Bitcoin can be adopted for payments, investments, and trading purposes. Although some of the major economies are still not accepting bitcoin due to its high volatility and decentralized nature. Most investors store bitcoin as a long-term investment and choose bitcoin as an asset class. Although bitcoinrevolution is the most trusted trading platform, some says that bitcoin payments are still at its infancy, and till now, only a few economies and companies have been using bitcoin for exchange. Bitcoin is the easiest, safest, and most secure way from the traditional payment system and benefits many companies and individuals with its unique features.
Some technical and import-export companies accept bitcoin to make and receive payments overseas at a relatively lower cost and less time-consuming than the present fiat currency transfers. Bitcoin is pushing companies and the present financial ecosystem toward a digital world accessible to recordkeeping, maintenance, better tax collection, cost-efficient, and time-saving. Bitcoin uses blockchain as a base to transact and can use blockchain to store other essential information of companies. Can use blockchain to maintain different ledgers using the DLT technology. It is safer and prevents double entry.
Reasons for early adoption of bitcoin by companies: –
Lower transaction fees: –
As a decentralized currency, Bitcoin does not use a central medium of exchange. Therefore, it makes the transactions cost-efficient. As a result, companies are adopting bitcoin early as it saves up to 10% of the total transfer costs.
Suppose a trading company is involved in the oil trading business. The oil trading business is outspread worldwide and involves multiple partners. Oil trading includes many payment transfers in a single day, and companies must make overseas payments. Making overseas payments with the traditional system can be time and cost-consuming. So companies are adopting bitcoin as a better payment system and bypassing the wire fees, bank charges, exchange, and broker costs.
Flexible payments: –
Using central mediums to make payments means visiting the banks, post office, or any other financial institution to validate the transactions. Reducing the visits to banks, brokers, or exchanges. You can make and receive payments at any time and anywhere. Thus, facilitating the flexibility of payments. Payments through bitcoin can be made using mobile phones for coin exchanges as long as they have an internet connection. Unlike debit and credit cards, this uses personal identities to track transactions. At the same time, bitcoin does not require personal identities or information to track the transaction. Thus, offering great flexibility and discretion to customers.
Bitcoin transactions are irreversible, it can’t be reversed once it is done. The merchants will receive the payments as soon as the funds are transferred to their accounts. Bitcoin does not allow fraudulent transactions, payment disputes, and chargebacks when the transaction is completed using blockchain.
Customer base: –
People are more likely to adopt the changing technology in digital payments. As a result, people and companies are finding more viable mediums for making and receiving payments. It was not before the blockchain entered the market and became commonplace for exchange for regular business and MNCs transactions.
A surety is that the number is continuously growing. According to a study at the beginning of 2019, there were 32 million blockchain users. The number has grown to 40%, with 45 million users worldwide at the beginning of 2020. Businesses are starting to accept bitcoin. Offering a bitcoin payment option into their current acceptance list will open their business to a large customer base as the customer using bitcoin may gravitate toward the companies accepting bitcoin payments. Same as the customers who used to work with merchants that accept online payments rather than liquid money.
Looking ahead: –
Bitcoin payments are not the same as credit card payments. Bitcoin payments offer benefits to businesses and consumers by saving money, time, and cost. Almost 50% of businesses will soon start accepting bitcoin payments or shift to blockchain-based payments. Businesses closely associated with consumers daily are also ripe to accept cryptocurrency payments. The benefits associated with bitcoins are not limited to specific company sizes. Every business around the globe can take advantage of bitcoin payments. It helps bitcoin payments to become popular, gain trust and grow.
Bitcoin offers multiple benefits; bitcoin payments are still not fully grown and going through their infancy. Bitcoin needs some more time to outspread its benefits, and people come to know about the easy transactions.