It’s not clear if Satoshi Nakamoto is a man or a woman. Satoshi’s a kind of mystery person or pseudonym used by a group of people who first developed the bitcoin idea. What’s clear is that someone named Nakamoto wrote a paper in 2008 in which the concept of a peer-to-peer digital currency system was shared throughout a cryptography mailing list. Nakamoto soon launched bitcoin.org, a website that encouraged collaboration in developing a virtual wallet that would enable virtual coins to be spent. While it may have seemed like an outlandish idea back then, bitcoin is quickly gaining traction. Approximately 80,000 businesses currently use it, according to a recent article in Entrepreneur Magazine. What follows are more reasons why every business should be adopting this innovative new payment system.
It’s more affordable for small and medium-sized businesses
Businesses incur transaction fees whenever they accept credit card payments. Those fees add up. The processor will often charge anywhere between one to five percent. Merchant account providers can charge an additional fee. It depends on the credit rating of the business. The bottom line is that these fees add up. While they’re manageable for big box retailers and other large businesses, they are exorbitantly expensive for those of modest size. Using Bitcoin, however, substantially lowers credit card fees that cut into a small or medium-sized merchant’s profit because the virtual currency works outside of the traditional credit and banking structure. Bitcoins rotate through a network of “miners.” Miners ensure that transactions are valid and receive freshly minted bitcoins in exchange. Fees incurred during bitcoin transactions vary. Being a peer-to-peer system means that its users decide, but a credit card transaction of $100, for example, would cost around $0.61 if bitcoins were used instead.
Paypal may soon be accepting bitcoin users
Bitcoin may have seemed like an idea too weird to take seriously back in the days when it was first conceived. Many now believe, however, that it’s the next big trend in e-commerce. Paypal is just one of these believers. Coinbase, a virtual currency exchange, will be using the Paypal infrastructure to enable bitcoin sellers to deposit the money they receive from bitcoin buyers into their Paypal accounts, which should be all the assurance that merchants need that bitcoin is a legitimate currency to do transactions with.
Bitcoin’s more secure
Recent reports have shown that Identity theft is a growing problem. It doesn’t just impact individuals. It also affects commercial real estate loans. Bitcoin gives users the ability to do financial transactions without having to share their names, addresses and other confidential information that often leads to fraud. Consumers hesitant to buy a product or service from a merchant using a debit or credit card can have the extra assurance that the transaction won’t be risky.
Purchases can’t be disputed
Chargebacks are necessary protection for those who use their cards to make purchases. Unfortunately, customers often abuse the chargeback system and are commonly given back money for products and services they end up obtaining for free. Credit card companies also charge Merchants high chargeback fees. Bitcoin purchases are final, however. They can’t be reversed or disputed.
Accepting bitcoin for products and services is the next inevitable phase of doing business. The good news is that it’s actually more secure than the traditional methods of payment merchants receive when doing non-cash transactions. Bitcoin many not yet be an official form of currency, but it’s a secure payment solution that eliminates high credit card and currency exchange fees. Furthermore, it gives cautious shoppers a level of protection that charge cards don’t, which is why smart businesses of all sizes shouldn’t wait to get on the bandwagon.
By: Sia Hasan