BITCOIN AS A PAYMENT METHOD
Bitcoin is always known as a great payment method especially for online retailers and also the first popular cryptocoin. Bitcoin transactions are irreversible. That is, if committed there’s no “take back” . It came into existence on 3rd January 2009 by a developer named Satoshi Nakamoto.
For transactions, bank or governing bodies are not needed instead all the transactions are done, recorded and verified by a process called ‘mining’ and that also helps creating more bitcoins. Bitcoins are traded on marketplaces for other currencies and can also be used to purchase items, in which case, the bitcoins are transferred from a personal wallet to a receiving Bitcoin address.
HOW DOES IT WORK :
Bitcoins are like physical gold coins after once you own them . Since they possess value as well as trade you can use them to purchase goods and services online, or you can push them away and hope that their value increases over time.
There exists a personal wallet through which bitcoins are traded from one wallet to another. A wallet is equivalent of a bank account that we store in our gadgets and even on cloud too. There would be a digital wallet in which you can store your money once you have received your payment (A digital wallet refers to an electronic device or online service that allows an individual to make electronic transactions) . If you want to convert your bitcoins into some traditional currency, there are many bitcoin payment processors that provides this option for a 1% of fee.
POTENTIAL ISSUES :
Since Bitcoin is less stable than other currencies so when you’re accepting bitcoins in your business you might face some risks. Market variations or fluctuations may effect your bottom line if you’re accepting bitcoins and you’re converting into a traditional currency straight away , the effect could be better or even worse.
Since its value is increasing really quickly, people are nervous to spend their bitcoins. The future is near when the Bitcoins will soon become an asset and not just a currency.
Although the value of Bitcoin is anything, there still some customers exist who understand its value in a different way and highly rate to be able to pay with it and accepting it can be profitable.