A recent Entrepreneur Magazine story listed the benefits and possible hazards of taking Bitcoin virtual payments. You’d do well to consider both the rewards and potential problems of accepting these payments that are growing popular on the web.
What are they?
As Entrepreneur explains, Bitcoins are virtual currency. Individuals purchase them with real money and then exchange them online to buy products and services from a wide range of vendors – some reputable, some illegal – in the virtual world. According to Entrepreneur, a growing number of reputable vendors – such as Reddit and WordPress – are accepting these virtual coins.
Like all online transactions, there are safety risks with accepting Bitcoins. These transactions are protected through a process known as 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.
Why take them?
Along with risk, there are some benefits associated with Bitcoins. For starters, it’s a developing trend. Your small business may be required to accept Bitcoins to work with certain online vendors. Secondly, Bitcoins don’t incorporate any fees or charges from banks or other financial institutions. Additionally they aren’t taxed.
Photo credit: Bitcoin by Electric-eye (CC BY 2.0)