Is your business looking to cash in on the Bitcoin boom?

If you too are thinking about using Bitcoin as a method of making and receiving payments there are certainly several reasons to recommend it.

Then here’s some sound advice.

Even though it was first introduced nine years ago in 2009, the invention of the mysterious figure of Satoshi Nakamoto, has really only started to hit the headlines in a big way in the past year. That’s because we’ve been seeing its meteoric rise in value that in December reached the major milestone of being worth just short of $20,000 – a 2000 per cent increase from the start of the same year. The media have also been full of stories of early adopters of the cryptocurrency whose investments of a few hundred dollars a few years ago are now worth many millions.

Bitcoin has also spawned many hundreds of other cryptocurrencies and established the blockchain as an innovative technology that is going to have many more applications in the future than simply being a way to securely confirm a transaction.

So it’s hardly surprising that businesses are now also beginning to get on the bandwagon ranging from online traders where you can sell and buy Bitcoin to major companies like Microsoft and Dell who are even starting to accept it as another form of payment.

If you too are thinking about using Bitcoin as a method of making and receiving payments there are certainly several reasons to recommend it.

The first is that it is a fast and secure way to carry out transactions, far faster than waiting the days that it can take to make one through a traditional bank. The blockchain technology that lies behind the transaction also means that you can be sure that it will be confirmed and go through smoothly. Though, at this point, it is worth noting that once it’s made any Bitcoin transaction is irreversible, so not ideal if your business often has to issue refunds or deal with disputed payments.

The other big appeal of cryptocurrency transactions for businesses are the exceptionally low charges compared with banks. Plus, if you start to deal with overseas suppliers who also trade in Bitcoins, then there will be none of the hassle, or possible expense, of arranging currency conversions. There are so many other ways the blockchain can help your business now and definitely in the future, if you are interested how check out More than just cryptocurrency: The advent of blockchain for business.

However, nothing’s ever perfect and Bitcoin’s no exception so there are certain other factors that need to be taken into account. The first is that it will, inevitably, fluctuate in value so if you find yourself needing to convert it back to a fiat currency at the wrong time then you could well lose out. Plus, because it’s unregulated and not backed by any government or financial institution there will always be countries that refuse to recognise it.

There’s also the fact that, as a digital currency whose ownership and payments are anonymous, it is always going to be a target for hackers and other online fraudsters such as the ones who nearly brought it down in the Mt Gox scandal of 2014.

Having said this, if you’re cautious and only use reputable Bitcoin exchanges, as well as storing your own currency in a secure wallet then everything should be fine.

The only other real concern would be if the recent rises in value prove to be a bubble that will one day burst – and no-one can really predict whether this will ever happen.  But even if it does, it looks like the blockchain technology that it has introduced to the world is certainly here to stay.

If you are still interested in the blockchain here’s how businesses can use blockchain to boost revenue.

Brenden Grant

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