The Maverick Entrepreneur™ Series
Should Your Company Accept Bitcoin?
By Bob “MAVERICK” Stanford – “The Maverick Entrepreneur™”
First off, the real question is, “Should my company accept Cryptocurrencies?” Bitcoin falls under this category, but there are a few others to consider such as:
- Bitcoin Cash
- And many more…
Most online businesses accept PayPal, Square, Apple Pay and other payment gateways enabling them to accept credit cards safely, for both their customers and their companies.
As of this writing (01/02/2019), Bitcoin is the most common and accepted Cryptocurrency, with Ethereum gaining supporter ground. The primary benefit of accepting payments in Bitcoin is you’re expanding your market since Bitcoin is the only payment method available, or trusted by some potential buyers.
Though we mentioned a few other Cryptocurrencies, we will primarily refer to Bitcoin in this article, since it’s likely the first Cryptocurrency most businesses will accept in the beginning.
The World becomes Your Marketplace
Bitcoin opens up an enormous expanded market for your products and services. Since it decentralizes the world market and brings uniformity to an accepted Bitcoin, a universal and borderless payment gateway.
You can make sales never before possible, or at least were very difficult to make due to inconsistent, and currency fluctuations requiring constant complex processing for exchange rates (Cryptocurrency isn’t bound by any countries’ exchange rate), losing your time, costing you fess, and slowing done the amount of time for you to get your money.
It’s cheaper, faster (almost instant), and easier for both you, and your customers when you use Bitcoin for your transactions. It’s no secret Credit Cards have ridiculous interests, some upward of 40%.
Bitcoin had none. Of course, credit cards offer credit, while Bitcoin is a payment system requiring the buyer to have funds in his “Wallet” or account. Though we’re not comparing apples for apples here, this is why many individuals use interest-free Bitcoin.
Paper Currency (Even in the U.S.) is Fiat Money
When you understand what FIAT money is, it should be much clearer why people worldwide prefer using Bitcoin.
“Wikipedia defines Fiat money as:
- Any money declared by a government to be legal tender.
- State-issued money which is neither convertible by law to any other thing, nor fixed in value in terms of any objective standard.
- Intrinsically valueless money used as money because of government decree
- An intrinsically useless object that serves as a medium of exchange (also known as fiduciary money.”
So, in the final analysis, FIAT money is worthless paper, not back by anything of value like gold, or silver. We can thank Richard Nixon for taking our currency off the Gold Standard in 1971.
Now our paper currency has no value other than the faith it receives from the American people since it is no longer back by gold. And unfortunately, the rest of the world has lost some faith in this currency.
There are a growing number of people losing interest, and faith in FIAT money, and switching over to Bitcoin. There are a huge number of potential international buyers that don’t have access to conventional banks but can make payments over the Internet.
Large payments can take days, or even weeks taking time to clear, making Bitcoin quite attractive for many companies. And high-risk businesses may not have access to traditional payment gateways like PayPal and many debit card accounts used by small companies to accept direct deposits for membership programs.
We live in the Internet Age – Think about It
The younger generation, under the age of about 35, has grown up with computers and experienced online interaction with other individuals, and businesses. Basically, the Net has become as natural as cell phones to them.
The Internet was launched about 1981 but became mainstream about 1993. Cell phones have been around for decades but didn’t really become mainstream until 1995.
I remember my international business clients were shocked to see me carry a cell phone in early 1993.
I would hand it to them for immediate contact to their partners, accountants, and attorneys, giving me a big competitive edge in closing business deals in the hundreds of millions of dollars range.
So people born since the early 1980s are generally more comfortable with electronic online payment gateways, including Bitcoin,
It truly is a new age on commerce, or should I now say ecommerce?
It was the launch of NCSA Mosaic (the first GUI web browser) in 1993 that made the Internet available to the masses of mankind.
Children are more adept, and faster at learning computers, cell phones, electronic games, and social media, than most of us “old fogies over 40 (I’m 72),” so life online is as natural to the Gen Y (Born about 1981) individuals, like school.
What is Your Niche Market?
Some industries and companies are more directed to serving specific markets that are natural niches for accepting Bitcoin, especially businesses focusing their sales on Gen Y buyers.
But other, more broadly focused niches are also great candidates for Bitcoin since their niches cross over multiple generations. Much of the younger online generation prefers both the anonymity and simplicity of “crypto” transactions.
The Marketplace has changed dramatically
Have you ever made a purchase on eBay, Amazon, or another online website? If not you are in the small minority of those that don’t.
It’s been estimated that there are hundreds of thousands of businesses around the world that accept Cryptocurrencies, and that number is growing rapidly.
Many financial experts feel that all businesses not accepting Bitcoin will be at a tremendous disadvantage in the world market if they don’t jump on the bandwagon now and start accepting Cryptocurrencies.
Yes, there are some risks involved in accepting Cryptocurrency?
Our next article will cover some of these risks. You need to know them in order to make an intelligent decision as to accepting Cryptocurrencies or not. You may wish to read a recent article from a guest author in our BLOG at https://stanfordtc.com/7532-2 – It will offer a more comprehensive look into the Cryptocurrency arena.
If you are interested in additional information as outlined in this article, need assistance in applying this information, or just want more resources, contact us for FREE (no obligation) and we will do our best to accommodate you.