Bitcoins have generated big press lately. And why not? They are a digital means for people and businesses to pay one another over the internet. As Entrepreneur Magazine explains in a newly released story, these virtual coins are traded between individuals online without any trace being remaining. These virtual coins also don’t pass through any banks or financial institutions. And that raises the question: Should your business accept Bitcoin payments? Here, according to Entrepreneur, are the major questions you may have about this virtual currency.
Is it real money?
As Entrepreneur explains, Bitcoins are virtual currency. Individuals purchase them with real money and then exchange them online to purchase products and services from a wide variety of vendors – some reputable, some illegitimate – in the virtual world. According to Entrepreneur, a growing number of reputable vendors – such as Reddit and WordPress – are now accepting these virtual coins.
Businesses do take on a safety risk when they decide to accept Bitcoins. But it’s the same risk they take with all online financial transactions. There’s no guarantee that a cybercriminal won’t hack their Bitcoin transactions. These transactions are encrypted. But that’s not enough to deter the smartest of cybercriminals.
Why would any company choose to accept Bitcoin payments? For starters, these payments come with no credit card or bank transaction fees. Additionally they aren’t subject to taxes. And when more online vendors are accept Bitcoins, it may be a trend you won’t want to miss.