Wednesday, June 19, 2013

The challenges of Bitcoin payments

Bitcoins are becoming a popular way for individuals to purchase goods and services online. The question, though, is if your business should accept this virtual currency. Entrepreneur Magazine recently took a look at this issue. Here are the key things they discussed about Bitcoins.

Is it real money?

Individuals purchase Bitcoins with actual money. They then start using these virtual coins to purchase goods and services from online companies. Many companies that work with Bitcoins arenĂ¢€™t quite legal. However, lots of others are. Entrepreneur says that such online vendors as Etsy, Wordpress and Reddit accept Bitcoins.

Safety issues

Bitcoin transactions are secured by way of a process called public key cryptography encryption, according to Entrepreneur. That doesn't mean, though, that all Bitcoin transactions are perfectly safe. Cybercriminals, especially clever ones, can hack Bitcoins. Additionally, there is Bitcoin-stealing malware to be concerned with.

Why take them?

As a small business owner, should you accept Bitcoins? You might need to in the future to work with certain online vendors. There are several advantages, too, to this digital currency. Bitcoin transactions - currently - aren't taxed. In addition, there aren't any fees or charges from banks, credit cards or financial institutions involving such transactions.

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