While Bitcoin also serves as a store of value, it was primarily an alternative transaction currency. The majority of Bitcoin users mainly use it as a means of payment for goods and services. Industry leaders such as Microsoft and Tesla were the first to adopt Bitcoin as payment, but it did not take long before several media to small-scale merchants followed suit.
Today, Bitcoin is the most prominent cryptocurrency, recognised and accepted worldwide. The following article discusses why Bitcoin commands so much love from merchants worldwide.
Increased exposure with fewer risks
Credit cards, debit cards, and other electronic payment systems enable merchants to process payments from customers in different foreign countries. However, such transactions remain subject to various government restrictions and institutional influences. For example, merchants cannot process payments from sanctioned countries.
Besides, governments also limit the transaction volumes that merchants can process in fiat money across their borders. The centralised financial system makes it extremely difficult and expensive for local businesses to expand to foreign markets.
Bitcoin offers an excellent solution because it is a decentralised universal currency. Unlike fiat money transactions, Bitcoin is not subject to political or institutional influences. That enables merchants to transact in foreign markets without the risk of external intervention. Adopting Bitcoin as payment allows merchants to target and attract customers in different global markets.
Prompt and secure payment processing
Thanks to government regulations and institutional bureaucracy, international remittances have been very costly and inefficient. Processing cross-border payments usually take several hours, days, or weeks to complete, impacting huge losses to merchants. Besides, the traditional payment systems also expose merchants to various security risks, including fraud, mainly due to the multiple third parties involved.
No central authority or entity regulates Bitcoin’s usage and circulation. Besides, merchants do not need banks or money processors to send or receive Bitcoin worldwide. All Bitcoin transactions occur on the blockchain, without any intermediary, facilitating prompt payment processing that usually lasts just a few minutes.
Instead of third parties, Bitcoin’s blockchain verifies and validates all transactions on a shared digital ledger. Bitcoin runs on a distributed network with random nodes that make it virtually impossible to manipulate transactions. The Bitcoin ledger is encrypted and irreversible, protecting merchants from fraudulent risks such as double-spending.
Bitcoin also bears lower transaction costs than credit cards, debit cards, and bank transfers. The absence of intermediaries in Bitcoin transactions significantly reduces fees when sending funds globally. Besides, Bitcoin does not have a minimum balance requirement, account maintenance fees, and the many other charges levied by banks and money processors.
Crypto exchanges such as Quantum AI usually charge a small transaction fee for processing payments on behalf of merchants and individuals. They mainly calculate the costs based on transaction volumes. Apart from the low-cost transaction fees, Bitcoin is also not subject to currency conversion fees since merchants can receive and send payments in crypto. Those unique Bitcoin attributes enable merchants to save quite a lot of money in the long term.
Bitcoin has inspired significant technological advancements, helping merchants shift to a more efficient digitised economy. Bitcoin enables merchants to process payments and store their funds virtually, without any paperwork. Its blockchain maintains an accurate record of all transactions that merchants can easily access at their convenience online. Besides, the blockchain also supports the development and improvement of various core business processes such as smart contracts, supply chain management, and inventory management.
Bitcoin offers robust benefits to merchants, including increased exposure, low-cost transactions, secure and prompt payment processing. Its blockchain is a revolutionary technology, helping businesses to discover and improve various processes for long-term growth and sustainability.
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