Bitcoin is the new digital money that’s rapidly gaining traction in the fin-tech world. It’s a decentralized electronic cash system that relies on blockchain technology. This innovation involves blocks of peer-to-peer transactions that are stacked on top of each other in a growing list of public records. Each component includes the previous block’s cryptographic hash, timestamp, and the current transaction data.
More and more people see the benefits of this medium of exchange. Aside from mining and trading through platforms, like bitcoin-profit.io, another straightforward way to earn Bitcoin (BTC) is through accepting it as payment. This method is ideal for merchants, especially when you have a global consumer base.
Here are the reasons that you should start accepting Bitcoin as payment:
- International Reach
Since no central agency controls Bitcoin, it serves the international market well. You no longer have to worry about hefty cross-border fees and other transaction costs. Reaching consumers from all over the globe can significantly increase your profits and open up new opportunities.
- Minimal Transaction Fees
Another primary advantage of Bitcoin above traditional payment methods, such as credit and debit cards, is that it has lower transaction fees. However, there are still additional costs to have your transaction verified by a miner and recorded in the BTC network.
The cryptocurrency wallet you use should allow you to determine how much you’re willing to pay a miner to process your transaction. Some tools have a feature that automatically provides you with a dynamically-calculated fee to make it more likely that miners prioritize your request even when the network is busy.
Some things you should know about Bitcoin transaction fees:
- Smaller Transaction Amounts Pay Fees – Transactions with amounts lower than 0.01 BTC will require a miner’s fee to prevent users from spamming the network with microtransactions.
- Older Coins Have Lower Miner Fees – Coins that have been in circulation for quite some time but lack movement is given priority when they’re processed.
- Fewer Inputs Lead to Reduced Fees – Each transaction is comprised of inputs, which helps decide how much resources will be used for the verification process. You’re better off sending one Bitcoin made up of one input rather than splitting up the same amount into four inputs of 0.25 BTC each.
- Greater Security
A lot of people have the misconception that illegal businesses abuse Bitcoin because of the anonymity it provides. In a way, the transactions are not easily identifiable because the blocks only contain the sender and recipient’s unique digital wallet and the amount transferred between the two parties.
However, there’s transparency because the blockchain is a public ledger. Everyone on the network can view each transaction and has a copy of all records. The parties can still be traceable when push comes to shove.
You may also fear that your digital assets may be at risk of being hacked or subjected to cybertheft. But, even your fiat or real-world money can be stolen by those with evil intent since banks and other financial institutions also save their clients’ information online.
These are a few additional Bitcoin security tips that you can do to protect your electronic cash:
- Create Multiple Wallets – As much as possible, don’t put all your digital funds into one wallet. This increases the risk of losing all your Bitcoin when hackers get a hold of your data.
Moreover, while you’ll need a web wallet on a reliable exchange for receiving payments from customers, it’s advisable to transfer the amount into an offline wallet for better security.
- Maintain Offline Wallets – Storing BTC offline can minimize the chances of hackers gaining access to your digital funds. Keep most of your Bitcoin in an encrypted wallet on a computer that’s controlled by you alone.
- Keep Your Private Keys Offline – It’s also recommended that you have an offline copy of your private keys. This way, you won’t have to lose sleep over your computer or other hardware crashing.
- Have Offline Backups – In the same way, you ought to regularly backup your wallet offline. Keep it updated with the latest transactions as much as you can.
- Invest in Security Hardware – You can find a variety of hardware in the market today that are developed specifically to store your Bitcoin securely.
- Limit Access to Bitcoin Storage – For businesses where more than one person can access the funds, it’s crucial that you limit the access to your Bitcoin wallet to lessen the risk of theft.
- Quick Funds Transfer
Bitcoin transactions don’t take long. Typically, you’ll receive your customer’s payment instantaneously. However, factors such as the determined miner’s fee, and the age of the coins can affect transfer time.
Nonetheless, for international transactions, the cryptocurrency is moved relatively quicker than traditional methods where the money has to jump several hoops to arrive in your bank account.
- Brand Reputation
When you become a business that accepts Bitcoin as payment, you position your brand as a technologically-savvy organization. BTC has been around for quite some time now, and it has performed well enough for more and more people to see it as a viable medium of exchange even during its most volatile years.
Large corporations have begun noticing this cryptocurrency and have accepted it as payment in exchange for their goods and services. You should join the growing number of businesses that have provided this payment option to customers.
- New Customers
The Bitcoin community is full of passionate people who see and believe in the potential of this cryptocurrency as a universal medium of exchange. When you make the leap and accept BTC as payment, you’ll be opening your brand to new opportunities and customers.
These users are just waiting for more companies to take advantage of this electronic cash system, and they’ll definitely be loyal clients when you cater to their preferences.
- No Inflation Risk
Future-proof your business by accumulating Bitcoin, which has zero inflation risk. This is because the cryptocurrency was developed with a limit of 21 million BTC, which is expected to be mined approximately by the year 2140. There’s no possibility of excess currency, which eliminates inflation unless they make significant modifications on the system.
One of the ways that your business can grow is to accept Bitcoin as payment. Its decentralized characteristic makes it ideal for international transactions. Moreover, there are minimal transaction fees and quicker transfers. There’s also greater security for your funds with no inflation risk. Plus, you boost your brand reputation and open yourself to new customers.