How Cryptocurrency Is Making a Difference for Local Small Business Owners

Cryptocurrency is a hotly discussed topic in certain circles on the Internet, but until pretty recently, it was confined to that space.

Extremely online people would go back and forth on social media debating the merits of one token or another and dissecting the finer points of blockchain technology, while the rest of the “real world” went on about their business.

But for small businesses, cryptocurrencies present a major opportunity, and some are taking notice. Here are five (mostly positive) ways that Bitcoin and other cryptocurrencies are impacting local businesses.

1. Crypto Can Eliminate Transaction Fees

Credit card companies often charge 2-3% of a total purchase in transaction fees to the merchant for the “privilege” of being paid via their system.

That cuts into small business’ profits in a much more noticeable way than larger companies, and for businesses whose margins are already small, that can spell big trouble for the bottom line.

Bitcoin and other cryptocurrencies, by contrast, have either free transactions or very low fees. That can save businesses a lot of money over time.

2. Small Businesses Can Eliminate Chargebacks

Chargebacks, in which a credit card company or other financial institution reverses payment on a transaction after a dispute, are a major problem for small businesses.

Dissatisfied or disgruntled customers can dispute payments for whatever reason they see fit, and since small businesses usually lack the time or legal resources to defend themselves, they just have to give the money back.

This is costly, especially since there are often additional fees tacked on to the chargeback. Bitcoin eliminates this problem: all transactions are final and can’t be contested.

3. Crypto Makes It Easy for Small Businesses To Accept International Payments

If your local small business provides a special item that’s not available elsewhere, there might be interest from international consumers.

But the difficulty of transferring money across borders can create an impediment to these profit streams.

Since cryptocurrencies are decentralized and not tied to any particular government, you can accept payments in them from other countries without worrying about exchange rates or border restrictions.

4. Crypto Attracts Curious Consumers

For the time being, most small businesses don’t accept cryptocurrency. That means those that do have an opportunity to stand out from the crowd.

Advertising that you accept cryptocurrency will attract clients who otherwise might not be interested in what you’re selling. And if your product is quality, they might just stick around to keep spending their crypto tokens at your establishment!

5. No Wait (Most Of The Time)

While credit card transactions take a while to process, since they need to be checked by a single centralized body, Bitcoin payments are theoretically instantaneous. The reality, though, is that limitations in block size can sometimes create long wait times.

The recent fork that spawned Bitcoin Cash was intended to remedy this problem, so if you’re concerned with getting your money quickly, you might want to accept Bitcoin Cash instead of vanilla Bitcoin.

While many big companies are afraid of what the decentralization that blockchain enables could do to their bottom line, small businesses stand to benefit in a major way from accepting cryptocurrencies.

The above are just a few ways cryptocurrency can change the game for small business owners.

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