In the finance world, 2017 was the year of Bitcoin, but there are no signs of it slowing down. Some industry insiders expect that it’ll be worth up to £70,000 by the end of this year, a massive increase on its current value of £8,000. However, the entire market is still worth a relatively tiny £200 billion. Even the government wants a piece of Bitcoin, but why should your business consider the cryptocurrency as a form of payment? There could be a number of advantages, both financially and in terms of branding and marketing.
It’s Low Risk
The tiny size of the Bitcoin market relative to the trillions of daily transactions may make investing in the cryptocurrency seem pointless, but this does have one major advantage. Less than 1% of purchases are made using Bitcoin and the vast majority of Bitcoin owners have a tiny amount to spend, so you’ll be safe if its value tanks. This means that choosing to accept the currency is an extremely low risk option.
If Bitcoin does continue to gain value as predicted, then you’ve made a good profit. If, however, its value plunges, you can stop accepting it and won’t have not lost too much. From a purely financial perspective, it’s a low risk strategy which could have some other major advantages.
Save on Bank Fees
Traditional payment methods have to go through a middleman, such as a bank. This slows down the speed of transactions and usually comes at a cost. As a business dealing with large amounts of money, you will be spending a fortune on fees. PayPal will take a 2-3% fee, with other companies taking even more.
Bitcoin’s popularity comes from 0% bank fees. You deal directly with the customer, which simplifies and speeds up the process. This makes doing business easier and creates savings which can be passed onto the customer. Offering a ‘Bitcoin discount’ could be a great marketing strategy.
Building a Brand as an Innovator
A strong business is in tune with the mood of the public and able to follow trends. Bitcoin is everywhere in the media right now, but few businesses accept the currency as payment. By taking this step, you will be seen as an innovative industry leader, while empowering your customers by providing more options. This will no doubt catch the eye of the media and bring attention to your company. Even if few customers actually use Bitcoin, you will have increased brand awareness by taking this step.
The future of Bitcoin is far from certain, but accepting it as payment diversifies your business and could bring a range of benefits. It is a low financial risk, but will bring media coverage and brand recognition to your company. Get in now, while Bitcoin is still big. If cryptocurrencies take over then you will be known as an entrepreneur ahead of their time and able to reap the rewards sooner.