(FILES) This June 17, 2014 file photo taken in Washington, DC shows bitcoin medals. Bitcoin surged above $11,000 for the first time on November 29, 2017 as it extends a stratospheric rise that has delighted investors but sparked fears of a bubble.The virtual currency achieved its first landmark of a historic day early in the Asian trading session, breaching $10,000 for the first time, according to Bloomberg News figures. / AFP PHOTO / KAREN BLEIER
Are you wondering why most people prefer Bitcoin payments? Let’s find out the pros of accepting this digital asset payment.
Bitcoin has many different uses, including more straightforward ways such as purchasing pizza or sending money abroad, which is why some people want Bitcoin payments. Bitcoin is gaining worldwide acceptance, so more people wish to get Bitcoin payments. Here is why.
Transactions are Irreversible
Once a Bitcoin payment goes through, it is irreversible since it is permanent. Only the party receiving the funds can reverse. This aspect does not sit well with small businesses. However, they should be ready for the [possibility of clients asking for refunds, so they have to record how much money each customer has paid.
On the other hand, the inability to reverse Bitcoin transactions helps business owners manage their cash flow better. Also, there are no chargebacks to worry about since the business owner pays them manually when someone wants a refund. In addition, your business team can account for every transaction better.
However, reversing transactions can be a tedious task, especially for your employees. If there are tons of reversible transactions, your team will have to divert their attention to that rather than conducting the other necessary work.
Bitcoin transactions are more secure than credit or debit card transactions. That is because these digital asset transactions do not require third-party verification. If a customer completes a transaction, their data is not stored in a centralized hub but rather in their crypto wallets. It is in these data hubs where data breaches commonly occur.
Also, the blockchain general ledger verifies and records every transaction making it very difficult and impossible to steal someone’s identity. But you require a digital wallet and an account with a reputable crypto exchange like BitQT with Bitcoin transactions, ensure their security, and remain anonymous. Perhaps, you can register with a crypto exchange to start trading Bitcoin.
Fewer Transaction Fees
Merchants or customers are responsible for paying transaction fees and setting up costs for most payment processors. However, this virtual currency charges much lower costs and times none. Some Bitcoin exchanges will offer charges under 1%. If your business involves global transactions, Bitcoin can help avoid international currency payment fees. And this is because this digital money doesn’t tie to a country of origin or bank like fiat currency. As a result, transactions are fast because you don’t have to wait for payments to clear with a foreign bank, and you can complete them any day of the week.
You Can Invest with Bitcoin
As a business owner that accepts Bitcoin as a means of payment, you can convert it to fiat currency or hold it indefinitely. Bitcoin is a store of value, and one can keep it until its value increases. Even though this could result in capital gain taxes, you won’t pay them until you sell the asset.
A Hedge Against Inflation
Conventional currency can lose value when the government prints more money via the central bank. However, this digital asset is limited. Only 21 million Bitcoins will ever exist. This limitation of Bitcoin protects it from inflation. Fiat currency is subjected to inflation greatly.
Attracts Younger Clients
The majority of older people are opposed to new technologies. They prefer to work the traditional way. However, younger generations prefer new technologies and accept them, and in these cases, they will buy Bitcoin. A business that accepts Bitcoin as a means of payment increases and widens its customer reach. So a company that caters to young adults could benefit by expanding its payment options and incorporating this digital asset.
A wise move is to research this digital asset as a business owner or individual before accepting it as payment. Essentially, know the pros and cons or the risks of taking Bitcoin payments or using it as a currency or an investment.