Bitcoins have garnered big press lately. And why not? They’re a virtual way for people and businesses to pay each other over the internet. As Entrepreneur Magazine explains in a recent story, these virtual coins are traded between individuals online with no trace being left behind. These virtual coins also don’t go through any banks or financial institutions. And that raises the question: Should your business take Bitcoin payments? Here, according to Entrepreneur, are the major questions you’re likely to have about this virtual currency.
What they do
Individuals purchase Bitcoins with real money. They then start using these virtual coins to purchase goods and services from online companies. Many companies that work with Bitcoins aren’t quite legal. However, lots of others are. Entrepreneur states that such online vendors as Etsy, WordPress and Reddit accept Bitcoins.
How safe is it?
Like all online transactions, there are safety risks with accepting Bitcoins. These transactions are protected by way of a process called public key cryptography encryption. That doesn’t mean that savvy criminals can’t hack these transactions. Businesses should be wary of malware that steals Bitcoins.
As a small business owner, is it wise to accept Bitcoins? You may want to in the future to work with certain online vendors. There are some advantages, too, to this online currency. Bitcoin transactions – as of now – aren’t taxed. Moreover, there aren’t any fees or charges from banks, credit cards or financial institutions involving such transactions.