Cryptocurrency is becoming increasingly prevalent in the world of financial transactions. Many readers may feel that they lack a comprehensive understanding of Bitcoin and may be unsure if they should implement Bitcoin onto their website hosted on their dedicated hosting server. In the following article, we will explore the question, looking at some benefits and specificity of using Bitcoin.
What Is Bitcoin
Bitcoin is a decentralized digital currency that is based on blockchain technology. Bitcoin transactions are performed electronically between users without the need for a central authority. Transactions are listed on a platform, the Blockchain. Bitcoin was created in 2009 by an individual or group of individuals under the pseudonym Satoshi Nakamoto. It is the first and most widely-used cryptocurrency, and its success has led to the development of thousands of other digital currencies. Bitcoin can be used to purchase goods and services online, or it can be converted to fiat currency and used in traditional brick-and-mortar stores. Nowadays it is becoming more and more popular as paying method as it gives you a range of benefits that have never been present with fiat currency.
Bitcoin is something you should consider supporting on your website via a dedicated hosting server.
Reasons To Use Bitcoin
Lower Fees
Cost efficiency is the first reason to choose Bitcoin as the payment method. Bitcoin transactions come with lower fees than credit card transactions often do. This way, while paying with a credit card often involves a fee of 3 or for percent, so for every 1000 dollars you pay from 30 to 40 dollars to financial institutions, Bitcoin does not involve a processing fee, although there is often a 1% fee of the crypto payment gateway.
No Regional Restrictions
Bitcoin makes the payment process a lot easier for international transactions. This is because it has no connections to any country and its financial specifics or the specificity of international transactions. You can attract a broader audience from abroad, making payments easier and more cost-efficient.
No Chargebacks Or Disputes
Using Bitcoin as a form of payment can have fewer complications, as it does not involve the same contractual obligations as credit card payments. In this way, merchants are not subject to costly chargeback fees, which can sometimes reach as high as 25%, and there are no disputes to worry about. If a customer asks for a refund, it must be performed manually as a new Bitcoin transaction. On the one hand, it allows the merchant to be more aware of the transactions going on in their business. On the other hand, however, it requires more manual work from you or your employees.
Better Payment Security
Cryptocurrency is generally much less susceptible to various frauds that can, unfortunately, take place with credit cards. On the one hand, this is because crypto transactions don’t need to be processed by any third-party service. On the other hand, there is no single place to store the information on banking accounts. In the case of credit cards, such hubs are vulnerable. This can lead to a data breach and the misuse of credit card information of hundreds of accounts.
In the case of Bitcoin, the information isn’t stored at some on-site place, but in the customer’s crypto wallet. The wallet itself is secured by the blockchain. Moreover, if we consider privacy, paying with Bitcoin is anonymous as it doesn’t involve your personal information, which means one less thing to be used in a wrong way if something goes wrong.
Bitcoin Is The Future
This phrase may sound a bit pretentious, but there is truth in it. We don’t know exactly what the future of Bitcoin is and this world in general. However, there is a general trend of Bitcoin being used by more and more modern companies. Starting to use it right now may not give immediate gains to your current business, but there is a high chance of profits later on, as the technology permeates the different spheres of our life even more. Therefore it will be a wise choice to start using Bitcoin as a payment method right now, developing awareness about it and exploring which benefits it can give you today and in the future.
Things To Be Aware Of
There are numerous advantages to using Bitcoin. However, its involvement needs more background knowledge from the user. Also, it has a couple of pitfalls that make things a bit more complicated.
Since Bitcoin is based on a decentralized system and there is no man in charge, unlike credit card banking services, there will be no support in case something goes wrong.
Bitcoin can be compared to cash, so payments with it are mostly unidirectional and irreversible. This gives the customers a guarantee for cashback in fewer cases. Therefore a customer needs to have more trust in the merchant.
Also, the legal status of Bitcoin is disputable in certain areas. So you’ll have to study this question to use Bitcoin successfully and without complications.
Summing up
With this in mind, Bitcoin is a tool that is an efficient alternative to fiat currency. This is due to it having various specific usage cases where it’s more secure, cost-efficient, private, and convenient than traditional payment methods. For this reason, creating the possibility of paying with Bitcoin on your website will open a lot of new ways for your business to develop. Also, it can make your services accessible to a broader variety of customers. Thank you for reading!
