptance, you can get an opportunity to list your business in famous directories like Spendbitcoins.com and Coinmap.org.
Due to this step, your business can also receive media coverage from the local news outlets. All the media publicity stunts help create awareness of your brand, leading to more client acquisition.
Additionally, you can apply a press release to create more awareness. Beginning to accept Bitcoin is a big step that should prompt you to one. And this formal announcement can boost your brand’s awareness campaigns.
Ease of Use
Bitcoin is pretty simple to use. And as the technology behind it keeps improving, you expect the digital currency to be much easier to use in the future. As a micro-business, you don’t need to understand the technology behind Bitcoin’s development entirely. An essential thing to understand, however, is how to safeguard your Bitcoin wallets and coins.
Improves business reputation
A decision to start using Bitcoin can boost your brand’s reputation as many people will view it as flexible and trustworthy. Such a step can also attract clients who like using Bitcoin but don’t find many online businesses accepting it as a payment mode.
Upon accepting Bitcoin, audiences will also view your brand as forward-looking and ready to take steps that improve their experience. And it also demonstrates that you’re a leader in your field, especially when other brands aren’t using Bitcoin.
Mobile Payments
Mobile payments are now popular options for many businesses. They allow individuals and businesses to conduct transactions while on the go. With the use of apps, you can also conduct your Bitcoin transactions via either Android or iOS devices.
Built-In Scarcity
Bitcoin has a unique built-in quality that allows only 21 million to be available. This feature makes it have a long term value compared to other currencies. The intrinsic value of Bitcoin is comparable to gold and other precious commodities.
Because national governments control the issuance of fiat currencies, they lack the scarcity feature. Sometimes, central banks can print many currency units that may create inflation in an economy.
Gradually being accepted
Many merchants are gradually embracing Bitcoin, and soon it will gain mainstream acceptance. It’s therefore critical for any business that’s forward-looking to embrace it.
Final Thoughts
Businesses grapple with the high costs of transactions. For a small business, the costs can eat into their profits at a time they require enough capital to expand their enterprises. Accepting Bitcoin can save you on these costs because the system is free, or in some cases, charges a small cost. There are also multiple other reasons for choosing digital currency, as elaborated here. For example, the payment system is more secure, quick, and can attract more clients.
