04 Jul Taking A Look At The Pros and Cons Of Bitcoin For Small Business
Bitcoin! This has been the most popular form of Cryptocurrency since its inception.
And with every passing day, it is becoming more acceptable to not only usual investors but also to common people and institutional investors.
A number of enterprises and giant companies have also started implementing Bitcoin in their business operations.
When more common people are investing in Bitcoin through trusted platforms like bitcoin up. The number of retailers who are accepting Bitcoin or some other Cryptocurrency payments is increasing now.
Several countries and governments are also launching new regulations regarding Cryptocurrencies. El Salvador has become the first-ever country to recognize Bitcoin as their official currency, just like any other Fiat currency, like dollars or euros.
If you are also thinking about including BItcoin in your business and making the transactions and payments through Bitcoins, you can go ahead. At least, this is what experts are saying.
But, it is best to know the depth of the river before you jump into it. After all, you do not want to suicide. Bitcoin comes with its own benefits and drawbacks for small businesses. Here, in this article, we will let you know about them.
The Advantages Of Bitcoin For Small Businesses
In the United States, more than 2,300 businesses have started accepting Bitcoin payments and transactions. They have done this because they are getting some benefits from that. When you include Bitcoin in your small business, you will get the following benefits.
1. Lower Transaction Fees
High credit card fees have always been a headache for small businesses. That is why a lot of small businesses do not accept credit card payments. At the same time, any payment option beyond cash always encourages customers to spend more.
That is when Bitcoin payments can save you and bring you the opportunity you were missing. When credit card fees vary from 2% to 4%, Bitcoin transaction fees are really less also for international transactions.
2. No Chargebacks
When you are accepting Bitcoin payments, you can be sure about one thing; the purchases are final. This offers you an amazing opportunity to save money. Buyers can not dispute a transaction or reverse a transaction with Bitcoin.
It protects small businesses from chargeback fraud. When the customer has paid with Bitcoin for any purchase, they can not claim that the goods were never received or defective.
3. Quick Payment
Bitcoin transactions have a pretty reputation for speed. It only needs a few minutes in order to complete a Bitcoin transaction. Even when you are going through any third party, Bitcoin payments are received and also can be converted into cash much faster.
If you already have done business with credit cards, you might know that in some cases, your funds can be locked up for a week or more than that. But with Bitcoin, it only takes around 2 days.
4. Simple International Transactions
International transactions with Bitcoin are completely fine. Not only just fine, but it is also indeed amazing. Credit card rules do vary from one country to another. In the case of Bitcoin, there is nothing like that.
It means your small business can accept international payments and that too without any additional cost or barriers.
The Disadvantages Of Bitcoin For Small Businesses
Everything comes with positive and negative signs. The scenario is the same with Bitcoin as well. Along with all the above-mentioned advantages, Bitcoin also comes with the following disadvantages.
Security is another issue with Bitcoin. Users who manage their own Crypto wallet might lose access to their entire Bitcoin holding in case they lose their wallet or device. The case is also the same for losing or forgetting the password.
On the other hand, users who are allowing any third-party vendor to manage their wallets might encounter any type of attack or theft.
On the basis of the online market dynamics along with a lot of other factors, Bitcoin fluctuates. The year 2022 started with a value price of Bitcoin of more than $47,000, and after half a year, by the starting of July 2022, the price had dropped to around $20,000.
So, you see the value of Bitcoin decrease rapidly; it means your business can get through a loss.
Stay Ahead Of Business Trends
These are the benefits and drawbacks you will encounter when you are accepting payments through Bitcoin. So, before you start Bitcoin transactions for your business, you need to think about handling the drawbacks.