While bitcoin has been around since 2009, it really didn’t jump into the mainstream until late 2017 when the price skyrocketed to nearly $20,000. At that time, everybody was scrambling to figure out how they could get their hands on some bitcoin.
Bitcoin has since dropped to a healthier level of between $8,000 and $10,000 and interest in cryptocurrency remains.
While we realize that bitcoin is ultimately a good thing and presents a heap load of benefits, is it a good thing for small businesses? Well, in this blog post, Coin Cloud discusses the benefits that bitcoin poses for small businesses.
What is Bitcoin?
According to Dictionary.com, “Bitcoin is a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.” Bitcoin exists on the blockchain, a public ledger that records all transactions. All transactions recorded to the blockchain are final and unable to be tampered with.
The Benefits of Accepting Bitcoin
Bitcoin offers small businesses several benefits that they should be aware of:
● Lower transaction fees: Blockchain allows buyers and sellers to circumvent third-party financial institutions. This means that by accepting bitcoin, small business owners don’t have to pay the high transaction fees associated with accepting debit and credit cards. Sometimes these fees can be as high at $0.25 for every transaction plus 2–4% of the total transaction.
● Merchant protection: Blockchain also protects merchants from fraudulent chargebacks. All transactions that take place on the blockchain are final and unable to be tampered with.
● Increased sales: Bitcoin’s decentralized nature allows small businesses to open up their products and services to those that were previously unable to attain them. For example, international buyers can now buy and sell your products or services quickly and easily using bitcoin.
● Cater to consumer preferences: Bitcoin is the future. The companies that don’t hop on the bitcoin train now will be left behind in the future. It’s only a matter of time before bitcoin is used for everyday purchases.
How Can My Business Start Accepting Bitcoin?
If you sell items in a brick and mortar shop, customers can pay using hardware terminals, touch screen apps or simple wallet addresses using a QR code.
If you’re an e-commerce business, you should contact a competent programmer who knows how to set up a bitcoin payment system on your website.
Another Alternative to Accepting Bitcoin
If you don’t feel comfortable accepting bitcoin yet but still want to be involved in the cryptocurrency space in some way or another, putting a Bitcoin ATM into your business is a great alternative. Bitcoin ATMs provide businesses with the opportunity to cash in on the bitcoin craze without having to worry about actually accepting bitcoin as a form of payment for their products and services.
Companies like Coin Cloud will pay small businesses to lease some space in their store to set up the machine. Some of the benefits of hosting a Coin Cloud ATM include: business owners are able to offer customers options outside of just cash ATMs, drive more traffic to their store, align their business with the future and increase their revenue.
What Is Coin Cloud?
Coin Cloud is a Bitcoin ATM company headquartered in Las Vegas, Nevada. With over 627 locations nationwide, Coin Cloud boasts one of the largest and fastest-growing networks of two-way Bitcoin ATMs in the world. Our network has helped more than 144,000 customers buy and sell cryptocurrency since opening our doors in 2014. To find your nearest Bitcoin ATM, please visit CoinCloudATM.com.