Risks, rewards with Bitcoin payments
Business Technology | June 19, 2013
Bitcoins are getting to be a popular way for individuals to purchase goods and services online. The question, though, is if your business should accept this virtual currency. Entrepreneur Magazine recently took a look at this issue. Here are the key things they outlined about Bitcoins.
What are they?
Bitcoins aren’t real money – as Entrepreneur says, they are simply pieces of computer code – however they are used as real money by a lot of online vendors. Needless to say, a great number of vendors are disreputable. But more “real” online businesses are starting to acknowledge this currency. Entrepreneur lists such reputable vendors as Reddit, WordPress and Etsy as accepting Bitcoin. Remember, too, that Bitcoins only exist after individuals purchase them with real, old-fashioned money.
Safety issues
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 savviest of cybercriminals.
The benefits
Along with risk, there are some potential benefits to Bitcoins. For one, it’s a growing trend. Your small business may be required to accept Bitcoins to do business with certain online vendors. Secondly, Bitcoins don’t come with any fees or charges from banks or other financial institutions. They also aren’t taxed.
Bitcoins are getting to be a popular way for individuals to purchase goods and services online. The question, though, is if your business should accept this virtual currency. Entrepreneur Magazine recently took a look at this issue. Here are the key things they outlined about Bitcoins.
What are they?
Bitcoins aren’t real money – as Entrepreneur says, they are simply pieces of computer code – however they are used as real money by a lot of online vendors. Needless to say, a great number of vendors are disreputable. But more “real” online businesses are starting to acknowledge this currency. Entrepreneur lists such reputable vendors as Reddit, WordPress and Etsy as accepting Bitcoin. Remember, too, that Bitcoins only exist after individuals purchase them with real, old-fashioned money.
Safety issues
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 savviest of cybercriminals.
The benefits
Along with risk, there are some potential benefits to Bitcoins. For one, it’s a growing trend. Your small business may be required to accept Bitcoins to do business with certain online vendors. Secondly, Bitcoins don’t come with any fees or charges from banks or other financial institutions. They also aren’t taxed.