First and foremost it is important to know what Bitcoin is. It is a cryptocurrency or more understandable the digital form of cash. Do not think it is anything like PayPal or any other online payment service because it is the complete opposite. The money on PayPal is cash that someone earned and then, using the credit card, or some other source transferred it there. Bitcoin is a currency, while PayPal is an online payment system.
Bitcoin was invented in 2008 by Satoshi Nakamoto, but that is just a name the person or a group of people who developed this masterpiece used, while the true identity is unknown. Released in 2009, Bitcoin became popular in no time. The technology uses blockchains and verifies the transactions by the network nodes, and it is a peer-to-peer system. This is just a brief explanation and more information can be found on their website and all around the internet.
Bitcoin is widely used all around the world, but because of its benefits and constant cash flow, it is used more and more each day in the businesses. slotozilla.com was made with the help of Bitcoin.
Top 5 Reasons to Use Bitcoin
Probably the best attribute of Bitcoin is safety. All of the transactions, whether you are receiving or sending, are encrypted and highly secure. For the transaction to decrypt both sides must use the unique code provided by the service.
Each person has their profile and the wallet id. It found a great usage in the online gambling industry, as the huge amount of transactions occur each day, and the most important thing for the players is to make sure that their money can be safely deposited and withdrawn.
Once the transactions are confirmed, they are done in no time. How many times have you withdrawn the cash from the online payment service and had to wait for three, five or even more days before the money went into the bank account? Now you can simply take a few minute break, and the money is there.
3. No Fees
Bitcoin transaction fees vary from 0% to 1%. Compared to the 2% - 6% from other services, it is a no brainer which one is better. The bank does not need to approve the transaction because the blockchains do the job automatically and therefore the fees are almost non-existent. Sometimes you will be asked to pay a small fee of up to 1% just to make the transaction faster. No fee factor is incredibly important for businesses since the huge amount of transactions occur each day and the cash flow is enormous.
4. Universal currency
Companies often work with other firms which are located in another country, or even overseas on another continent. As the country changes, the currency does the same. That is where the money transactions become a problem because of the exchange rates and foreign transaction fees. Bitcoin does not face that problem at all because it is a universal (global) currency without borders.
5. Easy To Use
Bitcoin technology is very complex and to get familiar with it in depth, probably around 50 to 60 hours of reading and studying is required, if not more. It might sound like a bad thing, but it is not at all since you do not need to become an expert to use it. It is enough just to know how to make an account and learn the transaction process, and you are good to go.
It is recommended to educate people in your business about it because Bitcoin knowledge is very important for the financial sector. Many universities and colleges already teach young people about the whole technology behind it.
Concerns and Solutions
Just like everything else, Bitcoin is not perfect at all.
- Bitcoin is not regulated
- The currency is unstable
- Hard to implement in the long-term plans
Government support is something that Bitcoin lacks. The decentralization might be great, but the fundamental thing about the currency is the government support. Your business might have some issues when working with Bitcoin and foreign countries because it is banned in some states. Countries like Russia, China, India, Iceland, and Sweden have either banned or restricted the usage and mining of Bitcoin.
If you look at the USD, EUR or any other currency ratio with Bitcoin in the last 5 years, for example, you will be shocked. In 2012 Bitcoin was equal to $5, and nowadays it is about $1000. In theory, the value of Bitcoin can drop or increase by several hundred percents in no time. If the business makes a $1000 transaction in Bitcoin which is currently equal to 1 Bitcoin, the company receiving the cash has no idea how much is that 1 coin going to be worth tomorrow.
However, companies Coinbase.com and BitPay.com have a solution for that. As the sender pays in bitcoin, the receiver will get the cash in any other desired currency. So basically, what they do is they immediately after the payment was done do a currency conversion, guaranteeing the value to the receiver.
Some of the companies that accepted the Adyen BitPay system along with Bitcoin are:
- Virgin Galactic
Those are giant businesses meaning that if they trust the system, why wouldn't anyone else. As they are a huge factor in the global market in different areas by implementing Bitcoin in their firms they only helped to get Bitcoin more popular, gain customer confidence and become reliable.
Overall, Bitcoin has both advantages and disadvantages, but in their eight years of existence they have overcome many obstacles, and can only improve. If you are thinking about implementing Bitcoin in your business, then it might be the best to consult and expert not only in the technology field but also in economics and get familiar with fundamentals as well as the young and successful projects such as Bitcoin itself.
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