Whether Entrepreneurs should consider Bitcoin for their Small Business?
The cryptocurrency market has been volatile over the past years. Still, recently it has seen a steadiness and also the rising interest of blue-chip companies appreciating digital technology as their small business. These digital assets are being trusted worldwide as a hedge against inflation and as a better payment mode. You can also learn from cryptocurrencies software and learn about about differences.
Let’s understand the various reasons that will lead an entrepreneur to consider Bitcoin in their business portfolio.
Reasons for Entrepreneurs to consider Bitcoin.
The Google trends show that searches related to Bitcoin have increased due to its increasing valuations, and as eminent companies across the globe appreciate it.
Acknowledgment of the significance of Bitcoin could lead to an appreciable effect by the small businesses. If the small business evolves with the developing and popular technologies and innovates their businesses accordingly, it will be of greater value.
What is Bitcoin?
In order to accept Bitcoin as your payment method, it is significant that you understand- what is Bitcoin? Bitcoin was invented in 2009. It’s a cryptocurrency that could be used for transacting as digital money.
It is based upon a technology known as Blockchain that keeps its network sheltered from any fraudulent activity. Any centralized authority does not control it. Any specific bank or company does not run it. All the transactions are carried out in a decentralized manner. Therefore, there are numerous reasons for entrepreneurs to consider Bitcoin.
Bitcoin being a 100% digital currency, is diverse from the fiat currencies as it cannot be held physically and is often termed as “digital gold.”
Functioning of Bitcoin
Bitcoin records all the transactions in a distributed public ledger, which verifies and confirms all the financial transactions that take place in Bitcoin Network. Miners are distributed around the world, which is basically computers with high performance. The data is processed on the network by these miners who run the Bitcoin nodes for the processing of data.
The miners confirm the transactions that get broadcasted on the network. Once the transaction gets confirmed, it then appears in the next block in the chain. The miners continuously work on verifying the transactions and recording them on the Blockchain lastingly.
Miners receive rewards for verifying and confirming the transaction. This helps in encouraging them and promoting productivity in the network. This process helps in increasing the security of the Bitcoin Network.
Benefits of using Bitcoin in Small Businesses
Bitcoin is considered an alternative to fiat currencies for making payments. Fiat currencies ret affected by inflation in the market and can be manipulated. As there is no centralized authority controlling Bitcoin, it appears as a challenge to the banking systems.
Various reasons why small businesses should consider Bitcoin are as follows:
Zero Transaction Charges
Since there is no intermediary involved in transacting in bitcoins, this eliminates banks’ involvement who charge transaction fees for their services. While doing high volume transactions, even a small percentage of fees will add up. The processing time taken by the banks also gets eliminated while transacting through Bitcoins.
Overall using Bitcoin as a payment mode will increase your revenue by saving costs.
Faster transfer pace
Since Bitcoin is a decentralized system, there are no intermediaries involved. Banks waste a lot of time in the completion of a transaction as it will involve both the sending and receiving banks. In the blockchain network, the transactions get verified by a pool of miners that make these payments quick, reliable, and transparent to the users.
The decline in Fiat Currencies
As per the statistics, the purchasing power of fiat currencies like the dollar has been depreciating each year since its commencement. At the same time, an increase of more than 200% has been observed in the Bitcoin value between March to October. Therefore, in order to hedge against the inflating fiat currencies, Bitcoin is considered as a safer digital asset.
With the declining values of the fiat currencies throughout the passage of each year, the businesses which do not understand the value of adopting Bitcoin are losing their wealth. The depreciating fiat currencies are required to be hedged by accepting Bitcoin.