Small Business Tax Center
Small Business Ideas, Grants &
Plans to Start & Run a Business:

Small Business Grants
Network in Cyberschmooz Community Ask Questions Questions and Answers Share Tips Small Business Ideas List Your Business Business Advice from Idea Cafe Experts Coffee Talk with Experts Starting A Business Business Plan Biz Planning | Sample Plans Small Business Ideas Idea Name Your Biz Name Plan Your Biz Plan Financing $ Starting a Business Do It! Running your Business Marketing Tips Promotional Merchandise Marketing Tips Marketing | Sales | Customers Human Resources HR | Employees | Contractors Legal Forms & Tax Information Legal | Biz Forms Managing a Business Managing | Operations
Financing Resources Financing Your Business E Commerce & Webhosting eCommerce Take Out Info Trade Publications FREE Trade Publications Business Books Biz Books Your Own Business Small Business News Small Biz News Gen X Biz Gen X Biz Work at Home Work @ Home Business Information The Fridge - Biz Info on Ice Destress Send Awards Send Awards & Greetings Yoga At Your Desk Yoga @ Your Desk Fun Guide Guide to Find FUN Online About Idea Cafe Press Idea Cafe has received Idea Cafe in the News Idea Cafe's Kudos Kudos for Idea Cafe Advertise on Idea Cafe Advertise on Idea Cafe Privacy Policy Privacy Policy Contact Idea Cafe Contact Idea Cafe Link to Idea Cafe Link to/from Idea Cafe Join Idea Cafe
Search Idea Cafe Site Directory Site Map Online directory to business resources Biz Web Guide

Expert Answers to Biz Questions

Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.

color business bar

This Is How Small Companies Can Profit From Bitcoin Fever


There's a lot of talk these days about crypto coins. Beyond having a purely speculative approach, such as investment, the truth is that bitcoin in the company can be a very interesting financial tool to streamline certain transactions. In fact, the technology behind bitcoin, called blockchain, is allowing large financial institutions (but not just them) to explore how they can take advantage of these new currencies.


In any case, before deciding to use bitcoins or any other crypto currency, the ideal is to seek good financial advice. It has many advantages that can help us, especially if our company works in sectors such as e-commerce or exports in different countries, but can also pose a financial risk to take into account.


Agility in transactions with the use of bitcoin in the company

When a company works in different markets and operates in several countries, one of the drawbacks it needs to solve is how to move money from one place to another quickly. Financial transfers take time. We can't move money from one country to another immediately, we have to wait two days or more for the money to be available in the destination country. And this is not the case with bitcoin, which is a global currency and is immediately available.


Therefore, the companies that can make the most of this or other crypto currencies are those that export or import products and need to use their financial resources in different continents. But also those that have their business model on the Internet, since payments through bitcoin have a very important security component.


While in a bank someone can make a payment and then revoke it or say that he has not done so, with bitcoin you do not have that problem. In addition, you cannot issue a payment if there are not enough bitcoins in your account. Companies have the guarantee that they will collect the payments they make with the crypto currencies says


In addition, transaction errors are reduced. This means that we do not have to be prepared for any eventuality, that the money does not arrive or that we have to repeat the operation because it has not happened. With crypto currencies, all transactions are recorded and your decentralized network is prepared to maintain a stable structure that does not depend on four or five important nodes.


Lower commission costs

For the financial directors of the companies, the costs of carrying out an operation are very important. Moving money from one country to another, converting it from one currency to another can lead to significant commission or financial costs.  With bitcoin and crypto currencies, the cost is zero. 


This makes many companies consider working with this type of global currency, which can move freely from one country to another, which can be used anywhere, which is increasingly accepted to make payments in more places and facilitates the international growth of the company. 


Attract new customers 

But it can also help attract new customers.  We're experiencing a bitcoin fever, as evidenced by media coverage of it or by more than one conversation during past Christmas meals revolving around its possibilities.  It is a fact that more and more people are buying crypto coins and that our company accepts payments in bitcoins can be a way to win new customers. 


Also to be ahead of the competition or associate the image of our company to a technology, an image of innovation that nowadays can be a good solution to capture clients or to be able to offer better prices, being more competitive. 


Volatility, the risk of cryptomoney

But the use of bitcoin in the company also has its risks.  The volatility of the currency, with very important rises but also vertiginous falls, can be a problem.  The truth is that bitcoin has risen by 1,400% in one year and that the shadow of the bubble has long hovered over the cryptomedas. 


This means that, in many cases, cost savings, agility or security take second place, especially for companies that do not want to risk part of their capital.  In addition, while in a traditional exchange transaction you can take out exchange hedge insurance, with the cryptomime, its volatility is a brake on this type of insurance. 


Finally, it should be noted that bitcoin transactions are anonymous transactions.  This is an advantage for many companies, as the identity of the parties involved in a transaction is not revealed.  In fact, central banks do not regulate bitcoin, which can pose a risk for many companies.


Now it is up to each of them to decide whether they operate with these currencies and how much of their financial resources they allocate to it. An investment at the right time can be very successful. However, if money is needed in the short term, losses can result from the volatility of its value.


Small Business Tax CenterIdea Cafe HomeSign UpBiz Grant CenterCyberSchmoozCoffee Talk with ExpertsPeople in Biz ProfilesStarting Your BizBiz PlanningRunning Your BizFREE Trade PublicationsMarketingFinancing Your BizHuman ResourcesLegal & Biz FormsManaging Your BizeCommerceYou and Your BizGen XWork@HomeThe FridgeDe-StressSend an AwardSend an eGreetingYoga @ Your DeskWeb GuideIdea Cafe in the NewsAbout Idea CafeAdvertise on Idea CafeContact UsPrivacy PolicySite MapSmall Biz News

Copyright 1995-2020, Idea Cafe Inc. Downloads are for personal use only, not for resale to others, and may not be reprinted in any form without written permission from Idea Cafe Inc.

DISCLAIMER: We hope whatever you find on this site is helpful, but be cautioned that it may not apply to your own situation, or be totally current at any given time. Idea Cafe Inc. and all of its current and past experts, sponsors, advertisers, agents, contractors and advisors disclaim all warranties with regard to anything found anywhere on this family of websites, quoted from, or sent from Idea Cafe. and its related sites, publications and companies. We also take no responsibility for comments published by others on these pages.

TRADEMARKS: The following are Registered Trademarks or Servicemarks of DevStart, Inc.: Idea Cafe®, Online Coffee Break®, The Small Business Gathering Place®, Take out Info®, Biz Bar & Grill®, Complaint-O-Meter®, A Fun Approach to Serious Business™, CyberSchmooz™, and BizCafe™.