Overview: Bitcoin For Business
The humankind is changing the world with technology and so is bitcoin. Bitcoin is a cryptocurrency that is changing the way in which people used to transact earlier. It is a technology driven currency that uses peer to peer technology to make payments faster and safer.
Digital currencies are those currencies which use internet as a medium to complete transactions between two parties. Unlike traditional currencies, digitalised currencies do not require the need of an intermediary to validate the transactions. For example: Bitcoin is a digital currency.
Bitcoin is not available in denominations like money but it guarantees payments for all kinds of transactions either small or big. Since bitcoin is a new concept, the vendors will start accepting the currency gradually.
How does Bitcoin work?
Bitcoin transactions are carried out through bitcoin exchanges or bitcoin wallet apps. The user needs to purchase bitcoin in order to make payments or transfers. There are certain terms and conditions of the bitcoin wallet that the users must be aware of. Thus, after the user has sufficient balance in his bitcoin wallet, he can start transacting in bitcoin.
Bitcoin originates from the process of bitcoin mining. Bitcoin mining involves solving of highly complicated and difficult mathematical problems which release bitcoin if solved. Thus, this is how bitcoin is obtained.
Bitcoin regulation policies still remains unanswered to many. Many bitcoin exchanges are trying to get the policies in place so as to make sure that people don’t hesitate while transacting in bitcoin. Regulatory policies give a fair and clearer picture to the public and they have confidence while transacting.
Business and Bitcoin:
Businesses also fear the usage of bitcoin due to lack of regulation. But considering the global scenario many companies have started adopting bitcoin as a medium of exchange.
Let’s have a look at some points which showcase the benefits of bitcoin to businesses:
Bitcoin is not governed by any taxes like other currencies. Thus, individuals can sell or purchase goods, especially luxury goods, in bitcoin which are otherwise heavily taxed by the government.
There is complete protection against fraud as complete transparency is guaranteed. The users can monitor all their transactions on screen without having to visit banks, financial institutions etc.
The transaction fee involved in bitcoin transactions is minimal. Thus, you save yourself from unnecessary costs. Besides this it also saves your time as you do not require to verify yourself and wait for the authorization process.
There are no barriers to making international payments as you don’t have to wait for approval and validation from a bank. The users doesn’t have to wait for three business days to make international payments.
Bitcoin is engaging a large number of new customers who are finding out ways to spend their purchased bitcoin. Thus, by accepting bitcoin businesses can give themselves a kick start to get new customers and improve their visibility as an entity. Accepting a new technology puts you in the category of early adopters and you get a competitive edge over the market.
The most important aspect of bitcoin mentioned earlier as well was transparency in the transaction process. Thus, an organization and the user both can maintain their accounts without having to fear about the fraudulent practices.