With Bitcoin crossing the mark of $22,000, entrepreneurs adopt cryptocurrency as a payment method to fear missing out on long-term business growth opportunities. The reason for this surprising surge in price, when the world’s economy is suffering a blow, is people looking for better returns than savings in bank deposits in this Covid-19 crisis. However, business owners need to make sure they work with an experienced cryptocurrency accountant and plan before they invest.
Businesses are now taking cryptocurrencies seriously and making them an available payment mode. Microsoft, Wikipedia, AT&T, along with many other big companies, have started accepting payments in Bitcoins. A few banks have also indulged in accepting deposits in Bitcoins. Bitcoin ETFs (Exchange Traded Funds) have become a common investment these days. https://www.bitcoinrevolution.org/ is a site that provides you with easy and trusted Bitcoin trading options.
Apart from the usual use of Bitcoin as a payment mode to accelerate business growth, there are various ways it can benefit your business.
- Lower Payment Charges
One very likable advantage of Bitcoin is that the charges of payments are minimal. Card-paying fees can be complete extortion and work against the growth of your business. Bitcoin provides you with the scope to choose how much expenditure you can afford to incur. Furthermore, you will not be charged fees for accepting Bitcoin.
If you choose to use Bitcoin for other services like utility payments, you don’t have to use a business credit card every time. As there is no bank or financial authority involved, there are no bank charges for using Bitcoins. This makes the overall cost across the board very reasonable. Now that businesses worldwide have started accepting payment in Bitcoins, there will be no currency exchange, which also charges fees.
- Protection against Fraud
Fraud is a nightmare for businesses of all scales operating online, especially those who deal with financial transactions. Hacking accounts and chargeback frauds are very frequent incidents that can be combated with Bitcoin’s increased security. Fraud is about losing money; it also causes a breach of confidence among clients whose sensitive information is not safe.
How Bitcoin helps in this is first, there is no scope for permissible chargebacks as every transaction with Bitcoin is final. There are no reversed charges applied. Secondly, transactions are strictly encrypted. Even the identity of those involved in the transaction cannot be extracted, and making a fake transaction is practically impossible.
- Connect with International Clients
Recently e-wallet and card payments have paved their way into every business as these options broaden the potential client base. Similarly, acceptance of Bitcoins opens up a world of possibilities. Businesses trading internationally prefer Bitcoin as it’s an easy way of transfer and cost-saving with added security. An international wire transfer can take days to reach, while a Bitcoin payment can be made within 5 minutes or an hour.
- Media and Brand Awareness
Fiat currencies are common, but cryptocurrencies can generate publicity. Bitcoins are always in the headlines, and they are covered majorly by the press as it is still mysterious and people have very little knowledge about them. So accepting Bitcoins provides you marketing exposure and creates brand awareness by highlighting your business as a forward-thinker in your domain. Your business gets this potential free advertisement by only dealing with Bitcoins.
- Raise Funds for your Business
Investors, entrepreneurs, and venture capitalists are looking for ways to include cryptocurrencies to grow their business. Startups have been highly benefited from using initial coin offering (ICO) and token sales to venture capital and public offerings as their source for startup funds.
Tezos is a startup that raised about $232 million through ICO, and Bancor has raised $153 million. Such funds for startups are raised in a platform called Ethereum. The option of creating their own cryptocurrencies is given to all the developers. There is a cryptocurrency token issued instead of a stock certificate. Now, investors can invest in startups with a token sale. This is a smooth way to participate in funding, where you don’t need to wait for a company to go public.
- Track Inventory
Every transaction you make with a Bitcoin is tracked and recorded. Anything you are buying, selling, and shipping will be recorded, helping you maintain inventories. The only thing which can also be interpreted as an advantage is that no record can be changed or deleted. Only the miners have the authority to audit and monitor. This also eliminates the need to use expensive software to track your inventory.
- Smart Contracts to Sign Agreement
Contract agreements are a significant part of businesses. The agreement can be to render a service and collect the money once it is delivered. It can be a contract to buy and deliver goods once it is manufactured, etc. The traditional process of an agreement involves a lawyer who drafts the contract between the business and the client. The contract makes sure that if one part of the deal is fulfilled and the other part is not, there is a possibility to sue them.
But, Bitcoin makes this process a little more portable and easy. This process is called smart contracts. A smart contract is digitally signed between two parties. Once the specified conditions are fulfilled, it is executed. One such blockchain service is Agrello, where you can sign a contract without a lawyer’s presence. It provides you with a feeling of security as there is no way to step back from the agreement. You get your payment when the services are delivered at an agreed date.
There is no way to alter the agreement, and it is constantly monitored to make sure the conditions are met. Once products or services are delivered, the cryptocurrency is automatically exchanged without physically doing anything.
Create a side business of Bitcoin mining
When Bitcoin was introduced, mining could have been done profitably with a home computer. As it’s a very competitive business now, even the fastest computers are not good enough as you are required to be the first one to find the correct hash.
The first step to creating a Bitcoin mining business is using Application-Specific Integrated Circuits (ASICs). These are specially curated to mine Bitcoins and other cryptocurrencies. An ASIC setup that can solve calculations on its own can cost you about $12,000.
However, there are options to curb this expenditure by pooling resources. Business owners can join a mining pool where miners join resources and share their hashing power, and the rewards are split amongst the members.
Another profitable way to do this is when business owners mine through the cloud. In such cases, business owners provide mining resources on lease from a cloud-based provider. Then the resources are clubbed with other resources leased by different business owners.
How can mining make money?
Mining Bitcoins is very similar to participating in competitive auditing. Businesses are given the responsibility to verify Bitcoin transactions by guessing 64-digit hexadecimal numbers, known as “hashes.” The first one who guesses a hash close to or equal to the target hash is given Bitcoins and a transaction fee.
The mining of Bitcoin is designed in such a way so that every four years, the reward is halved. If the total reaches 21 million Bitcoins, there will be no more awards. As the reward keeps decreasing, the amount of transaction fees increases to maintain a balance.
Offer a digital wallet.
As people indulge rapidly in Bitcoin transactions, what is lacking is a secure place to store Bitcoins. Your business can be the center of attention if you offer a digital wallet. However, digital wallets also become prime targets for hackers. Your company can outshine as a security vault for Bitcoins when you partner with a technology company that can offer highly designed security to these wallets. You can reap huge profits.
Incorporate Applications related to Bitcoin
There are many applications relating to cryptocurrencies that do not require a lot of your time to earn a profit. Bitcoin teller machine (BTM) is an application like this, it works in the same way as ATM.
One needs to register their new account with the required details. A QR scanner is used to scan their Bitcoin wallet address. People are required to enter the number of USD bills into the Bitcoin kiosk to plan to purchase Bitcoins. Once the money is inserted, the Bitcoin ATM provider circulates the Bitcoin belonging to the customer by broadcasting the transaction to a blockchain. The transaction is recorded and becomes visible to the Bitcoin network. After the transaction is confirmed, the customer becomes the owner of the Bitcoin, and it is spendable.
Bitcoin can have a tremendous impact on your business. It has a thriving potential and can make your business outshine among others in your field. You stay ahead of competitions and can even fund your business. There is no way you are letting go of this opportunity to make your business reach new heights.