5 Practical Ways Bitcoin and Blockchain Can Impact Your Small Business
With all the buzz around blockchain tech and cryptocurrencies, small businesses might feel left out.
Even for those who are not necessarily cutting-edge in terms of tech, these five tips can empower entrepreneurs and small businesses in leveraging bitcoin and blockchain as cryptocurrencies for their financial and other needs.
The survival of the cryptocurrency revolution is completely reliant on its acceptance, and that is where small businesses can excel. Some larger companies, like Amazon and Tesla, are currently accepting cryptocurrency with not too many small businesses jumping on board.
First, let’s talk a moment about why accepting cryptocurrency can be of benefit to you:
Little to no fees — Credit card processors will easily charge you 2-4 percent in fees for using the service. Cryptocurrency transfers are close to free, although services will usually charge a minimal amount (0-1 percent) which means you will save money. Note that you can use services that can confirm blockchain transfers faster, but will have a bigger fee to expedite it.
Faster access to your funds — Banks are not involved with the transactions, and there are no centralized clearing processes. This means you get the payments considerably faster. For example, most bank-based payment processors send payment within 1-2 days. You can get Bitcoin payments within minutes to a few hours, depending on the network’s cryptographic load.
No government ties — Since cryptocurrencies are not tied to any governments or regulatory agencies, there are no borders to consider. You can avoid international exchange rates or transaction fees.
Avoid disputes — Although cryptocurrencies are completely digital, they work like cash rather than credit. All sales are final, and there is no way for a customer to dispute a transaction. If you have had issues with people contesting charges, accepting cryptocurrency can change that for you.
You can actually make a name for yourself by being a pioneer in this regard. It’s as easy as setting up a payment processor that specializes in cryptocurrency.
While many services will offer “wallet” capability, some startups go beyond this. CryptoPay, for instance, offers both a digital wallet for Bitcoins and a physical debit card, which allows users to spend cryptocurrency at any establishment that accepts Visa debit cards. CryptoPay is one of the more established players in this niche and is planning to raise funds through an initial coin offering (ICO) in order to further improve its services.