As an entrepreneur, making sure your business thrives and grows is one of your top priorities. Since numerous hurdles are bound to crop up along the way, that’s not always an easy feat. Simply keeping up with consumers’ needs and expectations can be difficult. Staying a step ahead of the changes in your industry and new technological developments makes the matter all the more complicated.
Fostering the growth of your company is especially trying these days in light of the current COVID-19 situation. Thousands of businesses are being forced to limit their daily operations or even close their doors altogether, and public spending seems to have faltered quite a bit in the face of the pandemic.
Though many businesses feel they’re losing headway at the moment, you can certainly propel your company in the opposite direction. Progress can come from many sources, but you need something that’s sure to set you apart from others in your field. Bitcoin may be the solution to growing your business even in the face of uncertain times.
Taking a Closer Look at Bitcoin
Established back in 2009, bitcoin is the world’s first cryptocurrency. It’s completely digital and has no physical form of money to represent it. Over the years since its launch, it has seen certain ups and downs. Overall, though, bitcoin has experienced fairly consistent growth in terms of acceptance as well as value.
Bitcoin and other cryptocurrencies are based on blockchain technology, meaning they’re made up of bits of digital code. At the same time, the network surrounding bitcoin consists of a computer grid that spans the globe. Unlike other forms of currency, bitcoin and its counterparts are decentralized. As such, they’re not controlled by banks, governments, or any other regulatory entities.
Using Bitcoin to Escalate Your Business
Bitcoin offers a long list of benefits for businesses and consumers alike. Because of this, it could go a long way toward helping your company flourish. By adding this cryptocurrency to your current arsenal, you could set the stage for advancement no matter what the future holds in store.
Cybersecurity is a major concern for individuals and businesses these days. Reports point to more than three million cases of identity theft and fraudulent activity during the last year for which information is available. Analysts expect those numbers to increase during the years to come as more information is stored online and cybercriminals become savvier.
Though hacking isn’t unheard of with cryptocurrency, cyber theft is far less likely than it is with traditional online purchases. Blockchain transactions undergo a complex series of steps, each one connected to the last. Once each block in the chain is established, no one can reverse or break it. It’s there to stay.
At the same time, anonymity reigns supreme in the world of bitcoin. Users create dedicated wallets for carrying out transactions and acquire cryptocurrency via exchanges, lenders, or brokers using those digital accounts. Users generally aren’t required to give out personal information when conducting cryptocurrency transactions, and no one can trace bitcoin wallets back to users’ bank accounts or other private data.
Increased security and the extra boost of anonymity could certainly work in your favor by protecting your company from financial fraud and theft of valuable information. It’ll also help safeguard your customers against cybercrime. This is sure to catch the attention of your customers and prospects.
Expanded Customer Base
It’s no secret that bitcoin and other cryptocurrencies aren’t widely accepted. In fact, only about 36 percent of businesses currently offer customers this payment option. Those that have yet to jump onboard are bound to fall behind as more consumers veer toward cryptocurrency as their payment method of choice.
Bitcoin owners are on a continual mission to find companies that will allow them to make purchases using their crypto wallets. If you become one of the few companies to add bitcoin to your lineup, consumers will take notice. They’ll bring their business to you and overlook your less-advanced competitors. You’ll be on the leading edge of the cryptocurrency revolution along with household names like Microsoft, Expedia, NewEgg, Virgin Galactic, Subway, and Burger King.
Each country has its own form of fiat currency. Exchange rates vary from one country to another and even on a daily basis. In some cases, making sales in other countries entails a great deal of time and hassle. You or your customers may face lofty exchange fees when using traditional funds, and transactions can take days to complete.
That’s not the case with bitcoin. It’s global and universal. People across the country now purchase bitcoin and use it to make purchases. Its value is the same no matter where the transaction may take place.
With cryptocurrency, exchange rates and fees are a thing of the past, so you can easily take your company to an international level. Bitcoin payment processors handle the math on your behalf, and they don’t charge exchange fees. Transactions take minutes or hours to complete rather than days, so you’ll get your money more quickly as well.
Lower Transaction Fees
Credit cards and online payments are rapidly weeding out cash. Less than 25 percent of consumers prefer physical money over the alternatives right now, and that figure is decreasing with each passing year. Failing to offer credit card transactions as a payment option for your customers would be a risky venture, and you’d lose countless sales in the process.
That said, common payment processors typically charge anywhere from 1.5 to 4 percent or more for each transaction. Those fees add up over time, and they certainly eat away at your profit margin. Bitcoin payment processors charge 1 percent or less per transaction. Many don’t impose transaction fees at all.
Your bottom line stands to gain quite a bit when you allow customers to pay with bitcoin. No doubt, you can find good uses for all the extra income, such as developing new products and services to further expand your business.
Increase Your Profits
Bitcoin may not be privately owned or publicly traded, but it presents an interesting and potentially lucrative trading opportunity. Like stocks and commodities, bitcoin’s value rises and falls. In the beginning, one bitcoin was worth about $0.07. At its highest point, this figure skyrocketed to almost $20,000. Right now, a single bitcoin is worth about $8,700.
If you play your cards right, accepting bitcoin could pay off significantly for your business. Save all or part of the bitcoin you receive from purchases and keep an eye on its value. When it hits a high point, exchange it for traditional currency. You could easily double or triple your money if not more. Then, reinvest the profit into your business.
On top of that, you could watch for low points in bitcoin value. When its prices plunge, use a conventional currency to purchase bitcoin. From there, use your bitcoin to make purchases from businesses in your supply chain. You’d essentially be getting more products and services for less money, further bolstering your company and income.
Protection against Uncertainty
You don’t have to be a conspiracy theorist or doomsday prepper to know the future is uncertain. The current pandemic and all its accompanying chaos and turmoil are proof of that. Some people believe it’s only the beginning and far worse issues await beyond the horizon.
If economic collapse were to take place, stocks and traditional currencies could lose their value. Since cryptocurrency doesn’t follow the standard rules, though, it may be exempt from such a disaster. Many analysts believe a significant drop in the value of standard currencies could spark an equal but opposite reaction in the price of bitcoin.
Reports show bitcoin’s value plummeted when the stock market bottomed out at the beginning of the COVID-19 crisis, but it came back with a vengeance. In the past, bitcoin has excelled in times of stock market distress. If history is any indication, the cryptocurrency is likely to do the same in the future.
Bringing bitcoin into your list of payment options could give you a hedge against uncertainty. Bitcoin owners could prosper in the face of adversity as well. If they can spend their digital wealth with your company, that’s yet another potential for profit.
All Things Considered
In the grand scheme of things, only a handful of companies currently accept bitcoin as payment for goods and services. By becoming part of the minority, you could propel your business to new heights and gain the upper hand over your competitors. Your customers and prospects would definitely take notice.
Adopting bitcoin brings to the table several ways of growing your business. You’ll attract an entirely new customer base and create the opportunity to take your sales global. Cryptocurrencies come with lower transaction fees than credit card processors and no international exchange fees, so you could save a considerable about of money on these aspects alone.
Exchanging bitcoin for traditional currency offers ample opportunities to make a profit in its own right. Cryptocurrency holds the potential to increase in value when the stock market and other currencies take a turn for the worse. For these reasons and many others, adding bitcoin to your repertoire could certainly pay off for your business.