It doesn’t seem that long ago when only those on the edge of cyber society were using a shadowy digital currency to exchange for goods. Most people knew very little about these cryptocurrencies – and were quite happy to regard them as a passing fad that was only for niche markets.
But then everyone and their mother started investing in Bitcoin. The value went through the roof, there was talk of digital ATMs being planned, you could use a Bitcoin sportsbook to place bets, and entire countries using digital currencies to bolster their own fiat currencies.
But should you start accepting Bitcoin – or any other cryptocurrency – as payment for goods at your small business?
What is a Cryptocurrency?
Just so there is no misunderstanding about what we are talking about in this article, we will first go through the basics of what cryptocurrency actually is. It is essentially a digital medium of transaction that works in a decentralized way and relies on peer-to-peer blockchain technology.
There are no central banks or governments involved with crypto transactions. That can make the market quite volatile. But is also means that you do not have to deal with third-party charges and the privacy that blockchain technology affords is very attractive to some.
How to Accept Crypto Payment
As a small business owner you will be used to receiving money for your services or goods. Traditionally that was money in your hand. But as technology has evolved you will have learnt about a number of different ways – many online or digital – to accept payments.
You will need to set up crypto wallets and gateways for storing the digital currency, or for then transferring it into a fiat currency. All of this is very straightforward but you should do your research so that you fully understand the processes. Decentralization offers many freedoms but it doesn’t have all the same back-up processes as traditional currencies.
Reasons to Accept Crypto
As Bitcoin and other cryptocurrencies become even more mainstream, there will be many more businesses looking to exploit these new markets. One of the more basic positives is that it opens up more payment options for your customers and will also attract customers who already deal with digital currencies.
The transactions are also quicker as there are no third parties to worry about. That also means that you won’t be paying any fees on the transactions either. There are no charges and nothing can be reversed, so your money is safe. If you hold on to your cryptocurrency you could also enjoy a rise in value as well.
Things to Consider
As with any new(ish) way of doing business, you should also be aware of how it might not work out so great for you. If you are completely new to this technology you may find it difficult to understand. You also need to make sure you are up to date with further advances.
Limited regulation could be a problem – and the value of digital currency can be very volatile. That could be a problem if your business is one that has to adhere to strict rules. That may not be compatible with the way that crypto works. The rise and fall in value will also turn off many business owners who are loathed to introduce even more risk into their workplace.
The Future – Will You Be Missing Out?
Although there is no doubt that Bitcoin and other cryptocurrencies are becoming more popular, they have by no means taken over financial transactions. It may depend on the nature of your business, but you will not be missing out if you resist the urge to start accepting these payments.
But the other side of the coin is that you will almost definitely attract more customers by accepting digital currency. Make sure you don’t jump into this world without doing your homework first, of course. But you might find that there are some very good reasons to expand the way your business operates with your customers – and potential new customers.