The world is currently very bullish on Bitcoin. Major companies such as Tesla and Starbucks have expressed either adding Bitcoin as a reserve asset to their balance sheets or accepting Bitcoin payments from their customers in the near future. With a single Bitcoin being worth around $50,000 USD at the time of writing this blog, more and more companies are asking this question to themselves: “Can I use it for my business?”.

Bitcoin as a Cash Reserve Replacement

One of the simplest ways to “use” Bitcoin for your business is as a store of value. Similar to how companies will hold cash reserves for a future time, your business can start purchasing Bitcoin with the prediction that it’s value will continue to increase over a 3-5 year period. Holding Bitcoin over such a time period, otherwise known as to “HODL Bitcoin”, has proven in the past to be a very successful business decision. However, past performance is not indicative of future results and Bitcoin at any moment can and will fall more than 50%. Bitcoin and cryptocurrency as a whole are incredibly risky assets with powerful potential outcomes. It is important to understand the risks and incorporate a strategy that mitigates volatility risk. Regular purchase times such as every month, every 3 months, etc. will likely result in buying Bitcoin at various prices – leading to a more tolerable average cost.

Bitcoin as a Payment Medium

Allowing your customers to pay via Bitcoin also has its positives and negatives. Businesses will still need to deal with Bitcoin’s volatility as well as its transactional difficulties (high transaction confirmation times, high transaction fees). However, having your business start to accept Bitcoin can open up more opportunities: bringing a passionate crypto audience to your business, allowing orders to be made in more places around the world, and reducing the risk of charge-back scams.

We’d like to help you integrate cryptocurrency into your business. Contact us for a free consultation to discover how!