It is tough for small businesses to grow in a competitive world, and wanting to start a small business puts up multiple questions in your mind. You might be thinking about the initial cost required to plan a business, setting up the value of goods and services that can help you to earn a profit, and many more. While accumulating answers to these questions, you forget the main question: will your business even get successful? Well, starting a new and small business requires proper research, planning, efforts, and hard work, and control of emotions is highly important.
Businesses forget that they must keep themselves updated with modern technology and ways of carrying out business. This strategy helps in the remarkable growth of the business. Whether in terms of legislation or technology, businesses should be flexible enough to accept new things. The biggest change in today’s time that most industries are accepting is the introduction of cryptocurrencies. Although cryptocurrencies exist in the world since 2017 because these are in trend now, every business should start to accept bitcoins and other popular cryptocurrencies. Additionally, you can start trading bitcoin with the Bitcoin trading platform
Individuals and businesses, those who aren’t aware of the advantages and disadvantages that accepting bitcoins can provide to small businesses, must read this whole article. Let’s discuss it.
Advantages
High accessibility
To regulate bitcoin more globally, crypto exchanges, bitcoin wallets, trading platforms, and Bitcoin ATMs have been developed. Through a study, it has been found that half of the population has accessibility to bitcoin. Countries developed have even declared bitcoin as a viable medium of exchange, but underdeveloped countries struggle with bank accounts, but accepting bitcoins doesn’t require bank accounts. Bitcoin is available to the population that doesn’t even have access to banks or has bank accounts.
Elimination of banks
When transferring money through bank accounts, both businesses and customers have to pay huge business rates and other fees for account maintenance. They are even required to maintain a minimum balance in their account. The case of bitcoin is the opposite as users don’t have to pay deposit and withdrawal fees and even have to pay a minimal transaction fee. Bitcoin is an independent currency that doesn’t involve banks or any central authorities in its work, making it highly suitable for businesses.
Higher returns
Bitcoin’s value keeps on fluctuating quickly, but it doesn’t mean that businesses that accept cryptocurrencies can make huge money. But this means that because of bitcoin’s volatile market, businesses can even accept bitcoin when the price of bitcoin is high and can get it converted into fiat currencies to earn profit. Bitcoin also makes a great store of value that provides higher returns on its investments.
Anonymity
Sometimes, businesses don’t want banks or other people to know about their business or way of working. Those businesses can benefit from bitcoin as bitcoin maintains anonymity, and no other person can track your transaction unless and until you decide to publish your transactions. Businesses or individuals that want to remain hidden can keep their real identities anonymous with bitcoin.
Disadvantages
Fluctuating price
There’s a chance to earn profit with bitcoin because of its volatile market, where its price keeps on fluctuating. The bitcoin market is so volatile that no one can expect its future as its price may even skyrocket or crash down in minutes. Bitcoin’s market is so no stable, and there’s no central authority that backs the currency. Businesses that choose to start with bitcoin offer face the risk of fluctuating price of bitcoin. The best idea would be to convert your crypto coins into fiat currencies as soon as you receive them.
No regulations
Unlike traditional currencies backed and regulated by central authorities, cryptocurrencies are not backed by the government and aren’t regulated, which is a big disadvantage. People are not able to trust bitcoin because of the lack of regulations set by the government. No regulations are what increases the risk of investing in bitcoin.
Risk to crypto-assets
While cryptocurrencies use cryptography that makes them secure, there are still many security issues in the network and wallets. Wallets and crypto exchanges don’t offer high security to crypto holders, and there is always a risk where users can lose their crypto assets.
