Many people perceive Bitcoin as a technology that ...
Are bitcoins good for business?
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).
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.
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.
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
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.