For a business to remain relevant, it must keep up with the latest technology and tools. As we enter the so-called era of 'fintech' (financial technology), the finances of your businesses must be reviewed as well. A hot topic in finance is Bitcoin, the digital currency that was invented by an anonymous person(s) called Satoshi Nakamoto. It has its ups and downs but one thing that is clear is that Bitcoin's community and users are growing worldwide. Is there anything about Bitcoin that businesses can make use of? The answer here is a solid yes in so many ways.
1. Start accepting bitcoin as another payment method.
Many businesses use PayPal and other payment methods. They are good, but one cannot deny that chargeback claims can be a pain to deal with, as well potentially causing losses or worse, bad reviews. Bitcoin transactions are final, so there is no way for scammers to claim chargebacks. Also, it makes a nice PR and can generate interest and business from the existing bitcoin community. Free visibility is good.
2. Bring it on business trips
A convenient method to bring and access money wherever you go on your business trip. There are plenty of bitcoin wallets that are secure and come with apps. Getting a bitcoin debit card is recommended here as a nice and convenient way to spend bitcoins as you travel, but otherwise it's an option to store value as you move about as well. For business people who go on multi-country visits, bitcoin service providers can help you bypass currency exchange as well. Just convert bitcoin into local currency as you travel around.
3. Start thinking about blockchains
Holding bitcoin is a practical, hands-on way to learn about blockchain, or the public ledger where all transactions are recorded and publicly viewable online. Many big companies have expressed interest in blockchain technology. Cause it has implications for cutting costs. Blockchain technology is still very much at the infancy stage and many startups are trying to establish themselves. It's good to be in the loop; after all, luck is preparation meets opportunity.
4. Take advantage of bitcoin's fast payment to pay to or buy from overseas vendors
For businesses with overseas vendors, bitcoin transactions are worth considering. Wire transfers, when replaced with bitcoin transactions can be highly addictive because of how improved they are over the current international funds transfer system. In general, bitcoin transactions have lower fees, is faster and works during after bank hours, weekends and public holidays.
5. Make accounting more transparent.
Back to the essence of the blockchain - the recorded data that cannot be tampered with. Once the transaction was sent, it cannot be amended, edited or deleted. Transparency is good on two fronts. First the customer front. Fraudsters can't forge a transaction. Secondly on vendors. Time, amount and other details of the transaction are recorded permanently, stored on the internet. At a time where leaked documents can break a business beyond repair, hopping on the transparency train isn't a bad business strategy.
6. Most-regulated cryptocurrency
Why not use some other cryptocurrencies, you ask? Of course you can. There are a lot out there. Some of the other cryptocurrencies come with their own advantages as well. But entering the world of cryptocurrency through Bitcoin first is recommended, for two reasons. One, it is the most regulated so far. It still lacks regulation, but advances have been made. Second, many other cryptocurrencies are marketed, directly or indirectly, as 'a better version of Bitcoin'. Some are more anonymous, some are faster, some has more applications, the list goes on. So it makes sense to spend time and understand Bitcoin first for a better understanding of how the other coins differ from it.
I would love to hear what you think about this, if you have any questions or queries just drop me a line. Feel free to get in touch and remember to keep your businesses up to date and keep up with the times.