The Green Sheet Online Edition

February 14, 2022 • Issue 22:02:01

Readers Speak: Why use bitcoin?

It looks like bitcoin and other cryptocurrencies are here to stay. So far, just one of my merchants has asked about bitcoin payments. I expect interest will grow, but I'm unsure what the advantages to bitcoin really are.

Darius Chandler, Merchant Level Salesperson

Darius,

Thank you for your inquiry. Our two-part feature on cryptocurrency acceptance in this issue (Feb. 14) and our Feb. 28 issue, provides good insights in this topic. Also, JawsTec, a 3D printing service that accepts bitcoin, recently sent us the following four advantages it has found to using bitcoin:

1. Fast transactions: Transactions using bitcoin are significantly faster than standard payment methods. With no intermediaries in the mix, individuals are transferring bitcoins from one digital wallet to another. Bitcoin transactions also do not require verification of a person's identity to complete the transaction which greatly expedites the process.
2. Low fees: Most payment processors charge a 2 to 4 percent transaction fee on all transactions. Because intermediaries are not involved in the exchange of bitcoin, transaction costs can be extremely low. This allows merchants to pass along savings to the consumer.
3. Security: Because bitcoin is completely a digital currency and not physical, it cannot be stolen off of a person. Someone would need to know an individual’s private keys to their wallet for any account to be hacked. It is also impossible for chargeback fraud to occur with bitcoin because transactions are irreversible. Payments are permanent with this system, and a consumer would need to directly contact the business to request a refund.
4. Broader market: With bitcoin not being tied to or backed by any country, government, or financial institution, the high fees and barriers associated with trading internationally are greatly reduced. Bitcoin remains the same value no matter where someone is located. As a result, companies will be able to more easily compete in the global marketplace, especially with the rise in on-demand marketing.

Are your merchants keen on crypto?

Are you prepared to help merchants with cryptocurrency acceptance? If so, what solutions are you offering? If not, why not? Please email your thoughts to greensheet@greensheet.com.

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