There are numerous advantages and challenges to introduce Bitcoin and Blockchain technology to your small business. Today we see companies like Dish, Overstock, Microsoft, Dell, and more start to accept bitcoin as a payment. Though these giants have made the introduction, should your small business?
A cryptocurrency made in 2009, Bitcoin is a decentralized form of digital currency, which means that there is little to no government or bank involvement through any transaction being made. According to Fortune.com Blockchain is a " coding breakthrough—which consists of concatenated blocks of transactions—allows competitors to share a digital ledger across a network of computers without need for a central authority."
For the entire analysis of the advantages and challenges of bitcoin technology follow this link to Entrepreneur.com.
Here are just some of the advantages:
Compared to traditional two and three percent merchant transaction fees, Bitcoin has a relatively low cost- around zero to one percent. This is due to the decentralization of this technology; having no banks review the transaction there is a minimal cost.
Also, due to this decentralization, there is minimal wait. Blockchain will secure and verify each transaction automatically and process the payment far more efficiently than credit cards do.
The challenges include:
Though the United States accepts the use of Bitcoin some countries have not. This can be concerning for business that have international supply chains.
Also, some say that bitcoin is "unstable" in the sense that traditional currency can be regulated if the economy requires it. Bitcoin, once again due to its deregulation, would not be subject to any sort of regulation put forth by the Federal Reserve.