Bitcoin is the world’s introduction to the limitless possibilities that a decentralized digital currency can enable. From near-instant peer-to-peer transactions with lower transaction fees than traditional payment systems to enabling frictionless international payments for goods and services, cryptocurrencies like Bitcoin have the potential to revolutionize the future of finance.
Published by pseudonymous developer Satoshi Nakamoto in 2009, Bitcoin has grown to a market cap of nearly $800 billion. At the time of this writing, there are approximately 900,000 active wallets on the Bitcoin network, with a daily transaction volume of $34,530,436,121.
Transactions on the Bitcoin network are fully decentralized, meaning they don’t require the approval or oversight of a third-party intermediary. Instead, the processing of transactions is distributed amongst a vast network of computers called miners. These miners are rewarded for their efforts on the network in Bitcoin, which incentivizes them to keep the ecosystem running smoothly.
So how can your business benefit from Bitcoin?
Accept Bitcoin as payment
The most obvious way that your business can benefit from Bitcoin is by accepting Bitcoin as a form of payment. The transaction fees on the Bitcoin network often cost much less than traditional payment networks, and can be processed nearly instantly.
By accepting Bitcoin for payments, you also open your business up to a much wider customer base. Many international clients have begun opting to transact in Bitcoin, as it’s a much simpler and faster process than converting their national currency.
Transactions on the Bitcoin network don’t need to go through traditional credit clearances either, resulting in faster and more efficient payments for goods and services.
Differentiating from competition
Another benefit of accepting Bitcoin as a payment method is that it likely differentiates you from your competitors substantially. The vast majority of businesses have not yet adapted to cryptocurrency payments, meaning there is a unique opportunity to capture that market segment before your competition does.
Holding Bitcoin on your Balance Sheet
Your business also has the option to purchase and hold Bitcoin as an asset on its balance sheet. This allows your business to expose itself to Bitcoin as an asset class, which many analysts have predicted will outpace inflation over the next several years.
Companies like MicroStrategy and Tesla have already begun implementing this strategy over the last few years. MicroStrategy’s CEO, Michael Saylor, has been an outspoken advocate of the benefits of Bitcoin over the last few years; his company has been accumulating Bitcoin since early 2020, having accumulated a total of 129,218 Bitcoins as of April 6, 2022.
Tesla also began acquiring Bitcoin to hold on its balance sheet back in 2021, when the company purchased $1.5 billion worth of Bitcoin. Tesla had originally planned to accept Bitcoin as a payment method for its electric vehicles, however, this has not yet materialized.
With Bitcoin’s potential to revolutionize the future of finance and payment processing, there is a massive potential upside to positioning your business properly early on. If you can establish your company as being Bitcoin-friendly, you can likely capture the market share that your competition has left on the table.