Small business owners always need cash. They are always trying to find new revenue streams, especially when they are looking to launch a new product or spend money for marketing or business planning. While most companies have investments, Bitcoin investing is relatively new. Here are some ways it could benefit your business.
- Lower Inflation Risk — As business owners, you know that when prices increase, you have to purchase fewer supplies. The same is true for investments that are tied to inflation. For example, if you buy stocks that are volatile because the country suddenly enters inflationary period, you will lose money. With Bitcoin investments, you have a lower inflation risk. All world currencies are controlled by governments. When a currency loses value, its purchasing power goes down and leads to paying more money to acquire the products. It becomes like a tax. With Bitcoin, the system is infinite and therefore no need to worry of the money getting finished. By the year 2050, it is estimated that there will be in circulation one Bitcoin to cater for 500 people globally.
- Lower Business Risk — Those who invest in Bitcoin claim to take a lower risk compared to those investing in world currencies. Bitcoin is a world currency that doesn’t not depend on governments’ policies. This is good news for business owners. They won’t have to lose as much of their capital and hard-earned money.
- Cheap Investment — Small business owners watch every dollar they spend. Therefore, they don’t want to spend a lot for investments. Bitcoin transactions are safe, easy to do and inexpensive. Because the buyers cannot get their money back after purchase, they will know the sellers will ship the product or service without worry of recovery. From the buyer’s perspective the infrastructure for payments and sending money between accounts is potentially going to be simpler and cheaper because it is peer-to-peer rather than done through some intermediary. This makes the transaction more palpable.
- Easy to Carry — Unlike cash, you don’t have to carry around large amounts of Bitcoins. Business owners often don’t have a lot of cash on hand to carry. Bitcoin investors prefer it to other currencies. Business owners can easily carry around a million dollars’ worth of Bitcoin in a memory card.
- Reduces Taxable Income — When you invest in Bitcoin, you don’t have a paper trail. Therefore, you won’t have to report as much in income to the IRS. The government will not be able to trace the source of your funds.
How to Invest in Bitcoin
Small business owners who are curious about how it works should do their homework and understand the investment. When they master Bitcoin investing, they could increase their cash flow considerably. Here are some tips for investing in Bitcoins.
- Get a Bitcoin wallet on Coinbase, Blockchain or LocalBitcoin.
- Find out the current price for Bitcoin market. Small business owners can use a Bitcoin calculator provided on these investment sites.
- Figure out how much you want to risk for your investment in Bitcoin
- Use credit card, check card or bank account to buy Bitcoin from sellers on Coinbase.
While it may not be advisable to put all your financial investment in Bitcoin, it is indeed well worth trying. Business owners who have become successful through this investment strategy can provide more tips for you. So, ask colleagues and get a better sense for this type of investment. Do your homework and ask questions.
Despite the advantages to business owners, Bitcoin investing does come with some disadvantages. If you lose your memory card, you lose all the money on it. There is no mechanism for lost or stolen Bitcoin cards. It’s hard to trade and is still new. The fact that the government can’t trace it also makes it attractive to criminals. Bitcoin is not accepted everywhere. They are increasing in price too fast. It’s likely that the price will stabilize at around $10 from the current $200. Currently the price is going up so fast that shop owners would have to adjust their prices almost daily if they wanted to accept Bitcoins, which can cause problems for business owners.
Usman Raza is a marketing specialist at Crawford and O’Brien and Headset Zone. Aside from doing dental SEO and helping dentists get new patients, when not working there is a 99% chance he is praying with his family. Follow him on Facebook @usmanraza40 and Twitter @usmanintrotech