The Buzz About Bitcoin: What You Need to Know

We’ve all heard the buzz about Bitcoin. Whether it was from your friends who decided to invest in it early, or on television as the news covered its historic growth in value, many business owners are still left in the dark about cryptocurrency. Here are a few things you need to know if you are just getting started.

Fee Structures

When dealing in cryptocurrency, the first order of business is to designate a wallet. There are dozens of organizations, much like local investment banks, that would like to earn your business. These act as the platforms that you use to buy and sell the currency. Generally, they make their profits off of transaction fees that they charge on top of your ventures. The key to remember here is that every wallet has its own set of benefits and associated fee structures, giving an investor the autonomy to pick and choose the right wallet for its needs. This flexibility may come as a surprise to many, but it is one of the driving reasons why Bitcoin has been adaptable worldwide.

Fraud Protection

One of the top questions people ask centers around Bitcoin’s dependability. Is this cryptocurrency secure, and if so, how? Unlike credit cards or PayPal payments, when can be susceptible to chargeback fraud as a result of payment reversals, Bitcoin has come up with a creative way to address the issue. The way the currency is structured actually prevents fraud because payments are irreversible and secure, as there is full transparency within each transaction. The only piece that companies need to worry about is having strong protections against hackers attempting to gain access to passwords affiliated with the wallet account.

International Payments

One of the qualities that make Bitcoin so enticing is its ability to facilitate international payments with extreme ease. Because this currency is housed completely on the web, with no centralized banking authority or gatekeeper, it’s incredibly easy to make a payment to another entity abroad. As the site notes, “sending a payment across borders is as easy as sending it across the street.” There is no authority requiring that your balance stay pending for three business days as it gets processed. There are no extra transaction fees, and no minimum spend limitations; which also helps to explain why cryptocurrency is so curious to investors.

We expect that you may have a lot of questions concerning if the move to Bitcoin is right for you and your business. More importantly, the tax implications of buying and selling cryptocurrency like Bitcoin.

If you’d like to learn more, reach out to our team. We’re confident that you’ll leave the conversation better informed than when you entered it. For more knowledge on a breadth of accounting capabilities, read our blog.

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