Should your company accept cryptocurrency payments?
Although the use of cryptocurrency as a means of a transaction is still much in its early stage, many businesses all over the world are taking the step to adopt this digital currency.
Organizations such as Microsoft, Virgin Galactic, Expedia, Tesla, WordPress, Lionsgate Films, Stripe, and PayPal are some of the organizations that have embraced crypto as a means of financial transaction. According to BitPay, a payment service provider with Bitcoin, about 100,000 vendors have been engaging its service since 2015.
In case you have been wondering if it is beneficial to accept cryptocurrency as part of your business transnational currencies, you are not alone. Many organizations have had to make this decision and they are better off for it. However, making the decision to accept crypto is like making the decision to accept other foreign currencies. It is not like adding Square, ApplePay, or PayPal to your payment option. Although it has a couple of drawbacks, the benefits far outweigh the shortcomings.
So to answer the question, yes you should be accepting it in your company!
There are amazing benefits that businesses enjoy when they accept Bitcoin and other cryptocurrency payments. Some of these benefits are highlighted below.
• Operation in the Global Marketplace
With crypto, you can transact business with anyone from any part of the world. Currency barrier is automatically eliminated with the use of digital currency.
• Cost Effective Transaction
Adopting Bitcoin or any other digital currency is a nice way to say goodbye to transaction fees from banks. The blockchain technology used for cryptocurrency transaction removes the activities of the middleman (banks) which ultimately increase your business profit.
• Real-Time Exchange
With crypto, you don’t have to wait for your transactions to be processed. Digital currency transactions are real time and can be concluded within a couple of minutes.
Risks involved in using Cryptocurrency for Business Transaction
As with the benefits, there are also downsides to using crypto to conduct a business transaction. Some of the risks you have to be conscious of when considering using crypto include the following.
• Cryptocurrency is very volatile, so hedge your bets
Crypto is quite unpredictable. A business can have it all today and lose it all tomorrow. It is a big risk that you must be ready to handle in case it happens.
• Safekeeping of Crypto
Although the blockchain system is very secure but your keys might be compromised. If you don’t know how to keep your keys safe, your business will be at a serious risk.
• No clear Tax and Regulatory Scheme
There is no clarity in the tax and regulatory schemes when you use crypto for your business transactions. They are quite confusing and majorly depend on the location of your business.
Accepting Bitcoin or any other cryptocurrency can be a huge benefit to your business. However, before you decide to accept it for your business, it is essential that you evaluate the risks involved. Ask other businesses about their crypto experiences and proceed with caution.
Gilbert A Darrell is the Founder of Horizon. He has 18 years experience in information technology and telecom solutions, a veteran in Fire and EMS Services, a crypto enthusiast and a member of the Bermuda Government’s Cryptocurrency Task Force.
Horizon Communications is an upcoming fixed wireless internet and cellular service provider looking to provide services in Bermuda, the Caribbean, and Central America before expanding internationally. While utilizing 4th generation and soon 5th generation wireless technology,it will also heavily incorporate blockchain and cryptocurrency technology.