Bitcoin, virtual currency, has awesome potential. It’s used by people to buy and sell all over the world. It’s great, however, it’s fraught with problems. One of the biggest Bitcoin exchanges Mt. Gox, shut down, and U.S. regulators are still figuring out how to deal with Bitcoin.
I could go on but my advice for small business owners is not to jump on every wagon that comes by, filled with new technology that’s not matured and that hasn’t been proven by the market – especially if you have a lot to lose. Brent Leary spoke about this on an episode of The 3TechGuys Show.
Some of you might want to test accepting Bitcoin. That’s fine – if you are testing it with a small amount of money that you can afford to lose.
We have seen, and we will continue to see, the coming and going of lots of new, upgraded and different technology. This is good (thank you iPhone, Netflix, search engines and Shark Tank). My caution to you is to not base your business on new technology. When things don’t work out – then you’re business is in jeopardy.
Always start small and test:
- If you hear lots of customers talking about using the new technology – listen up.
- Watch what your competitors are, and are not, doing.
- See what main stream media has to say: Small Business Trends, OPEN Forum, Big Ideas Blog, Inc.com, Entrepreneur.com, Wall Street Journal, NY Times, Atlanta Tribune and other publishers.
- Test the new technology with friends and long time, loyal customers – let them know it’s a test.
Focus on loving your customers, creating a great website, investing in social media and building your business.
Let other people test new technology – but keep your eyes open.
Republished by permission. Original here.
Bitcoin Photo via Shutterstock
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Businesses can sign up with services like BitPay that immediately converts into legal tender. Since there are no chargebacks the funds are deposited in your account the next day and the fees are significantly lower than other methods. It is similar to accepting Paypal and there is no real risk if you convert like this.
It may not be good as a currency but it is good for investments. I am currently investing in this one and I managed to make a lot in a matter in two months. It is good money since I am able to make it without lifting a finger.
You can always accept Bitcoin via a system like BitPay (I have no financial interest in them by the way). This would allow you to investigate selling into the Bitcoin marketplace without running any currency conversion risk. Basically, you get a customer who has BTC to spend, but you get paid in fiat currency.
You fail to point out that there’s basically no risk to small businesses who accept bitcoin through a payment processor like Bitpay.com or Coinbase.com. When you use one of those processors, they convert the Bitcoin instantly to dollars if you want, and there is no risk of charge-backs like there are for credit cards. So accepting bitcoin is less risky for small businesses than accepting credit cards and with lower fees as well.
I honestly thought Bitcoin was no more. I thought it had folded. I now understand that it was one of the exchanges that went under, not Bitcoin as a whole.
I’m usually the last to jump on new technology, if ever, so Bitcoin was never really a draw for me.