I first heard about Bitcoin mid-2014 whilst studying at University. I had read an article about a fortunate Norwegian student who had purchased Bitcoin for a mere $29 in 2009. The student had completely forgotten about his initial investment until widespread media coverage during a 2013 price rally jogged his memory, by then his initial investment had grown to $886k. As a result, he was able to afford an apartment in an affluent part of Oslo with is newfound wealth. Lately, Bitcoin has seen some seismic fluctuations in price and volatility. Last year, Bitcoin was thrust into the mainstream, and consequently numerous retail investors acquired and traded Bitcoin, the capital flowing into Bitcoin was at unprecedented levels. Furthermore, a number of hedge funds and high net-worth individuals acquired large stakes in Bitcoin and crypto currency markets. Bitcoins price point at the beginning of 2017 was around $985 USD, by the end of the year it had rallied to $19,343 USD, a 1,963% increase. Bitcoin is now a household name, a brand, a dream, and a manifestation of the current technological age we live in. So with all the hype, why utilise Bitcoin as a payment method? Let me outline the logic behind accepting Bitcoins. 

1. Its not as complex as you think

Many people struggle to wrap their head around the blockchain technology which underpins Bitcoin and other crypto currencies, consequently, the idea of utilising it as a payment method seems too complex for some Businesses to bother. However, firms such as Bitpay and Coinbase will take you through step by step, providing excellent support and customer service whilst you implement Bitcoin as a payment application. 

2. Bitcoin espouses technological advancement

Bitcoin, will showcase your company’s willingness to embrace technological change, and imply that the vision of your organisation is one of forward thinking and advancement. I have seen a few Businesses around the Melbourne area which have utilised the functionality and value of Bitcoin as a payment method. From luxury car rentals, fashion houses, to video on demand websites. These Businesses all espouse sophistication, technological innovation, and a forward thinking philosophy within the mind of the consumer. 

3. Price volatility? no problem 

Ever since the inception of Bitcoin, the price volatility has been tumultuous. I have personally invested a modest sum in Bitcoin, and it has certainly been an uncharted venture. Understandably, an objection to Bitcoin as a payment method is volatility, Business owners do not want to accept a payment in Bitcoins, and have that payment halve in value overnight. However,  fortunately Bitpay and Coinbase have setup an automatic conversion application. Consequently, your Business can accept a Bitcoin transaction, and in turn the sum will be automatically converted to US dollars. Therefore, your Business would only be subject to volatility relative to the US dollar. 

4. Increase your bottom line

The beauty of Bitcoin is found in its utility, Bitcoin can lower your transaction fees significantly and in turn increase your Businesses profitability. Bitcoin cuts out the middlemen, it cuts out the banks, credit institutions and hence costly transaction fees. Furthermore, owing to its utility, transactions are significantly faster than traditional payment methods which need clearance from the representative banks of both parties. This may not sound like a critical issue within the Australian market, however for international transactions, the cost and time of these transactions all cut into the overall profitability of your Business. Additionally, providing efficient and convenient transactions is an important part of the exchange process of any Business, and can in turn increase your overall sales. 

5. Marketing and Fundraising 

Bitcoin, can increase the visibility around your Business and in turn raise ‘brand awareness’. It is possible to introduce a marketing program around your Business, educating the consumer on the benefits of using Bitcoin from a utilitarian and functional standpoint. Moreover, accepting Bitcoin payments would position your Business as an industry leader within technology and crypto currency spaces. Lastly, there are a number of Business directories for Bitcoin friendly Businesses which can enhance your Businesses visibility, these are: Spendbitcoins.com; Coinmap.org; and Weusecoins.com. If you happen to be a non-profit or charity, there are some significant examples of Bitcoin being used to raise capital/funding. The entire Jamaican bob-sled team used crowdfunding and a similar crypto currency to Bitcoin, in order to fund the Sochi olympics. Without funding through the use of crypto donations, the bob-sled team would not have been able finance the trip. Another example of fundraising involves Wikileaks, which saw the American government place a financial blockade on donations to the website. Wikileaks was only kept alive by the use of Bitcoin donations.

Essentially, the blockchain technology underpinning Bitcoin is here to stay, and with technology becoming a ever increasing part of our lives. I believe multiple Enterprises across a wide range of industries and sectors can benefit from the functionality of Bitcoin. Feel free to leave a comment below and or share this article.

Thanks for reading,

Eddie