Bitcoins have generated big press lately. And why not? They’re a digital way for people and businesses to pay one another on the Internet. As Entrepreneur Magazine explains in a newly released story, these virtual coins are traded between people online with no trace being remaining. These virtual coins also don’t move through any banks or financial institutions. And this raises the question: Should your business take Bitcoin payments? Here, according to Entrepreneur, are the major questions you’re likely to have regarding this virtual currency.
Is it real money?
Bitcoins aren’t real money – as Entrepreneur says, they’re just pieces of computer code – but they are used as real money by many online vendors. Of course, a great number of vendors are shady. But more “real” online businesses are beginning to accept this currency. Entrepreneur lists such reputable vendors as Reddit, WordPress and Etsy as accepting Bitcoin. Keep in mind, too, that Bitcoins only exist after individuals purchase them with real, old-fashioned money.
How safe is it?
Businesses do accept a safety risk if they decide to accept Bitcoins. But it’s the 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.
The benefits
As a small business owner, is it wise to accept Bitcoins? You may want to sometime soon to work with certain online vendors. There are several benefits, too, to this online currency. Bitcoin transactions – as of now – aren’t taxed. In addition, there are no fees or charges from banks, credit cards or financial institutions involving such transactions.