After Elon Musk has announced that he invested $1.5 billion in BTC, the price of Bitcoin spiked and peaked at $60,000 in March 2021; many other major companies followed this step and have also made an announcement that they will in the future accept BTC payments.
A lot of companies like PayPal, MasterCard, Square, Microsoft, Shopify already accept BTC payments and support Bitcoin. In this article, we provide an overview of the incentives for companies to support Bitcoin and accept BTC payments.
Bitcoin Price Volatility
Bitcoin is a decentralized virtual currency, and it is known for its volatile nature. Since it was initially launched, Bitcoin has had several bullish cycles that only further boosted the price of BTC. In fact, during the last two bullish cycles, the price had risen by 224% from May 2020 to March 2021.
It means that the investors who had previously bought Bitcoin, when it was in a bear phase had gained a massive return of investment during bull runs. So, it is an opportunity for even smaller businesses to earn Bitcoin by accepting BTC payments in exchange for their services and products they sell offline and online.
It’s also easy for a business to offer this option. They need to invest in a secure storage option and a Bitcoin wallet. You will receive the payments through the public address of your wallet. If you have a website, you can inform your customers that you support Bitcoin payments.
Or, you can also connect your wallet with a touchscreen app. It will generate a QR code that enables BTC payments through the mobile wallets of your customers. Some of the most prominent corporations that support Bitcoin are Overstock, Namecheap, Twitch, Bloomberg, Etsy, AT&T, Expedia, and many other reputable brands.
Option to Trade BTC
Another useful option for small businesses is that they can also trade BTC after they’ve obtained it on online trading sites like CryptoEngine, which, thanks to AI technology, can offer advanced scanning of the market and deliver very accurate trading signals.
You could potentially earn up to $750 daily, while you only need to make a deposit of $250.
Another reason why Bitcoin is a valuable investment is that it is treated as a safe haven asset nowadays. Bitcoin has limited a supply of 21 million BTC. Because it is a popular asset, the demand is quite bigger than the supply, so the price is going to follow an upward trend.
Additionally, this is a decentralized, digital cryptocurrency that is not controlled or impacted by monetary policies, political crises, or any other events that might disrupt the global financial markets—this is why it is considered a safe-haven asset, considering its value has risen during times of uncertainty.
Another reason why companies will benefit from implementing Bitcoin is that it has low transaction fees. And this is a significant advantage for cross-border transactions because the transaction fees are negligible for the users. Hence, e-commerce sites will benefit from accepting BTC.
Besides, Bitcoin is powered by blockchain technology which is a peer-to-peer-based system, its processing time is around 10 minutes for each block transaction. Therefore, too many users find this extremely appealing when they buy items on online shopping sites or brick-mortar companies.
Many international companies need to send or receive payments to operate their functions. But it is found that many modes are slow. It may take more than five days to complete any massive transaction. There is a payment system known as PayPal, which is not available in various countries.
Therefore, it is necessary to look for the perfect system that exists in every location. Cryptocurrency like Bitcoin is acceptable in many countries. Hence, it is the fastest digital way of making payments. A company needs to have a digital wallet to deal with virtual currencies.
Within a few minutes, many transactions can take place. Therefore, many organizations are using this mode of payment, which is fast and secure.
BTC is an Investment
There are plenty of small companies which accept payment in Bitcoin and convert the entire amount into fiat currency. But when it comes to converting a large amount, then it is not possible. It is an indefinite asset, whose value keeps on increasing as the amount received in the wallet.
It is necessary to store the value until you sell Bitcoins or get the best market return. There is no need to pay the taxes before you sell the asset. Therefore, it is an investment in which many business owners take interest and consider it a saving asset for their future.
In past years, people know how to diversify their assets. They hold fiat currencies and take an initiative in foreign currency exchange. But using cryptocurrency, one can diversify it, and hence, it can be used as an investment. It stores some value, which can change with time.
But after considering the behavior of this digital currency in the market, there is a massive scope of increase in the value. Monetary diversification is possible in the case of BTC, and hence, many people take interest in accepting payments in this cryptocurrency.
Hedge Against Inflation
There is a bitter reality that all the fiat currencies are losing their importance and value with time. The decrease in the value makes people limited to the investment. The trend of investing in BTC is going high because its value is increasing day by day.
Undoubtedly, there is a fluctuation of price, but it is better to invest in it for the long term. It can be a hedge against inflation and save a company in its difficult times. During inflation, BTC becomes a hedge due to its increasing value.
Increase in Sales
There is a massive scope of expansion for various companies because it helps in increasing sales. After the introduction of BTC as a payment method, a small company owner can invite many international businesses for collaboration. One can access all the inaccessible products and services.
After the international collaboration, it is easy to increase sales and make more money. A small business owner can sell his products to different companies and improve his sales.
It is relatively helpful for the expansion of an organization. Therefore, many businesses are initiating interest in accepting BTC payments, and they are investing money in it for the long term.
In conclusion, Bitcoin is very popular not only because it offers tremendous advantages for its users but because it has created space for altcoins to exist.
On top of that, it also provided an alternative payment option that is not controlled by any central authority. And lastly, due to the secure design of the blockchain network, it will operate impeccably regardless of the number of users.