Bitcoin is the world’s first cryptocurrency. A person by the pseudonym of Satoshi Nakamoto released a white paper on bitcoin in 2008. Subsequently, a cult of young people started following the currency. One BTC was hardly worth pennies in the early days. People purchased Pizza with bitcoin. But, times have changed now. Bitcoin, nowadays, is worth hundreds of dollars. Moreover, the incorporation of bitcoin in online business is growing with the crypto market boom. Many companies use blockchain for conducting their financial affairs.
Before we get into the benefits of bitcoin in online business. Let’s define this currency and its value first.
What is Bitcoin?
Bitcoin is digital cash, a payment system and a store of value. It is considered an asset class due to divisibility, fungibility and consistent appreciation in price. Unlike the fiat currencies (dollars euros or pounds), no central authority or central bank has control over bitcoin. It is issued on a permissionless system. Anyone from any part of the world can participate in the system by downloading open-source software.
Bitcoin lets users transfer the value across the border without any censorship. It is a fast and secure digital payment system. Every transaction can be verified on the blockchain. Hence, there is no need for legal paperwork or any middleman.
Bitcoin Among the Top Three Biggest Cryptocurrencies
Bitcoin is the parent cryptocurrency. It was launched in 2009. It is among the top three biggest cryptocurrencies in the world. The total market cap of bitcoin is above 1 billion dollars.
Bitcoin’s is popular for its benefits in both the long term and short term. Many investors buy bitcoin and hold on to it for a longer period of time. There is a term for this behaviour known as hodling.
On the other hand, short term trading of BTC is also very common. Traders take advantage of the crypto market volatility. Essentially, the bitcoin price trend has made many individuals millionaires over months. Nonetheless, the opponents of crypto call bitcoin a scam due to these uncertain price movements.
Also Read: Bitcoin; A Store of Value In 2021
Is Bitcoin A Scam or A Bubble?
Short Answer: None.
Bitcoin is neither a bubble nor a scam. If we look at the history of bitcoin, it has been a volatile currency in the crypto market. The price of bitcoin reached $20,0000 in 2017. It was all over the news following this price surge. However, within months the price of bitcoin fell again.
The notorious fall of BTC in March 2020 gave opponents a chance to point at the fragility of the crypto market. This claim is substantiated by the fact that there is no intrinsic value of bitcoin cryptocurrency.
Bitcoin does lack intrinsic value. Additionally, its price is too volatile because of a fewer number of investors. But, calling bitcoin a scam is a bit too far.
The bitcoin price has always kept some gains after every bull run. It never went to zero despite the outcry. Besides, governmental institutions and the traditional banking system are gradually embracing cryptocurrency. It is going beyond being a cult currency.
‘Bitcoin bubble‘ is another term used in anti-crypto circles. The argument is that bitcoin is a mania driven asset. Its price surge is based on speculations. Furthermore, the bitcoin bubble is inflating because of a billionaire induced pump.
Notwithstanding, bitcoin has been trashed by many billionaires like Bill Gates. Its proponents call it the ‘digital gold‘ and ‘currency of the people‘. Moreover, the price soars when people invest in bitcoin considering it a hedge against inflation.
Is Bitcoin Booming In Crypto Market?
Bitcoin boom in the crypto market is here already. The bitcoin investments are soaring, with both individual investors and institutions jumping on the crypto bandwagon. We are ushering into an age of bitcoin.
The coronavirus pandemic in 2020 spurred the growth of the crypto market. In the face of nosediving global economy, traditional investors looked towards bitcoin and cryptocurrency as an alternative.
Companies like Tesla, MicroStrategy Inc. and Square Inc. have bought bitcoin worth millions of dollars. The financial services company MasterCard has also announced plans of incorporating crypto-related services by the end of this year. Furthermore, Goldman Sachs is launching crypto trading operations this month after Bitcoin’s price surge.
Is Bitcoin Good For Online Business:
Bitcoin is a popular currency available for purchase on exchanges, ATMs and other platforms. Businesses can use bitcoin for transactions as well as use the blockchain system for maintaining records.
Here are the top 3 ways of integrating bitcoin in online business.
Bitcoin allows fast and hassle-free transactions. Employers can use bitcoin in online business to send salaries to their employees. The transactions are completed within minutes. Moreover, business owners can also receive payment from customers in bitcoin.
The internet-based financial transaction is more convenient for both parties. Money can reach across the border in real-time. Furthermore, the fee for the transaction is low in comparison to other financial processing systems.
Storage of Funds:
Bitcoin wallet app allows users to store funds their funds in safekeeping. Online Business owners can receive funds easily in the bitcoin wallet app. The currency is accessible to users at all times. Besides, the wallet app does excellent management of funds. It reduces the chances of errors in the calculations. Hence, your time and energies are saved.
You can create a back up of transaction information over the internet through the wallet app. This way, you can minimize the risk of losing transaction-related data.
Incorporation Of Blockchain Technology
Businesses can incorporate blockchain technology and create their own cryptocurrency. Blockchain is an open, decentralized and distributed ledger. It uses the system of verification rather than trust. Online businesses can digitalize their payment structure and financial management with it. Additionally, you can better allocate revenue and financial resources.
The risk of fraud is eliminated by the use of blockchain technology. You can verify every transaction and there is no need for lawyers of the middleman.
How Online Businesses Perform With Inclusion Of Bitcoin?
Bitcoin has increased gradually over the years. Analysts believe that it will keep performing well in future. Thus, the company receiving bitcoin keeps growing its asset base.
Online Business with bitcoin have following advantages.
- There is no fee for receiving bitcoin. Besides, you can send bitcoin at a minimal fee.
- Bitcoin in online business gives the system protection against frauds.
- Fast payment across the globe.
- You don’t need any security check for sending or receiving BTC.
- Companies using bitcoins become more visible in the crypto market.
- There is a feature of multi-signature. It means that a bitcoin is spent only after authorizations. Thus the business owner can keep the expenditures in his own hands.
Risks Attached With Use of Bitcoin In Online Business:
Investing in bitcoin and using them for your online business isn’t a happily ever after affair. There are risks attached to the incorporation of BTC in the business as well.
- Hard To Understand:
Blockchain is complex technology. It is still a novice and not many people in the tech industry understand its functioning. Besides, the conservative groups are often sceptical of an open, permissionless payment system.
2. Too Volatile:
Bitcoin is a volatile cryptocurrency. The slightest changes in the behaviour of crypto market investors make the price of bitcoin fluctuate. Thus, it is hard to translate the value of your services into bitcoin.
3. Legislative Issues:
Cryptocurrency is still suspiciously looked at by governments in certain countries. Hence, companies usually refrain from making it a part of their financial system
Read More: 7 Common Bitcoin Scams and How to Avoid Them
Why Your Online Business Should Invest In Bitcoin in 2021?
The crypto market has already taken the world by storm in 2021. It is expanding at a fast pace. As an online business owner, it is the best time for you to start investing in bitcoin.
As a first step, educate your self on the crypto market. Understand the concept of blockchain and how you can create smart contracts on the blockchain. Incorporate it into your business by making the changes in payment systems and service delivery.
Investing in bitcoin in 2021 is great for both the long term and short term gains. It can prove to be an asset as well as a quick payment alternative to the credit card system.
Bitcoin can help online business grow in a multitude of ways. It offers efficient services and is very popular among blockchain enthusiasts. The terms of ‘bitcoin bubble‘ and ‘bitcoin scam‘ will disappear from the stage with the maturity of the crypto market. Hence, online businesses should prepare for investing in bitcoin in 2021.