Should you as a business and a merchant start accepting Bitcoin?

Should business or merchant accept Bitcoin

If you are researching reasons to start accepting Bitcoin at your business then you probably heard of it and have a basic idea of what Bitcoin is.  If not, here’s a Wikipedia definition 

Here are 13 reasons for merchants to accept Bitcoin:

  1. Bitcoin is legal
  2. Bitcoin price is skyrocketing.  If you sold a purse for 1 Bitcoin last month – today it’s worth 1.5
  3. Processing fees are low. Small merchants that don’t want to pay Credit Card fees, can save
  4. The whole Bitcoin network is secure.  Blockchain is major technological innovation
  5. A lot of buzz around Bitcoin, you can get free marketing just from announcing you accept cryptocurrency
  6. It’s possible for Bitcoin to go away but cryptocurrency is here to stay.  You ignored it for years but it’s reaching the mainstream, don’t get left behind
  7. Large retailers are embracing Bitcoin.  Amazon, Overstock
  8. Some High Risk merchants might not be able to get Credit Card processing due to nature of the business – Bitcoin may be your only option
  9. There are whole business types where customers prefer to pay with Bitcoin.  Various IT industries, luxury items, adult
  10. Government cannot freeze or seize your Bitcoin funds
  11. Governments are moving away from Cash and it will eventually go away
  12. Customers are asking you to accept Bitcoin
  13. Competitors are offering it
  14. Lincoln, Caesar, Napoleon, Cleopatra and many others didn’t use Bitcoin and now they are dead.  Not using Bitcoin is killing people (joking, couldn’t resist 🙂

 

Here are 5 reason not to accept Bitcoin

  • Even though Bitcoin network is secure, your e- wallet is not.  Watch it like a hawk
  • Customers are anonymous, because of this Bitcoin has become part of criminal landscape
  • Bitcoin could be a bubble, if it bursts and you didn’t exchange it to USD – you’d lose a lot of value
  • IRS considers it an asset and requires you to report gains/losses
  • Most exchanges have limits on withdrawals/deposits
    • declines can go up
    • foreign Corp set up – will cost $
    • deal with international laws
    • beware of third world country banks

SO WHAT SHOULD YOU DO?

Conventional processing of credit and debit cards is the backbone of U.S. retail and is not going away anytime soon.  However with time there is a possibility of seeing a larger portion of the economy shift to virtual currency.   To be clear, most payments are already electronic but the switch from Credit Cards to Bitcoin will involve huge costs and will not happen overnight

Your decision should be mostly based on:

  • Your customers (are they asking for it)?
  • Your industry (are competitors doing it)?
  • Your understanding of Bitcoin (start small until you really get it)
  • Your technical capabilities (do your research first, there are lot of hackers out there)

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Next Steps:

2. Compare credit card rates on AllRates.org to see which Payment Provider gives you the best deal.
3. Get a free consultation with AllRates analyst to discuss your particular needs for payment processing HERE