Bitcoin has swept the alternative currency world in record numbers. As of June 2021, the Bitcoin market cap had reached as much as $600 billion US dollars.
In spite of these astounding numbers, the general public is still slow-moving in recognizing and adopting its existence. According to Statista, as much as 25% of Americans were still not familiar with Bitcoin back in 2019. With over 18 million Bitcoins in circulation, there are still only 6,674 Bitcoin ATMs worldwide. Most are to be found in the United States.
In spite of the massive number in circulation, it still has little “physical presence” which could explain why many have yet to hear about Bitcoin.
What Is Bitcoin?
Bitcoin is a “decentralized” digital currency created by someone or a group by the name of Satoshi Nakamoto in 2009. It’s essentially a new type of money that is entirely digital. It can be utilized by anyone, regardless of where they are in the world. It is a universal currency.
Bitcoin is not controlled by any one person, organization, or government. It is completely run by a community of users. One of its greatest selling points is that it is not controlled or regulated by a bank, this essentially makes it a “decentralized” currency.
Every Bitcoin transaction that has ever occurred exists on a public ledger that is accessible to everybody. This makes transactions difficult to reverse and challenging to counterfeit.
However, because they are not backed by the government, there really is nothing to ensure their value, besides the proof that is incorporated in the system.
What Are The Benefits Of Paying With Bitcoin?
If you are looking to accept Bitcoin as payment for your business, consider the many benefits this could bring:
- Reduced Transaction Fees
Compared to debit and credit card transaction fees, the fees for Bitcoin are very low. This is due to the fact that there are no third-party or intermediaries in carrying out the Bitcoin transaction. The transfer of digital currency is quick so there are no waiting periods or requirements for authorization.
- Transactions Are Irreversible
Bitcoin transactions cannot be reversed, but only refunded by the person receiving the funds. This has been created to resolve the “double-spending problem”. Double-spending happens when money is spent more than once. Bitcoin users guard themselves against this by waiting to receive confirmations when they receive payments on the blockchain.
- There Are No Taxes On Purchases
There are no third parties to identify whether or not a Bitcoin transaction has taken place. They will also be unable to identify who made the purchase as the buyer is anonymous. When people use Bitcoin to purchase products and services they do not need to worry about paying taxes.
- Easy Transactions
Potential users of Bitcoin simply need to download a Bitcoin wallet program and create a Bitcoin address to perform Bitcoin transactions online. Anyone regardless of age or country can perform a Bitcoin transaction. No proof of address, passport, or ID card will be required in order to send or receive Bitcoins.
- The User Remains Anonymous
Since all purchases are made via a decentralized platform, these transactions are not associated with the user’s personal identity. Like cash-only purchases, no one can trace the purchase back to the user.
The Bottom Line
Bitcoin is true, “a new kind of money” that has been accepted by renowned companies such as Microsoft, PayPal, and Tesla. As adoption continues to grow, businesses looking to expand their customer base should take advantage of this lucrative opportunity by accepting this digital currency.