Many people perceive Bitcoin as a technology that is highly innovative as well as one that possesses a lot of technology. It is a software that was released in 2009 by Satoshi Nakamoto in the open-source project (Böhme et al.). The question regarding whether Bitcoin is good for business is a significant one, and which ought to be addressed. This paper will look into whether Bitcoin is good in carrying out businesses.
Bitcoin has the lowest fees: The high cryptographic security that Bitcoin has facilitates its processing of transactions in an effective as well as an inexpensive way. This feature of Bitcoin is good for business as it helps in protecting sellers of commodities. For instance, it is possible for a customer to make payments through the Bitcoin’s network without any fees being charged. Nevertheless, even though the fees are not stringently required, they are recommended for a fast confirmation of a given transaction (Guttmann 12).
Bitcoin offers protection against fraud. Unlike other methods of payment like credit cards or PayPal that come with the problem of fee reversal, Bitcoin offers protection against any possible fraud. Chargeback frauds lead to a limited market reach as well as increased prices that in turn penalizes clients. Bitcoin payments are good for business as they are both irreversible as well as secure, implying that the fraud cost is not pushed onto the merchants.
Bitcoins provides accounting transparency. Most organizations are needed to provide accounting documents regarding their activity. The use of Bitcoins facilitates one to provide the highest transparency level as one can give information that can be utilized in the verification of balances as well as transactions. Transparency is a significant aspect of the business transactions that people do, and Bitcoin helps in establishing transparency between the buyer and seller. Through Bitcoin, non-profit organizations can as well enable the public to see the amount of donations that they receive.
Bitcoin facilitates fast international payments. Bitcoin is good for business as it can be transferred from Europe to United States in approximately 10 minutes. This is significant in making sure that international business transactions across borders are carried out efficiently devoid of limits, excessive fees, or even delays (Pagliery 43). There is no the conventional three business days wait in Bitcoin, unlike most intermediate banks.
Multi-signature- Bitcoin as well entails a multi-signature characteristic that facilitates Bitcoins to be expended only in case a subset of a group of individuals authorizes a transaction. This feature of the Bitcoin is good for business as it can be utilized by a board of directors in a particular organization to avert any member towards making expenditures devoid of the consent of the rest of the members. The feature as well is significant in the tracing of the member who facilitated every payment (Mölleken).
Nevertheless, there are several risks that are linked with the use of Bitcoins within the business setting (Forrester & Mark 56). For instance, there are a lot of illicit activities that ease the conduct of illicit business activities as the payments made does not provide any personal, as well as business information regarding the owners’ address. Bronleewe asserts that this has given Bitcoin a bad reputation that is unfair.
In conclusion, the benefits of using Bitcoin in conducting business transactions are many in comparison to the risks. As a result, it is recommendable for both businesses as well as individuals to use Bitcoin in business transactions.