Should your small business accept Bitcoin payments? A recent Entrepreneur Magazine story listed the pros and possible hazards of receiving these virtual payments. You’d be wise to consider the rewards and possible pitfalls of accepting these payments that are growing more popular then ever on the web.
What they do
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 number of vendors - some reputable, some illegal - in the virtual world. According to Entrepreneur, an increasing number of reputable vendors - such as Reddit and WordPress - are accepting these virtual coins.
Like all online transactions, there are safety risks with accepting Bitcoins. These transactions are protected by way of a process called public key cryptography encryption. That doesn’t mean clever criminals can’t hack these transactions. Businesses also need to be wary of malware that steals Bitcoins.
As a small business owner, should you accept Bitcoins? You might need to in the future to do business with certain online vendors. There are some benefits, too, to this digital currency. Bitcoin transactions - currently - aren't taxed. Additionally, there aren't any fees or charges from banks, credit cards or financial institutions associated with such transactions.