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10 Reasons Why Your Business Should Accept Bitcoins

You’ve established your own business and currently use widely accepted payment methods such as credit cards and PayPal. However, you might be considering adding Bitcoin or other cryptocurrencies to your payment options to increase your popularity, support the underlying ideology, or enhance crypto adoption rates. While accepting Bitcoin can be challenging due to price volatility, here are ten compelling reasons why your business should consider it. Note that these reasons may not be suitable for everyone, and some risks are associated with using Bitcoin.

  1. Lower Costs
    Credit card fees typically range from 2-3%. Bitcoin transaction fees are not dependent on the transaction size but rather on how quickly you want your transaction processed. Currently, the median transaction fee is around $1. Therefore, the larger the transaction, the cheaper it becomes. However, Bitcoin network fees fluctuate with congestion. At the end of 2017, the median transaction fees exceeded $30. If Bitcoin network fees are too high for you, or if you want to conduct smaller transactions, consider setting up a Lightning Network wallet, which allows you to send and receive Bitcoin transactions up to 0.168 BTC.
  2. Mitigate Fiat Exchange Rate Risk
    Bitcoin is indeed volatile. However, most merchants who accept it set prices in their local currency and also receive payments in that currency. Bitcoin itself only facilitates the transaction. A Bitcoin payment processor with existing point-of-sale integration can help. These companies can even deposit the money into your bank account in the currency of your choice once the payment is made, reducing the Bitcoin exchange rate risk, though they charge transaction fees.
  3. Expand International Sales
    Bitcoin transactions enable you to expand your markets globally. The only limitation is whether you are willing to ship your physical product to a given location. You avoid banks and don’t have to wait approximately three days for the transaction to be finalized. Transfer limits and exorbitant fees are also eliminated.
  4. No Chargebacks
    All merchants know that chargebacks are a real headache. Handling them can consume a lot of time and energy that could otherwise be spent growing your business. Bitcoin transactions are completely irreversible, so you avoid this problem entirely. You can fully decide the merit of any customer claims.
  5. Ease of Use
    Starting with Bitcoin is easy and becomes simpler over time. You don’t need to fully understand the underlying technology to accept it – no one asks you to know how fiat currencies work. Basic knowledge is sufficient, and it’s easy to find these days. The only area requiring special attention is securing your Bitcoin wallet and crypto assets.
  6. Publicity
    Bitcoin adoption is still in its early stages. If you are the first business in your industry to accept Bitcoin, you could gain significant attention in cryptocurrency news portals. You can submit your website to communities such as:
  • Spendbitcoins.com
  • Coinmap.org
  • Weusecoins.com This can attract more customers, as many Bitcoin enthusiasts are eager to use it.
  1. Forward-Thinking Brand Identity
    If your brand is positioned as innovative or a thought leader and early adopter, accepting Bitcoin as a payment method sends a clear statement to your audience. Even if it’s just an additional buzzword for your portfolio, it won’t hurt.
  2. Speed
    Traditional transactions can take a long time, especially for international bank transfers. You might wait up to a week for funds to be transferred successfully between countries. It’s even worse for weekend or holiday transactions. Delays can be frustrating. Although you might hear that Bitcoin transaction times are slow, this is relative to the crypto sector. Compared to banks, Bitcoin is incredibly fast, and your cross-border transaction can be completed in minutes. You can further accelerate the process by using the Lightning Network.
  3. No Third Party
    Most payment options involve a third party. When you have money in your bank account, the bank has the final say, even though the money is yours. They can freeze your accounts if deemed necessary, leaving you without access to your funds. As a business, this can lead to significant losses, delayed orders, or other repercussions. Bitcoin is decentralized, meaning only the buyer and seller are involved.
  4. New Markets
    Digital currencies enable businesses to access new niche markets that were previously inaccessible. In some regions of Africa and Asia, many people lack access to good banking services, preventing them from transacting with people in other geographic areas. The only obstacle is whether you are willing to ship (if selling a physical product) to a particular geographic location.

Conclusion

Accepting Bitcoin can offer your business numerous benefits, from reduced transaction costs to expanding your customer base globally. While there are risks involved, such as volatility, integrating Bitcoin payments can position your business as forward-thinking and innovative. Ensure you take necessary precautions and leverage payment processors to mitigate potential downsides.

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