Accepting Bitcoin is a move many businesses are taking. Thousands of companies accept Bitcoin, and recently, many larger ones such as Microsoft began accepting the digital currency. Bitpay serves over 40,000 merchants worldwide, and Coinbase also serves thousands more. Both take care of the overhead technology needed to accept Bitcoin, and also allow the merchant to instantly convert to their country’s currency at the time of purchase, eliminating any risks Bitcoin has on finances, or tax burdens. Even if you’re hesitant towards Bitcoin itself due to Security, volatility, or needing to develop for it, keep in mind Bitpay and Coinbase’s API will take care of it for you, and if you choose to instantly convert to fiat currency, you’re not taking any risk with Bitcoin’s rapidly fluctuating value. The only investment you need to make is the 1-2 hours it takes for your web developer to implement the API into your website’s checkout, link your company’s bank account, and register for an account.
Will Bitcoin Help My Business?
Before accepting Bitcoin, it’s important to consider your target demographic, and how it compares to Bitcoin’s demographic. Bitcoin users may be more likely to buy particular products. If your products are highly desirable to Bitcoin users, you’ll likely see a large increase in sales if you begin accepting Bitcoin, and market it accordingly through social media. For more information, read here.
If your product doesn’t directly interest Bitcoin users, don’t assume its pointless to accept it. It may draw in a new consumer base that had never considered your products before. Bitcoin users love to support merchants that begin accepting Bitcoin, so they may choose to purchase from your store simply because you accept Bitcoin. Even if they don’t have much use for it their selves, they may consider them as gifts for others, or just an extra luxury for themselves that they’ll find a way to appreciate. Contrary to expectations, Overstock reported that the most commonly purchased item with Bitcoin was “sheets”, despite many expecting it to be electronics.
To develop an idea of Bitcoin’s demographic, it may help to understand what Bitcoin is and how it appeals to its users. Bitcoin appeals to the tech-savvy crowd, as it requires a decent amount computer proficiency to use, and extensive knowledge of computer technology to fully comprehend. If you own a technology based store, accepting Bitcoin is almost certainly a good idea. This survey by the Massachusets Division of Banks shows factors that make up the Bitcoin demographic.
Creating a Niche Product
Developing a Niche product, and marketing it to the world in hope of selling it is very difficult. Not only is it hard to find anyone interested in your product, but there’s likely someone that does it better, or at least is better known in the industry. Accepting Bitcoin allows you to step ahead of your competition, and brings to you an additional set of consumers. By bringing attention to your goods or services through an alternative payment method, you may help spread the word of your product, as your new patrons may share it with friends/family that may not use Bitcoin, or even heard of your shop in the past. Bitcoin creates enormous potential for new online startups, by enabling them to reveal their products to a large crowd of cryptocurrency enthusiasts. If you have a quality product that you feel people would like, then Bitcoin may be the catalyst you need to get it rolling.