Bitcoin and other cryptocurrencies – including the hilariously-named Dogecoin – are fast becoming means of exchange. They’re, if you like, a bit like digital gold, a store of value that governments can’t inflate away, and a check on state power.
At the same time, they are also becoming more economically important. Companies are trialling accepting them as means of exchange as they become more popular and widespread.
In this post, we take a look at some of the questions that you need to ask yourself before you begin accepting bitcoin and other cryptos.
Does My Business Need This?
If your business is mainly with people who do not own bitcoin, then there isn’t much point offering it as a payment method. Customers will usually let you know if they want to use it by telling you, so listen to what they have to say. If there are no calls for you to use it because you sell to an older audience, then that’s fine – you don’t have to worry about it.
Do I Understand It?
If you don’t know the difference between crypto exchange and broker, then you’ll struggle when it comes to accepting bitcoin. Remember, the price of these currencies is not stable at the moment. Authorities widely regard them as “assets” and not “currency” because of how much they fluctuate up and down. Because of this, you’ll need mechanisms that allow you to quickly convert any crypto you receive from buyers into regular currency.
Am I Prepared To Offer Floating Prices?
Related to this is the fact that the fiat money value of cryptos varies a lot, so you’ll also have to incorporate this into your pricing system. You may need to offer a “float” value for crypto purchases that changes as the markets change, making sure that you also cover any transaction fees.
What Are The Costs?
While cryptos are much less expensive than traditional merchant banking, there are still some small costs involved. For instance, you’ll need to pay small amounts for various agents and conversions between cryptos. You may also need to invest in setting up systems for payment, and these might not be worth your time if you already have systems that work already.
What Are The Benefits?
On the flipside, you’ll want to figure out what the benefits of offering crypto will be for your business. For some firms, the positives will vastly outweigh the negatives but, for others, they may not.
Consider the benefits carefully. Ask yourself whether it is worth your time investing in new payment systems or whether you can make do with what you have right now.
Will It Be Banned?
Investing in crypto is all well and good, but if it becomes successful, your country might move to ban it. We’ve already seen this happening in China, but it could come to other places too.
Will it be banned? Nobody knows right now. However, the coins are taking away power from central banks and the elite, and this has them all on edge.
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