Is Bitcoin Ideal for Entrepreneurs? How Can They Use Them?
You may be having doubts whether Bitcoin is a reliable investment for an entrepreneur. This is perfectly natural because when you think of Bitcoin, you automatically think of price volatility and macroeconomic uncertainty. At the same time, there is enough scope for using the Bitcoin smartly and prudently, and making it a part of your business’s success. It is encouraging to know that despite the criticism that cryptocurrencies face, a huge number of businesses are now using the blockchain technology while many others are lowly queuing up behind them.
What makes the Bitcoin ideal for entrepreneurs?
- One of the biggest reasons to choose Bitcoins is the fact that it is decentralized. So, there is no state institution or bank that will issue or regulate Bitcoins. When a coin is decentralized, security is bound to be higher. It is far less vulnerable to hacks or security threats, making your business more efficient and resilient. Moreover, transactions being anonymous, it ensures that private information does not have to be divulged as in the case of fiat currencies. This can be appealing to business owners.
- When you use Bitcoins, there are hardly any infrastructural costs. You can trade it using cell phones. These cryptocurrencies are especially in demand in countries where banking systems are lacking or under-developed, like in parts of Africa. Installing an Internet connection is easy and Bitcoin is likely to enjoy mainstream adoption sooner than later.
- Today, working with apps has become the order of the day. Similarly, using Bitcoins for business is super convenient and easy. While the underlying blockchain technology may be a tad complicated for you to understand, using Bitcoins is hassle-free and there is learning curve involved for entrepreneurs.
- When you run a business, you will obviously choose to use services that can facilitate cross-border transfers without any difficulty. While you have payment mediums like PayPal that charge lower rates than bank transfer, there are still charges involved and you may have to deal with many configuration problems. With Bitcoins, international money transfers are a breeze and there is no third-party charge involved.
- Another huge advantage of using Bitcoins is that it is inflation-resistant. Since Bitcoin has a finite supply, it is not prone to inflation like any fiat currency that is issued or controlled by governments. Bitcoin mining difficulty levels keeps increasing as more and more Bitcoins are released and this is why the Bitcoin will not lose its value. This also makes Bitcoin a far more viable alternative to fiat currencies in places which are plagued with hyperinflation like Venezuela.
- Bitcoin does not require you to make major changes in order to be used or complex systems to be installed for businesses to use it. You can use it seamlessly through computers and smartphones; there is no additional investment on part of business owners to use the Bitcoin.
- Businesses find using Bitcoins more convenient because there is no more waiting for long for payments to arrive. Bitcoin transactions are faster and many businesses and giant corporations like Microsoft have today started accepting Bitcoins.
- Finally, entrepreneurs will find Bitcoin an easy way to reach out to newer demographics. It can benefit businesses in nascent markets, especially in developing countries where traditional banking systems are lacking or flawed.