Top 8 Reasons Why Businesses Should Adopt Bitcoins
With giant retailers like Microsoft, Dell and Overstock accepting bitcoin payments, other business should not be left behind as well. Forward-thinking businesses round the world are busy joining the cryptocurrency trend with the aim of improving their cash flows, reducing transaction costs and scaling geographical barriers. But is accepting bitcoin payments a worthwhile endeavor for businesses? Discussed below are 8 reasons why business should adopt payments in bitcoins.
1. No Third Parties
Most payment options often involve a third party. For instance, when you have money in your bank account, it is the bank that has the ultimate say despite the money being yours. If they deem it necessary, they can freeze your accounts and render you moneyless. As a business, this can result in a lot of losses. With bitcoins, only the buyer and the seller are involved and they are not under the mercy of anybody. When you buy bitcoins, you get to store them in your wallet. You can transact using the bitcoins if you so wish without any external influence.
2. No Government Influence
Since bitcoins are not regulated centrally, the government does not have the power to keep an eye on your transactions. Bitcoin transactions do not reveal identities of the transacting parties. The government cannot take away your currency like it happened in Cyprus in 2013 when the government decided to take away money that belonged to private investors because the economy was not performing well. The people who had saved money in their bank accounts could not help as they watched their savings sublime. Bitcoins are not controlled by the government, as such, you can always be assured of the safety of your bitcoins.
3. Reduced Incidences of Fraud
Business that accept bitcoins can be generally classified as being fraud-free. Whereas all the transactions are internet-based, their working is similar to that of cash. This currency cannot be counterfeited. Once you authorize a payment and it goes through, the details of the transactions get stored in a public ledger where anyone can access them. The transactions, once complete, are irreversible. Credit cards get hacked all the time by fraudsters. Bank accounts can also be hacked and funds transferred. Minor errors in name details, for instance, can result in funds being transferred to the wrong accounts. But with bitcoins, business can rest assured that their bitcoins are stored securely without any chance of being stolen.
4. Global Currency
Bitcoins can be used by anyone from whichever part of the world provided that the said persons can access a computer or phone, and internet connection. The people in America use the same bitcoins as those from Australia, Africa, China or even India. This is a global currency with the same structure and uses all over the world. A person in South Korea can use bitcoins to make a payment for goods in Brazil. By paying using bitcoins, people will have avoided the need to exchange the currencies which can be very costly. Bitcoins allow people in different parts of the world to transact without having to go through foreign cash exchanges.
5. Cheaper Costs
Digital currencies cost very little to transact with as compared to the normal currencies. When transacting using normal currencies, banks will charge you for handling the money and will levy high exchange rates that favor them. This is not the case with cryptocurrencies. Most bitcoin transactions cost about 1% of the total transaction value. Since there is no third party to levy unreasonable transaction commissions, businesses will really find this to be convenient. This lower cost will be transferred to the consumer who might find it cheaper to buy more goods. This means well as businesses will continue to grow.
6. New Markets
The use of digital currencies has enabled businesses to access new niche markets that might not have been accessible before. For instance, in some parts of Africa and Asia, very few people have access to good banking services. This often locks them out as they cannot transact with people in other geographical areas. Since digital currencies are decentralized, they can be used remotely as long as once can access a phone and mobile internet. This allows merchants to trade with people in areas that were previously termed as being primitive and inaccessible. Adopting this digital currency means that you can obtain goods from the remotest part of India or Brazil where people cannot access banks.
7. Competitive Edge
In order for your business to be able to stand out, prospective customers must find it to be appealing. Your business will look tech-savvy by adopting cryptocurrencies. You will be able to get customers from all over the world for your goods or services. A business that provides its customers with several payment options, including the option of paying using bitcoins, is more attractive than a business that only allows payments made using credit cards. Being able to stand out and becoming an industry leader is the dream of every business.
8. Faster Transaction Times
Normal transactions often take a very long time, especially when making international bank transfers. You might have to wait for up to one week before funds can be successfully transferred from one country to the other. It is even worse when you want to transact during weekends or holidays. The delays can be frustrating. However, with bitcoins, you can complete a cross-border transaction in just a few minutes. Cryptocurrencies can be used at any time of the day, and at any day of the year. You can transact during holidays, weekends or even at night. Faster transaction times mean good for business.