May 22 is referred to as “Bitcoin Pizza Day,” because on that day in 2010, a programmer named Laszlo Hanyecz engaged in what is widely considered to be the first cryptocurrency commercial transaction: he bought two pizzas with 10,000 bitcoin. Given the current price of bitcoin, that works out to over $170 million per pizza.
Twelve years later, bitcoin is more mainstream, especially in the worlds of technology and investing, but businesses that accept any form of cryptocurrency are still considered fairly exotic.
However, if the evolution of cryptocurrency as a means to transact business follows the typical technology adoption curve, today’s early adopters will soon be joined by many others. So should your business start accepting cryptocurrency as payment for goods and services? It depends. It will inevitably become a more seamless process, but today there are still some complications and risks you need to be aware of—and also many potential benefits.
Pros and cons of accepting cryptocurrency
When it comes to cryptocurrency, one person’s “con” is another’s “pro”—so whether your business should transact in cryptocurrency depends heavily on your goals and appetite for risk.
Pro: Payments are irreversible
The fact that crypto payments are irreversible is a benefit to businesses. Only the business receiving the payment can issue a refund—there is no third-party payment processor who can claw back a payment in response to a baseless fraud claim.
Pro: No payment processing fees
In addition, unlike with credit card transactions, there are no “middle-man” payment processing fees with crypto transactions. Because it is a digital currency that doesn’t flow through a bank or other third party, there are no fees required for a customer to transmit and a business to accept bitcoin.
It’s important to note, however, that there are fees involved for a business to convert bitcoin to dollars, should it choose to do so. Companies such as Coinbase provide merchant services (for a fee) that immediately exchange digital currency for its cash value.
Continue reading: https://www.allbusiness.com/should-you-accept-cryptocurrency-at-your-small-business-learn-the-pros-and-cons-209708-1.html
Twelve years later, bitcoin is more mainstream, especially in the worlds of technology and investing, but businesses that accept any form of cryptocurrency are still considered fairly exotic.
However, if the evolution of cryptocurrency as a means to transact business follows the typical technology adoption curve, today’s early adopters will soon be joined by many others. So should your business start accepting cryptocurrency as payment for goods and services? It depends. It will inevitably become a more seamless process, but today there are still some complications and risks you need to be aware of—and also many potential benefits.
Pros and cons of accepting cryptocurrency
When it comes to cryptocurrency, one person’s “con” is another’s “pro”—so whether your business should transact in cryptocurrency depends heavily on your goals and appetite for risk.
Pro: Payments are irreversible
The fact that crypto payments are irreversible is a benefit to businesses. Only the business receiving the payment can issue a refund—there is no third-party payment processor who can claw back a payment in response to a baseless fraud claim.
Pro: No payment processing fees
In addition, unlike with credit card transactions, there are no “middle-man” payment processing fees with crypto transactions. Because it is a digital currency that doesn’t flow through a bank or other third party, there are no fees required for a customer to transmit and a business to accept bitcoin.
It’s important to note, however, that there are fees involved for a business to convert bitcoin to dollars, should it choose to do so. Companies such as Coinbase provide merchant services (for a fee) that immediately exchange digital currency for its cash value.
Continue reading: https://www.allbusiness.com/should-you-accept-cryptocurrency-at-your-small-business-learn-the-pros-and-cons-209708-1.html
