Bitcoin is a cryptocurrency that has become so popular to the point where many business people are now wondering how they can integrate this new kind of money into their own companies. But, before you can start using Bitcoin for your business, you need to understand it well first. So, if you are a starter, get to know Bitcoin a bit more intimately by reading below.
How Does Bitcoin Work?
Bitcoin is a new kind of money, but it functions as a form of software. It is the original form of cryptocurrency and was the brainchild of a certain Satoshi Nakamoto back in 2009. Bitcoins have been followed by Altcoins, which are Bitcoins that have been amended into new forms of cryptocurrency. Because it is a software, Bitcoin is traded in an encrypted form.
One great thing about Bitcoin is that it is very democratic and does not discriminate against anyone, which simply means that anyone with a fast computer and great Internet access can participate in its trade. It is considered a decentralized system or network, so no single party can control it. This makes it very different from real money, like US dollars, which are controlled by each country’s central bank.
Real money can be stolen easily, but fans of Bitcoin point out that no one can steal your Bitcoin unless they break the encryption, steal your security keys, or unlock your cryptocurrency ledger.
How To Buy Bitcoin
If you want to learn how to buy Bitcoin, you will need to make a bitcoin address. This is relatively quick because there is no third party to approve or process your application. You should also buy yourself the necessary hardware, if you don’t have it yet. This means buying a high-end computer with fast processing speed, coupled with an Internet access that is equally fast. You should also have a ledger where you’ll store your Bitcoin purchases.
Ways That Bitcoin May Impact Your Business
1. You May Eventually Use It For Business Transactions
Right now, banks and central banks throughout the world are viewing Bitcoin transactions with caution, although many individuals and companies are already preparing to join Bitcoin trading.
One way you may eventually use Bitcoin is to buy or sell products or services since it is basically a form of money. The principle behind it is that you are already regularly using debit cards and credit cards for digital transactions because there are safety features in each card, with each merchant, and with banking transactions. So, using Bitcoins is just a step forward in the same direction as these cards.
2. You May Opt To Specialize In Bitcoin Payment System
Since many people are unsure about Bitcoin use and how they can use it to their advantage, your business could expand to offering Bitcoin as a payment system in real time. You would need to educate your market, so there is a risk that your market would refrain from adopting Bitcoin as fast as you would want them to be. Take note that your business would need to have the digital infrastructure to be able to make this system work. The benefit is that if the public associates Bitcoin trade with your brand, then you are at an advantage and can benefit from serving as an alternative payment network.
3. You Can Choose How Big Each Bitcoin Transaction Will Be
Since Bitcoin is an encrypted software, there is very little difference between the major transactions and the minor transactions, aside from the number of place value you name for the transaction. For example, you can trade $100 worth of Bitcoins or, say, $100,000, and the transaction cost remains the same. So, as you gain confidence in doing trades of smaller values, you can eventually be bolder by accepting major trades, which might involve hundreds of thousands of dollars.
4. You Should Be Ready To Guard Your Business Against Hackers
Most people involved in Bitcoin technology will agree that there is opportunity for hackers to break through the encryption technology for each transaction. The possibility might be as low as 2%, but it is still a possibility. Just as hackers are able to break through website firewalls and steal money, hackers can also theoretically perform a heist of Bitcoins. This is why some analysts may recommend removing your Bitcoins from the trade exchange as soon as trade has culminated, such as storing your Bitcoins in a safe ledger so that there is literally nothing that hackers can get from the exchange itself. Security is paramount if you want to take your business into the Bitcoin universe.