The crypto revolution may have started a decade ago but it’s never too late to join in. Every year, more and more businesses are adopting Bitcoin as a payment option and capitalizing on the ever-growing demographic that uses digital currencies daily. That might be because of the ease of using Bitcoin. You can even buy bitcoin with credit card nowadays.
Research from the University of Cambridge indicates that small businesses are actually the biggest and fastest adopters of cryptocurrencies. But even large corporations like WordPress, Microsoft, and Tesla are getting in on the action. But why should your business start accepting crypto?
We’re going to discuss the state of Bitcoin, talk about its recent jumps in price, and see why your business should consider offering it as a payment option.
Table of Contents
The State of Bitcoin in 2020
Originally launched in 2009, it took Bitcoin some 8 years to make a name for itself. In 2017, a massive spike in value transformed hundreds of early adopters into millionaires. Since then, the cryptocurrency hasn’t received as much media attention.
Does that mean that Bitcoin has all steam?
Not at all. The current year wasn’t kind to anyone and at first, Bitcoin was no exception. In March, after many countries went into lockdown, the price of Bitcoin was down around 50% from its last year high. However, the cryptocurrencies managed to bounce back rather quickly.
Just a few months since the price is now up 5% compared to 2019 high and potentially, this could be another record-breaking year for Bitcoin.
Bitcoin Volatility
Speaking of setting new records, most experts feel like there’s a good chance that the price of Bitcoin could reach $20,000 before the year is over. That’s a 300% jump compared to the $5,000 low Bitcoin found itself back in March. If you’re new to this, you’re probably wondering why is Bitcoin so volatile?
There are a couple of reasons for this. However, the biggest reasons are the fact that the Bitcoin price reflects real-world events. When something as big as the recent COVID-19 outbreak happens, it negatively affects the price. Since these events are unpredictable, so is the Bitcoin price.
But the bigger question here is, as a small business owner, should you be worried about volatility? Not really. If you make smart decisions and calculations a drop in price won’t affect you.
For example, if you are worried about a sudden price drop losing your money, you can quickly exchange your Bitcoin as soon as someone makes a payment. User-friendly exchanges like NordikCoin allow you to flip your coins, exchange them for dollars, and have them on your bank account in a few minutes.
5 Reasons Small Businesses Should Accept Bitcoin
Allowing people to stay anonymous, giving more control over finances, and providing an alternative to traditional banking are just some benefits of cryptocurrency for individual users. However, there are more than a few benefits of crypto for businesses as well.
1. Having Lower Transaction Fees
While a 3% fee doesn’t sound like much, with enough transactions, that fee could have a noticeable impact on your cash flow. With Bitcoin, you can avoid this problem completely. In most cases, Bitcoin transaction fees are between 0% and 1%. That’s right, in certain situations, you won’t even have to pay any fees at all. This is because Blockchain, the technology Bitcoin was built on doesn’t require any 3rd-party to check the transactions. The Blockchain governs itself.
2. Less Waiting Time for Both Parties
Even if you don’t have a problem with fees, the time your money requires arriving in your account can certainly be an issue. This is especially a problem when you’re strapped for cash. Again, with Bitcoin, you won’t have to think about this problem. The Blockchain requires just a few minutes to check each transaction. That’s why you can have your money ready in a matter of minutes.
3. Strong Merchant Protection
Cybercriminals have been, and will probably remain, one of the biggest problems modern merchants face. Every year, retailers in the United States lose more than $11 million because of cybercriminals. Other business sectors such as insurance and tech suffer even more. That’s why it’s good to have merchant protection. Since there’s no way for a 3rd-party to reverse a Bitcoin payment, you can rest assured that every transaction made on the Blockchain network is 100% safe.
4. Giving Consumers What They Want
Like we said earlier, individuals can benefit from using crypto greatly. They can keep their privacy, get an additional layer of protection, and enjoy your product or services without exchanging Bitcoin. By giving them an option to pay in Bitcoin, you’re showing your customers that you respect their rights, time, and effort. In turn, this will help you cultivate a loyal consumer base and get people behind you. Over time, you’ll even get customers because of this, since nothing beats good word-of-mouth.
5. Increasing Sales Over Time
Planning on expanding to markets? Bitcoin can help you with that too. The fact of the matter is, millions of people from all over the world use Bitcoin regularly. It has allowed people from small countries to access products and services that weren’t available before. Bitcoin can open your doors to a whole new demographic and show you that there are potential customers in places you never even thought about.
Start Accepting Bitcoin Now
Everything has drawbacks and cryptocurrencies are no exception. However, in this case, the benefits outweigh the drawbacks so much so, that it would be a complete waste not at least trying out accepting Bitcoin payments.
Remember, Bitcoin transactions come little to no transaction fees, merchant protection, and can potentially help you increase your sales. In the end, improving your services and increasing the bottom line are the only two things that matter.
Bitcoin can help you with both of them.
About Carson Derrow
