In a marketplace where transactions increasingly take place digitally, businesses must be laser-focused on how best to reach and cater to customers via the internet. Most considerations on how to provide the best business experience possible revolve around improving the customer experience – as they should. However, some considerations can be beneficial to both customers and businesses alike.
Cryptocurrency has rapidly become a major economic factor over the past decades, with millions around the world using it as both a form of payment and a tool for investment. Bitcoin specifically has taken the world by storm: with a market cap (as of December 2020) of over £250 billion, its impact is unavoidable.
Businesses seeking to provide their customers with additional methods of payment – or that want to be forward-thinking in terms of assets – should keep reading to learn four important facts about Bitcoin.
Bitcoin Supply Is Finite
Unlike some traditional forms of currency, Bitcoin offers one simple guarantee that businesses and investors can appreciate: it has a finite supply. Over the course of its lifetime, a maximum of 21 million Bitcoins will be in circulation. Currently, over 18 million Bitcoins have been “mined” (click here to find out what happens then).
All Bitcoins won’t be mined for another decade, but the current supply is both relatively steady and finite. As such, it is appealing to businesses and entrepreneurs seeking a currency solution that won’t dramatically be deflated in value due to government printing presses.
Bitcoin Eliminates Excess Bank Fees
With a majority of payments in the UK now made via digital forms of payment such as debit cards and direct debit, it is obvious that consumers prefer the digital over the physical. The number of cash-based transactions in the UK has fallen by nearly 80% since 2008, just to illustrate the trend.
While this does provide convenience to both the customer and the business, it also comes with one negative side-effect: bank processing fees. With many forms of digital and online payment resulting in a 2-3% surcharge, businesses lose a substantial amount of potential profit in the process.
Bitcoin eliminates these excess fees and allows businesses to freely accept, store, and move their payments for less than most banks charge businesses to simply process payments.
Bitcoin Acceptance Increases Sales
With approximately 5% of UK citizens currently in possession of Bitcoin, the potential for additional sales and customers is substantial. Businesses that choose to accept Bitcoin can take advantage of a reality in which a large percentage of businesses still do not accept this form of payment. End result? Increased sales for businesses that adopt this method of payment.
Bitcoin Is Easy to Buy and Sell
Fundamentally, accepting currencies such as Bitcoin is only realistic if businesses can easily use, store, buy or sell them. Otherwise, it creates a logistically challenging situation for entrepreneurs.
Thankfully, Bitcoin is increasingly easy to sell and buy. While once intimidating, a variety of reputable platforms now exist that make it easy for individuals to learn how to buy Bitcoin (and sell it). Peer-to-peer platforms such as Paxful are becoming popular, offering individual owners of Bitcoin the ability to trade their desired currencies. With more than 350 payment options available, Paxful ensures that nobody will ever have to ask how to buy Bitcoin or cash out their proceeds ever again.
Fundamentally, Bitcoin is a useful solution for businesses that want to expand their customer bases and avoid excess fees. These four facts will undoubtedly pique the interests of businesses seeking to revolutionize their current methods of operation and embrace the future of currency.