Bitcoin is an innovative technology solution that reduces the cost and error of international transactions. You can trade bitcoins without needing any special training by using this source. People in industries from manufacturing to retail sales can leverage Bitcoin’s advantages. These are just a few of the many compelling ways that bitcoin technology can benefit businesses.
Blockchain Basics: What Is It?
Blockchain can be described as a database. These databases are often known by the names spreadsheets and databases. They have records that cannot easily be altered or altered by anyone. Each new block is linked to the previous block by an algorithm that considers the results of the previous blocks to ensure that all the “truth” of the chain remains intact.
One of bitcoin’s significant features is its open, peer-to-peer protocol, where anyone can receive and send bitcoins to anyone else. It also permits bitcoin transactions to be made between people who don’t use Bitcoin for payment. However, this feature also provides a path for people and companies to transact even if they don’t have access or no access to bitcoins technology. Now that you have understood the basics of two prominent entities of decentralized finance, let’s explore the benefits of bitcoin for performing business transactions.
1. Bitcoin mitigates transaction costs:
Businesses have migrated to bitcoin payment processing due to the reduced transaction costs and risk of settlement. When you buy or sell something with bitcoin, it doesn’t require any middleman, such as a bank, to clear the transaction.
There are no fees for shipping and brokerage when buying bitcoin. And there is no charge to clear your transaction with any third-party. Therefore, when you’re transacting in business and need to move money internationally it becomes very difficult to find cost-effective alternatives. Bitcoin’s low cost of sending money also means lower risk; if your customer can’t pay you, they cannot default on their obligation.
2. Bitcoin processes international transactions just like a pro.
Bitcoin’s ability to settle transactions internationally makes it an ideal virtual currency for businesses dealing in international transactions. For example, when you’re selling to someone in any country outside of your customer’s country, the transaction can take time to clear.
It can be an issue when you must transfer money from the country of origin to your bank account in another country where there’s a high risk of transaction failure. However, if you’re using bitcoins in your business, it allows for faster and more secure international payments. International payments made using bitcoin are free from any banking risk or clearing fees.
3. There is no cost to buy Bitcoin
When you’re a merchant and want to accept credit and debit card payments, it’s necessary to build the infrastructure to handle chargebacks. High-risk chargebacks can lead to merchant liability. Fraud, fraudulent/counterfeit card, stolen cards and bad customer service can all lead to chargeback risk.
Your business doesn’t have to be concerned about the risk of chargebacks with Bitcoin. There are no charges once money has left your account. The clearing and settlement of credit or debit card transactions can take between 3 and 5 days depending on their geographical locations. However, Bitcoin transactions are not restricted.
4. Bitcoin adds an extra layer of security
Accepting debit and credit cards payments for your business requires that you follow certain security protocols, such as password protection or encryption. You can be sure that nobody has access to your business or banking accounts, and you won’t make malicious transactions.
Bitcoin comes with an additional layer of security because all transactions are logged in the public ledger, which a hacker cannot erase. If someone attempts to gain access to your bitcoin wallet they are denied the right of entry.
In addition, businesses are also required to comply with local tax regulations and meet their respective countries’ import/export requirements. Bitcoin is able to facilitate fast and accurate delivery at fractions of the costs that are incurred with traditional paper-based transactions.
Businesses worldwide have already started adopting bitcoin technology for streamlining their business process, so why not use some of bitcoin’s powerful features for your business today.
Entrepreneurship Life’s first article was entitled Bitcoin Easing Transactions in Businesses