Should You Accept Bitcoin For Your Business? : Blog #5
Hello Steemians!!
Right now, Bitcoin is the 'talk of the town'. Even, your Grandma must be having an opinion on it.
Some of world's largest companies like Overstock.com, Expedia, eGifter, Newegg, Shopify(stores) & Microsoft are already accepting bitcoin as one of their payment methods. So, should you also start accepting the same? No, wait!
The aforesaid companies have power & muscles to weather storm(if any) so taking your business decision based on their moves is not advisable. Instead, you should do thorough analysis of pros & cons of accepting bitcoin from customers. Don't worry, I am here to help you.
So, let's dive in!
PROS:
- Free PR
Accepting bitcoin will give you free media/press coverage without spending a penny. Who doesn't like this? - Positive Brand Perception
When customers see that "Bitcoin Accepted" badge at your store then they will start to believe that yours is a truly innovative business that embraces new technology quickly. This will increase your business brand value. - Arbitrage Opportunity
Traditionally, fiat currencies do not increase in value. Example: You get $100 for goods sold & this $100 doesn't increase in value or make your business more rich. But, in case of bitcoin, there are chances that your sales proceeds may increase depending on bitcoin's price movement. Of course, there is risk involved.
CONS:
- Selling Price Fluctuation
Won't it be frustrating if you need to change your selling price every now & then? Example: You have bought a product at $100 & wanna book a gross profit of 20% on it. So, your ideal selling price will be $120. Right? But, if you start accepting bitcoin instead of USD, then your proceeds may be more or less than $120 (depending on bitcoin price movement) - Loss Probability
What if bitcoin's price suddenly starts to be drop after you just concluded a sales? Then, there is high probability that you will be making loss at gross level. Yes, we don't business to make losses. - Legal Issues
If the law in your country doesn't recognize bitcoin as a legal tender then your business might get into trouble for accepting such payments. So, before proceeding, consult your lawyer.
That's it! Thanks for reading.
PS: I am Vishal Gupta & I talk about practical business & growth-related stuffs.
You may connect with me over Steemit | Facebook | Twitter | Instagram | YouTube