Most of the time, small business owners require funds to meet various needs, like introducing new products/services. Small ventures often require cash for daily business activities, such as buying raw materials, business promotions, and others. By the nature of the activities, small businesses require a system of payment that is prompt. And this is how Bitcoin comes in. Digital currency is fast and completes transactions within no time. While some businesses have invested in Bitcoin and are reaping its multiple benefits, others haven’t done so. This is understandable given the fact that Bitcoin is a relatively new class of investment assets. As a small business owner, it’s essential to explore this virtual currency’s opportunities and benefits. To realize how you can benefit from Bitcoin, please continue reading.
Before exploring the benefits of Bitcoin, it’s critical to start from the basics. If you’re a beginner, you may wonder what Bitcoin is or what cryptocurrency is in general. Bitcoin is a virtual currency that’s supported by a decentralized system known as the blockchain. The decentralization attribute makes Bitcoin an independent virtual currency, which lacks governments’ backing and control. Bitcoin isn’t the only virtual currency, as the market is now awash with multiple currencies that serve various purposes. However, Bitcoin market capitalization is the largest in the market, occupying 66% of all cryptocurrencies.
Why should you invest in Bitcoin as a small business owner?
If you own a small venture, there are many reasons why you should invest in Bitcoin. Some of them include.
Bitcoin is decentralized
One of the compelling reasons you should select Bitcoin as an alternative vehicle for your investment is decentralized. Being decentralized here means that governments or financial institutions don’t control the digital currency. Because of this attribute, payments through the platform are quick and affordable than the traditional methods. Another advantage of decentralization is that you can conduct your transactions without fear because no third-party can access your financial and personal information.
Hedge against inflation
As per the bitcoin code, the maximum amount of Bitcoin to mine is 2100 million. In contrast, fiat money doesn’t have a limit on what should be printed. During economic hardships, governments may decide to print more currency pieces and end up inflating the economy. And this is dangerous to your investment assets at the stock markets Inflation may hit them and end up losing their value.
Because the amount of Bitcoin to mine is known at any given time, it’s an excellent hedge against inflation, rivaling gold at the moment. And many businesses are considering buying Bitcoin due to this attribute. Therefore, if you possess a small business, you should consider investing in Bitcoin to hedge against inflation.
The trading of Bitcoin is hassle-free compared to the standard trading of shares at the stock markets. If you wish to trade shares at the stock markets, you must have the certificate and go through a stockbroker. Besides wastage of time through these procedures, they’re also expensive.
On the other hand, when you want to trade bitcoin, you’re only required to have a wallet, buy Bitcoin from exchanges, and start trading straight away. You can also use different software, like Bitcoin prime app, to simplify the work for you.
Low Business Risk
Users of blockchain technology can see what’s happening at any given moment. They can see the number of coins mined at any time and the trading volumes. The fact that everything happens openly reduces the possibility of shady deals or anybody playing fast and loose with your investments. This isn’t the case with the standard fiat system, where banks are responsible for keeping the ledger, and investors can’t evaluate what’s happening. And here, chances of unquestionable deals happening are high.
Do you remember the 2007-2009 house crash in the US? The recession happened as a result of institutions gambling with the assets of investors. Sadly, the US government had to use the taxpayer’s money to bail out the irresponsible institutions. And this happened because the financial institutions’ ledgers aren’t open to investors for scrutiny.
An affordable investment choice with handsome returns
Perhaps you’ve been giving Bitcoin a wide berth because of erroneous thinking that it’s an expensive option. However, this isn’t the case because digital currency is an affordable investment option for anybody, regardless of their social status. Unlike an investment in stocks that require massive amounts, you only require a paltry $100 to invest in Bitcoin. And the returns are massive if you’re patient enough. Even though the cost of 1 unit of Bitcoin is approximately $10000-$11000 at the moment, you can invest in a portion of it. And this is exciting news for you as a small business owner.
And the other good news about investment in Bitcoin is that its return on investment is outstanding compared to the stocks. However, before investing in it, you should evaluate the amount of risk you can accommodate. Remember, Bitcoin is a volatile digital currency.
Currently, Bitcoin isn’t regulated by any government. As a small business owner, you can benefit by investing in Bitcoin because you won’t pay taxes. Because IRS has signal tax regulations in the US, businesses outside the US can enjoy the free tax benefits.
Because of the massive positive analysis of Bitcoin, its value is likely to be rising for many years to come. Furthermore, multiple institutions like banks and investment companies have expressed interest in buying digital currency.
Due to the positive analysis and many mainstream institutions expressing interest in it, you must consider buying it. And remember that sighting a viable investment opportunity is a challenging task, but Bitcoin has presented itself to you.
Better Payment method
Do you feel inconvenienced when your transaction takes a long time to complete? As indicated earlier, small businesses require regular cash for smooth operations. However, as a business owner, you may get annoyed when settlements take like five days to go through. Fortunately, the best thing about Bitcoin is that translations get complete almost instantaneously.
Standard transactions take time to complete because banks must verify them. However, Bitcoin is a decentralized platform that operates on a peer-to-peer approach. And many businesses are embracing Bitcoin due to this fact.
Small businesses require more clients to buy their offerings. And Bitcoin is good at this because of the exposure it offers your business. Bitcoin has a dedicated community of investors, minors, and other individuals determined to see it succeed. This community is ready to support businesses that embrace Bitcoin. When you choose the digital currency, the Bitcoin community can support your business by buying your offerings.
Secondly, your business can get more exposure through listing on particular sites that support Bitcoin. And the publicity can result in more opportunities for your venture.
Being in the infancy
The digital currency idea is at its infancy stage, and many people have yet to embrace it. So joining it at this initial stage allows you to be with individuals who are accommodating the change. And some people think that Bitcoin is a revolutionary idea for individuals who yearn for financial freedom. This is because the Bitcoin infrastructure is decentralized and operates outside the regulations of Big Brother.
Transaction processing is one of the pain points that afflict business owners using the standard methods. Besides delayed transaction completion, standard payment methods can expose your financial and personal information to third parties. And sadly, if scammers come across the information that you leave behind while transacting, they may use it to defraud you. Many people have been victims of security breaches through information left behind while transacting with credit/debit cards.
Fortunately, the situation is different on the Bitcoin platform. While transacting on Bitcoin, you’re assured of information security because Bitcoin is supported by an encrypted system called the blockchain. Volunteers worldwide work around the clock to encrypt all the settlements that happen on the platform. This ensures that all information through the platform is concealed from malicious individuals and spying eyes.
Furthermore, Bitcoin is a public system, meaning that users can see all the transactions on the platform. Its transparent nature makes it foolproof, and nobody can scam or conduct shady deals on it.
Bitcoin’s immutability also makes it a perfect system for small business owners. All the system transactions are irreversible, and nobody can start complaining after settlements have gone through. Immutability overcomes the challenge of chargebacks that is present in the standard payment systems.
Small business owners are always experimenting with ideas that can expand their business fast and lead to an extended client base. Bitcoin is a fresh idea that can distinguish you from your rivals.
As a small business owner, using Bitcoin offers you multiple perks. Some of them include prompt payments, the security of transactions, high exposure of your business, and others. Because digital currency overcomes some of the weaknesses of standard investment and payment methods, it’s essential to embrace it.