Small Businesses and Bitcoin

Hello, I'd like to offer my opinion on bitcoin from a unique perspective. I am starting a small business. We made our first ever sale this week! However, I want to start planning ahead strategically when it comes to customer acquisition, so I've decided to investigate bitcoin.

When I first heard of bitcoin, it was an obscure concept that was mostly considered a way for hackers and drug dealers/sellers to transact with each other. However, it has since become apparent that an efficient universal payment system shouldn't just be left to the rogues of the internet. That's where I come in.

I am excited to bring bitcoin payments into the beginnings of my business. This will give me the opportunity to make international transactions incredibly quickly and cheaply. This aspect of the bitcoin system is what makes it tick in an economic sense. It is far better for me to allow bitcoin transactions, rather than credit cards. The fee is paid by the buyer, and he/she can choose what to pay, so it removes the onus of responsibility for that side of things from me. It also protects me from scams resulting from credit card chargebacks, which means I don't have to have as much fear when reaching into less developed markets. This, in turn allows me as a businessman to be more aggressive.

Another handy feature of offering bitcoin transactions as a small business, is that I reach an entire subculture of potential customers and partners who are already excited to support merchants as a vital part of the community. This means that I will have customers that buy from me only because they pay me in bitcoin. This is certainly a strategic decision that will guide the direction my marketing goes, so I'm excited to take the plunge.

There are two areas that still present challenges and unknowns to businesses when dealing in bitcoins. The first, and most important, is the volatility associated with bitcoin. Unfortunately, volatility is fun for gamblers, but not very good for business. The saying in Finance circles goes, "The market can stay irrational longer than you can stay solvent." Therefore, I have to find a way to keep my bitcoin accounts stable in relation to the currencies that I use for brick and mortar activities (this is still a work in progress).

The second risk is the general discontent that nation-states have with bitcoin. I plan to legally report all income gathered via bitcoin and pay all applicable taxes. However, governments are being proactive about regulating the finance sector to make it hard on bitcoin merchants. If the banks I use wish to discontinue their services because I take nontraditional payment methods, I will have a very messy situation on my hands. However, I have hope that rational regulation can allow legal businesses to use this technology for the good of the economy.

All in all, this is an exciting chapter in my life and I am thrilled to be taking bitcoin along for the ride!