Bitcoin enthusiasts and evangelists are trying to persuade as many companies as possible to start accepting Bitcoin as a payment method for their goods and services. However, most companies are not properly educated on how Bitcoin can be beneficial to them except for financial gain. As a result, some companies are prone to make some horrible mistakes once they get involved in Bitcoin, which we will highlight below.
Using Customer Funds as Your Own
It goes without saying that Bitcoin – just like anything that holds a monetary value – can bring out both the best and worst in people. Once your company starts working with Bitcoin in one way or another, you may very well see a tremendous amount of money flowing to your company. Greed is a basic human emotion, and your company wouldn’t be the first to look at the funds coming in as your own “play money”.
In fact, names such as Butterfly Labs, ASIC Mining Technologies and quite a few others are synonymous with greed bringing out the worst in people. But no matter how you look at it, you are stealing from other people. Even though Bitcoin is a non-refundable currency – which is not even recognized as a currency in most countries to begin with – that doesn’t mean you won’t face severe repercussions once you start siphoning off funds.
Considering the fact that more and more governments are actively looking at ways to both regulate and legislate the Bitcoin ecosystem, those repercussions will only get more severe. You can always try to blame the disappearance of funds on ‘software bugs’ or something similar, but that just won’t fly with the everyday Bitcoin user anymore. It is in the best interests of both yourself and your company to do the honest thing. Getting rich quick is not the way to go, and especially not in the world of Bitcoin.
Negative Stance Towards Bitcoin
There is nothing wrong with being hesitant towards Bitcoin, especially when it comes to the business side of things. Given the current uncertainty regarding regulation and legislation around the world, it’s hard to judge whether Bitcoin will be considered an actual currency or not. And if so, does that mean your business needs to obtain a specific license in order to dell with Bitcoin payments?
But there is a huge difference between being hesitant and taking up a negative stance. Most companies who are openly negative [or even hostile] towards Bitcoin try to make arguments which will hurt their own business in the end. Major credit card companies are a prime example of this, as they keep linking Bitcoin to terrorism, black market deals and whatnot. However, the same traditional payment methods we use now [cash, credit and debit cards] are the ones verified to be linked to terrorism and black market deals.
Needless to say, these credit card companies are threatened by Bitcoin, as this disruptive digital currency aims to cut out intermediary companies such as Visa and Mastercard from the financial ecosystem. Instead of looking at ways to work with Bitcoin, these old-fashion institutions keep badmouthing Bitcoin and making a fool of themselves. Not the best way to present your business to be honest.
Converting all Bitcoin Transactions to Fiat
Let’s assume your company takes the plunge and starts accepting Bitcoin payments. You will most likely sign up with one of the major Bitcoin payment processors such as Coinbase or BitPay, as they offer you the option to convert BTC payments to fiat currency immediately. Not only does this protect your company against the Bitcoin price volatility, but this also means you will get money deposited in your bank account the next business day, instead of waiting 30 days when accepting credit card payments.
Here’s a twist: these Bitcoin payment processors let you convert Bitcoin transactions to fiat currency, but no one says you need to convert the entire amount. Why not keep a portion of each transaction in Bitcoin itself, instead of converting it to USD, EUR or GBP? This way, you not only show true appreciation to the Bitcoin community, but it can even get you some additional profits in the long run if the Bitcoin price goes up.
Paying bills and wages as a company is not an easy task, and all of us in the Bitcoin community understand that. But once you start accepting Bitcoin payments, a company can start pushing their staff and suppliers to also accept Bitcoin payments, thus creating a whole new ecosystem for your company. Bitcoin is not just about money coming in, it’s also about sharing your vision for a better world.