Cooperatize: Why We Accept Bitcoin

While you might not have heard about before, they recently had a piece in Forbes magazine online that outlines the various reasons that they decided to start using Bitcoin to pay their contributors. We’re going to take a look at the reasons they give for using Bitcoin because they make a lot of sense no matter what type of business you’re running in the modern world.

Why to Use Bitcoin

Here’s a breakdown of the reasons gave recently for both accepting payments via Bitcoin as well as paying their writers with the same.

  • Lower Transaction Costs – If you take a look at Paypal, they have a minimum transaction fee of $0.30 and usually much higher. This has made it impossible for micropayments to evolve – something that could help a lot of publishers online. Bitcoin was created with micropayments in mind and may be one of the most viable options when it comes to these types of small payments.
  • Theoretically less risky – While you may question this with news in recent weeks, overall the Bitcoin network is less risky than traditional currencies in many ways. For example, Bitcoin isn’t tied to any single country. Because control of the Bitcoin network is decentralized, there’s less of a risk that some politician or leader is going to suddenly decide that bitcoins are illegal.
  • Security of Identity – Unlike the problems Target has been having with stolen customer information – like credit card numbers and more – Bitcoin doesn’t leave an electronic paper trail for crooks and bad guys to follow. With Bitcoin, however, you do have a public ledger which means that most of the time it’s impossible to double-dip or try to receive a payment twice or more for the same request. You also have the benefit of there being no chargebacks with Bitcoin. Once a transaction is complete, it’s set in stone in the master chain of Bitcoin transactions.
  • Marketing and Publicity – Some might brush this benefit off, but it’s one that can really help a company that might need a little push in a positive direction. With all the media attention that Bitcoin has been getting recently – positive and negative – it’s good marketing to tie into that publicity. Companies large and small can expect to get a little marketing boost when they tie their brand to Bitcoin. This may change in the future, but for now the added publicity you can get by being associated with Bitcoin is a good idea.
  • The Bitcoin Protocol – The last reason they gave for using Bitcoin was the protocol behind it. Particularly, they talk about the fact that there’s the possibility of colored bitcoins that can represent a field with information. This could be used to only allow the bitcoins that are colored a certain color to be used for a specific purpose – like loyalty points that can be spent at a particular business. This may be far off from the current state of the Bitcoin network, but the possibility is another reason Bitcoin is so bright for and many others.

Looking at the list above, it’s easy to see that the reasons outlined are going to be useful for many other people and businesses as well. If you haven’t done it yet, it’s a good idea to take some time and sit down and decide for yourself whether or not Bitcoin makes sense.

To really understand Bitcoin and the possibilities, you need to peer into the future. While most people go to stores in the physical world to purchase physical goods with physical currency, there’s a good chance that in the future it will become possible to use virtual currency – like Bitcoin – to purchase designs to be printed out at home on a 3D printer.

And that’s only the tip of the iceberg when it comes to the possibilities offered by Bitcoin and other cryptocurrencies. While a lot of issues still need to be worked out – especially some legal aspects around the world – the time to jump in is now if you want to be one of the first before the “Bitcoin Gold Rush” occurs.

If you’re sitting on the fence about whether or not to get started with Bitcoin investments or using it to accept payments online, leave a comment explaining your position and any possible hesitation. A lot of people fear change, but when you’re able to publicly talk about it, things usually begin to fall into place.