The Benefits of Bitcoin for Business
Since Bitcoin was launched in 2009 over 80,000 businesses have adopted it. The reason that these businesses and many more, like dealing in Bitcoin is because it offers them some incredible benefits. In this article we will examine all of the major benefits that including Bitcoin as part of a payment system works so well.
The Risk of Fraud is much lower
When a business allows their customers to use Bitcoins to make payments it is an advantage to the buyer because they do not have to share any of their confidential financial details such as debit or credit card numbers.
With conventional payment methods a business usually stores the customer’s financial data for future transactions. This is fine if their systems are secure and they do not suffer from any data breaches where cybercriminals can steal their information.
Trading in Bitcoins is really a form of digital cash and hackers cannot intercept a Bitcoin transaction. Also, this protects your identity and in the event of a data breach, your financial details are not at risk.
There is no Inflation or Deflation with Bitcoin
With traditional currency the government of a country can manipulate the money supply by increasing or decreasing it. There are no governments involved with Bitcoin and therefore it doesn’t suffer from any inflation or deflation.
There are a finite number of Bitcoin tokens so creating more of them is not possible. When there is no possibility of inflation an investor can choose Bitcoin as a more stable investment than fiat currency.
The Transaction Fees are lower
The transaction fees associated with credit card payments and wire transfers are pretty high from banks and other financial institutions. In comparison, Bitcoin transaction fees are very low.
Most businesses accept credit cards and end up passing on the cost of the transactions to their customers. With the low fees associated with Bitcoin payments they can reduce the sale prices of their products and services.
Payments can be Faster
Although credit card payments are usually fairly fast, there can be problems where a business will not receive their money for a number of days especially if customers initiate chargebacks.
Once a Bitcoin transaction goes through then it is irreversible. It normally takes less time to receive a Bitcoin payment than it does a credit card payment. It is common to receive a Bitcoin payment in around 2 business days.
Bitcoins are Safer
There are no third parties involved in Bitcoin. No government can seize your Bitcoins or freeze your account. It is very difficult to steal Bitcoins as well if you secure them in the right way.
Faster and less expensive International Payments
These days a lot of businesses look to outsourcing specific tasks for their business to freelancers who are located in different countries. This is fine but usually there are high transaction fees associated with making international payments.
Also, the freelancers have to wait several days to receive their money. International bank transfers are notoriously slow. You can make a payment in Bitcoins anywhere in the world for a very small transaction charge. The recipient also receives Bitcoins a lot faster than an international bank transfer.