Bitcoins have garnered big press lately. And why not? They are a digital way for people and businesses to pay one another over the internet. As Entrepreneur Magazine details in a recent story, these virtual coins are traded between individuals online without any trace being created. These virtual coins also don’t go through any banks or financial institutions. And this raises the big question: Should your business accept Bitcoin payments? Here, according to Entrepreneur, are the big questions you may have regarding this virtual currency.
What are they?
Individuals purchase Bitcoins with actual money. Then they use these virtual coins to purchase goods and services from online companies. Many companies that work with Bitcoins arenâ€™t quite legal. Even so, lots of others are. Entrepreneur states that such online vendors as Etsy, WordPress and Reddit accept Bitcoins.
Bitcoin transactions are secured by way of a process called public key cryptography encryption, according to Entrepreneur. That does not mean, however, that all Bitcoin transactions are completely safe. Cybercriminals, especially clever ones, can hack Bitcoins. Additionally, there is Bitcoin-stealing malware to be concerned with.
Why take them?
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 advantages, too, to this virtual currency. Bitcoin transactions – currently – are not taxed. On top of that, there are no fees or charges from banks, credit cards or financial institutions connected with such transactions.