Bitcoins have become a popular way for people to purchase goods and services online. The question, though, is if your small business should accept this virtual currency. Entrepreneur Magazine recently took a look at this issue. Here are the key questions they outlined about Bitcoins.
Is it real money?
As Entrepreneur explains, Bitcoins are virtual currency. Individuals purchase them with real money and then exchange them online to purchase products and services from a wide variety of vendors – some reputable, some illegal – in the virtual world. According to Entrepreneur, an increasing number of reputable vendors – such as Reddit and WordPress – are accepting these virtual coins.
Businesses do take on a safety risk if they decide to accept Bitcoins. But it’s the very same risk they take with all online financial transactions. There’s no guarantee that a cybercriminal won’t hack their Bitcoin transactions. These transactions are encrypted. But that’s insufficient to deter the smartest of cybercriminals.
Why would any company choose to accept Bitcoin payments? For one thing, these payments have no credit card or bank transaction fees. They also aren’t subject to taxes. And if more online vendors are accept Bitcoins, it could be a trend you don’t want to miss.