Should Your Small Business Invest In Bitcoin?

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This isn’t an easy question to answer as there are so many variables that need to be understood. Bitcoin and other cryptocurrencies are now taking on a more mainstream role, but that doesn’t mean that it is a slam dunk when it comes to investing.

It’s clear that Bitcoin and cryptocurrency is not just a fad whose time will be over one day. It is definitely here to stay. There are so many applications besides just trading that make them useful for many businesses and individuals.

With that in mind, it is a good time to think long term and it could find a place in your business’s future. It could be to fund your business like a loan or you could use it to protect your assets.

In this article, I will go over some reasons it may make sense for your business to invest in Bitcoin.

How to Acquire Bitcoin?

Top 20 Bitcoin Wallets

The first thing you need is to acquire a digital wallet. There are two kinds you should have. One will be used to actually buy the Bitcoin and the other, called a cold wallet, basically stores them offline.

Then you’ll go to an exchange where you can buy Bitcoin instantly with debit card, credit card or another cryptocurrency. Once you buy the Bitcoin, you move them to your wallet to keep them safe.

Your digital wallet doesn’t actually store the Bitcoin. It contains a private key that is sort of like having one key to a safe deposit box.

There are public keys for the block where your Bitcoins are actually found. Sort of like the second set of keys the bank has to help you open your safe deposit box.

Now you are free to keep your Bitcoin and let them grow (or depreciate so keep an eye on them), buy other cryptocurrency or sell them off if you need a quick infusion of cash.

3 Reasons Why You Should Invest in Bitcoin

Should Your Small Business Invest In Bitcoin

1# Demand Adds Value

As Bitcoin becomes more widespread in its use, it becomes more valuable. It is true that Bitcoin was fairly volatile but it has become more steady in the last year to year and a half mainly due to the fact that people are actually using it and not just speculating with it.

Now that it can be used to buy goods and services online and even at POS locations like stores, it has become like just about any other currency, except better. There is more safety and convenience when using Bitcoin since it is encrypted on the blockchain.

There is also scarcity built in which will increase its value over time. There is a hard cap of 21 million coins that will be in circulation. And they haven’t all been mined yet. Once they are mined, then expect the value to rise and stay high for quite some time.

When will they be all mined? Nobody knows for sure but each passing year gets us closer to that time.

2# Use It For Business Processes

Having a cache of cryptocurrency like Bitcoin can help to streamline your business practices. The blockchain has a multitude of uses besides just speculating on various alt coins. When you have cryptocurrency for your business, you can unlock a lot of these benefits.

Smart contracts are going to be essential in running your business as time goes on. With the click of a button, and without the use of a middleman, you’ll be able to buy shares, property or services.

You’ll also be able to create immutable contracts with vendors, employees and others and you can protect your intellectual property by making a smart contract on the blockchain so there is a timestamp that cannot be manipulated.

Using the blockchain for these types of business processes is a lot cheaper than they used to be so it can save your business a considerable amount of money.

The process is streamlined which saves time and there are less fees since there are no middlemen like banks or financial institutions.

3# Acquire a Blockchain Based Startup

No matter what industry your company is in, chances are very good that there is a small startup using the blockchain that can benefit your company.

As more and more systems are moving from the cloud to the blockchain for its efficiency and security, there will be more need for your company to also be using it.

Instead of trying to develop your system for use on the blockchain, your company could acquire a startup that can solves two issues.

One, there will be less competition when there are more blockchain based businesses. That startup just starting to crawl now could be a major player later and crowd you out.

It also means you have the foundation of a blockchain business so you don’t have to develop your own. This takes a lot of resources that your company may not be able to do effectively.

This could even be in the form of your very own token or alt-coin. If you have a very user facing company where there is a lot of online interaction with your customers, then your own coin may prove to be very useful for them.

Conclusion

Investing is a fantastic way for a business of any size to stay competitive. While most small businesses might not be thinking about cryptocurrency, this is the best time to be doing so. The future looks bright and mass adoption is not far off.

As a foreign banker, stock trading can be a good way to make a return on your money and if you’re a beginner, InsideBitcoins has a thorough guide about online stock trading.

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Author Bio: Pete McAllister