Bitcoin has become the caceoethes of the technology organism and also a matter of contention of late. Prior to that, it made some people millionaires. In the evolution of technology, we find elements that help technology evolve to the next step, as in the evolution of living organisms.
Bitcoin is one such step in the evolution of technology. When a technology eliminates the limitations of its previous forms, the new technology gets favored. That’s why accepting Bitcoin in businesses can be more beneficial and profitable than using conventional banking systems. So, let’s see the steps and ways through which businesses can start accepting bitcoins for their businesses:
1. Legality of Bitcoins
Many countries have had mixed opinions on Bitcoin. Some of them went to the extent of banning bitcoins outright, while in some other countries, it is either illegal or regulated. Bitlegal is a great place to learn the legal status of Bitcoin in each country.
The ban may extend to almost all sorts of cryptocurrencies, except those approved by the local governments for use. The first step in accepting bitcoin is to be aware of all the legal aspects of bitcoin in your country with the help of a certified legal professional.
2. Wallet or Payment Gateway
First up, you need a Bitcoin wallet that you can sign up with blockchain.info, BitPay, Coinbase, etc. You can accept Bitcoin through these wallets, once you have an account. The wallet doesn’t store bitcoins but consists of a “public key”, which you send to receive bitcoins, and usually a secret private key, through which you send bitcoins. The public and private keys are just mathematical algorithms that entitle you to the number of bitcoins you own.
A small business can receive or accept bitcoins through a simple wallet registered in the name of the private business owner himself. Large businesses may need a payment processor, which is the equivalent of a payment gateway service to accept bitcoins.
BitPay Coinbase, Blockchain.info are some of the best payment processor or payment gateway services for bitcoins. If you lean a bit towards fiat currency or are risk averse, you can also instantaneously liquidate your bitcoins to cash them with these services.
3. Bitcoin POS Systems
Point-Of-Sale Systems are crucial for any business. For Bitcoins too, you can use Point-Of-Sale hardware at your brick-and-mortar stores to accept Bitcoin payments from your walk-in customers. Almost all retail businesses as restaurants, cafes and bars can use physical bitcoin Point-Of-Sale machines.
Things are getting easier, as people can pay using their mobile phones, bitcoin wallets, scanning QR codes, etc. These days, transactions happen at lightning speeds. The sooner a transaction happens, the better. Conversion rates are higher, if transactions happen as fast as they can. BitPay, Coinbase and Coinify are some of the services that provide POS terminals for brick-and-mortar stores.
4. Let Your Customers Know
Bitcoin is represented by a symbol or icon that looks similar to dollars, pounds or any other fiat currency. If you own an online store, just have it flash alongside your other payment processor icons. If you are running a brick-and-mortar store, paste the symbol prominently, where it could be highly visible to your incoming customers.
Accepting bitcoins can be an instant attraction for your business. Not only for B2C businesses, it is an attractive option, even in B2B businesses. Receiving money through the medium or mode people find easy, attractive, interesting and exciting can help close a sale a lot easier.
5. Keeping Up with Tax Laws
Proper accounting and abiding by your tax laws completes your legal adherence to the use of bitcoins. You have to ensure whether accepting bitcoins is legal or illegal in your locality, before you start accepting bitcoins. Once you find it legal and set yourself up to receive bitcoins, proper accounting and paying taxes legally due is as mandatory as ensuring legality.
There, really, are discrepancies between conventional accounting and bitcoin accounting. Unlike fiat currency, Bitcoin’s value changes almost every second with each transaction. So, arriving at a fair value measurement can be difficult and is currently contested.
You also need the expertise of a certified accountant or financial auditor to classify income received through bitcoins. In most countries, it is still debated whether bitcoin can be considered cash, currency, (intangible) asset or inventory.
So, getting through the accounting process with the help of a certified accounting professional and paying taxes regularly are mandatory obligations that need to be met while accepting bitcoins.
Benefits of Using Bitcoins
What Bitcoin did to the world of financial transactions was a colossal disruption in itself. Bitcoin disrupted the existing snail-paced financial systems, ensuring transactions happened real-time across borders.
This kind of laughed in the face of the existing financial system with its centralized controls. Bitcoin became the first decentralized Peer-to-Peer (P2P) cryptocurrency which did not need a Central Bank to function; to get regulated or operated.
Besides the freedom of using a decentralized cryptocurrency, Bitcoin came with the lowest transaction fees, remittable within seconds across borders, zero chargebacks and near foolproof encryption and safety.
So, Bitcoin is the undisputed king of the virtual, digital or cryptocurrency world that offers immense benefits to businesses and individuals alike. That’s what makes virtual organisms consider Bitcoin an important milestone in the evolution of technology.
Setting up to receive and accept bitcoin payments is a highly technical and nuanced task with a lot of legal and ethical considerations. Get expert advice from us by visiting us at: www.twilightitsolutions.com
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