The Advantages Of Paying with Bitcoin

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 fees, Bitcoin fees can be lower in some cases, since there are fewer intermediaries. Transfers can be relatively quick, though timing varies by network conditions.

• 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.

• Easy Transactions

Getting started with Bitcoin can be as simple as downloading a wallet and creating a Bitcoin address. Note that businesses accepting Bitcoin, and many wallets and exchanges, are still subject to identity-verification (KYC) and other regulatory requirements

• Added Privacy

Bitcoin can offer more privacy than some traditional payment methods, but it is not anonymous — every transaction is recorded on a public ledger and can be traced. Merchants and users remain subject to applicable KYC/AML and tax obligations.

The Bottom Line

Bitcoin is often described as “a new kind of money,” and a number of companies have accepted it over the years. As adoption grows, businesses looking to expand their customer base may want to consider accepting cryptocurrency.

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