Whether you have a small or big business, you should accept payments with Bitcoin. Why? Well, you might be surprised how many advantages this payment option has over the traditional one. Anyway, like in everything, it is very important two know both – advantages and disadvantages of this type of payment. Continue reading this article, and you will find out the pros and cons of accepting bitcoin for payments.
Let‘s start with some advantages. Firstly, it has very low fees. Other payment methods have huge ones. Some can even be over 4%. Many payment processors charge setup free, as well as a flat one per transaction. You can find Bitcoin exchanges with transaction fees of less than 1%. There is no fee at all if payment is made peer-to-peer.
Also, due to this nature of the transaction, no third party can return the payment to the customer and that is solely the merchant‘s decision. So, for your business, it may sound like a very great advantage. Another important thing is that younger generations are more and more into Bitcoin.
So, if your customers are young people, extending payment options could benefit your business. Also, let‘s not forget the fact that Bitcoin has a limit of 21 million coins, indicating that it has a limited capacity. Because of this limitation, the value of bitcoin may become a hedge against monetary inflation. You might even hold Bitcoin indefinitely, and if the value rises above the amount of the payment received, the extra value may be saved until the Bitcoin is sold.
Although there are pretty great advantages, this payment option also has some disadvantages. Some people actually have security concerns. Crypto exchanges have been hacked and lost millions of dollars. While bitcoin is more secure than some payment methods, people say the most secure storage is offline in what is known as a paper wallet.
Another thing is also a very important one. If your wallet is stolen, any Bitcoin stored in it is lost forever. There is no centralized database containing cryptographic access keys. Because the wallet is the only one who has it, it must be kept safe. That is a very big responsibility, so you may want to be careful. Also, there is no regulation of crypto. If the price of Bitcoin falls before your business exchanges it for fiat currency, you may lose money on the transaction.
So, as you can see, accepting Bitcoin for payments has both – advantages and disadvantages. It has very low fees, and you have complete control over all payment returns. It might be a great choice if you have younger customers, and it has a limited capacity. Anyway, some people have security concerns with it. Also, if your wallet is stolen, all Bitcoins in it are lost forever. And lastly, if the price of it falls before you exchange it, you might lose money on the transaction. There are always some risks but do not forget many pros of it. Anyway, in the end, it is all up to you.