Businesses need Bitcoin more than Bitcoin needs businesses. Over the last 15 years, the network has rapidly risen from a niche technological experiment to a global settlement layer, sparking further bitcoin adoption.
This decentralized system of value, written off as “dead” hundreds of times, is poised to revolutionize how businesses manage their transactions, protect their profits and create new opportunities for entrepreneurs.
With hundreds of institutions acquiring billions of dollars of the recently launched spot Bitcoin ETFs, the interest in Bitcoin at the organizational level is undeniably growing. This article examines why all businesses – from large companies to smaller mom-and-pop shops – need Bitcoin.
Financial Advantages of Bitcoin
Many of the advantages of Bitcoin arise from the disadvantages inherent to the fiat system.
While intermediaries or brokers have their place in various industries, the number of misappropriated resources in our economies does not lead to greater abundance. One of the many ways Bitcoin resolves this issue is by streamlining payments.
Lower Transaction Fees
Bitcoin’s lower transaction fees are one clear benefit for businesses receiving bitcoin as payment.
While fees on the base layer can fluctuate significantly based on demand, the Lightning Network provides low-cost transactions that can be much less than those from traditional payment processors. Even on-chain payments are not prohibitively expensive for large organizations.
Payments can be settled in minutes or hours rather than days or weeks inherent to current processes, and often for lower cost as well! For a business processing thousands of dollars daily (or more), this fee reduction can result in substantial savings over the long term.
Cross-Border Payments
Bitcoin operates independently from centralized financial institutions, helping businesses reach a global market without worrying about regional financial restrictions or unstable local currencies.
Especially in regions where a significant portion of the population remains unbanked, Bitcoin opens avenues for these individuals to participate in global economics.
Bitcoin’s border-agnostic approach makes it possible for businesses to reach new customers. It also allows individuals to transmit money across borders at very low fees (using scaling solutions such as the Lightning Network) and enables unbanked entrepreneurs to reach global audiences with their products.
| Country | Unbanked/Under-banked |
| Egypt | 67% |
| Philippines | 66% |
| Nigeria | 60% |
| Indonesia | 51% |
| Argentina | 51% |
| Kenya | 44% |
| Brazil | 30% |
| Saudi Arabia | 28% |
| India | 20% |
| China | 20% |
| USA | 7% |
| UK | 4% |
| Germany | 1% |
No Chargebacks And Fraud Reduction
Bitcoin transactions are irreversible – once a transaction is added to the ledger, it cannot be reversed. This irreversibility extends to Lightning as well.
This characteristic significantly reduces fraud and eliminates chargebacks, protecting the seller from financial loss due to fraudulent claims or payment disputes.
Technological Advantages of Bitcoin Adoption
In addition to being a more cost-effective means of payment, there are technological advantages for businesses that use Bitcoin.
Many have experienced the frustration of waiting in a bank line, having an account locked or closed, or waiting days for money to land in their bank account. Again, Bitcoin fixes this.
Speed of Transactions
As mentioned, traditional bank transfers can take days, especially in cross-border transactions. Bitcoin transactions are processed within seconds or minutes. Faster transactions can improve cash flow—a crucial advantage for many businesses.
Recently, I had difficulty paying a freelance editor living in another country. Because my editor lived in a place deemed questionable by either my bank or the payment processors my bank was connected to, one of them decided that the transaction was too dangerous to complete.
Both parties on either side of the deal wanted it to happen, but the intermediaries had the final say.
This situation was frustrating for both of us. My editor’s payment was delayed, and I had to spend longer than I care to admit on the phone trying to resolve the issue.
Unfortunately, my editor doesn’t like Bitcoin yet (hopefully, that will change as he works on more of my podcast interviews!). What could have been resolved instantly over the Lightning Network, took well over a week to complete the payment.
This was not because of the technology but because of the institutions that decided what was a safe way – or not – for me to spend “my” money.
Growth of Savings
Bitcoin makes transactions quick, but it slows the leak of your financial energy.
Whether inflation remains stubbornly high (it will) or goes back down to the 2% target (it won’t), Bitcoin offers the ability to preserve and even grow a business’s profits. In addition to the benefits of accepting bitcoin as payment, bitcoin is also an excellent asset for protecting the value of a business’s treasury.
Using a multi-sig setup, no single person in an organization can run away with the private keys that control a business’s bitcoin. A profitable business that holds bitcoin on its balance sheet over the long term will likely outpace its competitors in that same time frame.
Competitive Advantage
Companies that accept bitcoin are often viewed as modern and adaptable — traits highly valued by customers today.
Offering bitcoin as a payment option can differentiate a business from its rivals and attract consumers looking for companies that align with their values. And if a business pays in bitcoin (either salary or bonuses), this may attract and retain more forward-thinking employees.
Finally, businesses may also gain first-mover advantage in their specific niche within their industry or community.
In a recent interview on Business Bitcoinization, Block Rewards CEO Scott Dedels noted:
“If you’re operating a small or medium-sized enterprise, you do have the flexibility to take a step out and be different and do whatever it is you think is going to benefit your company.”
Business owners who take the time to understand the benefits of a Bitcoin strategy can position their business as a company that accepts bitcoin in their part of the world. This will likely bring in new customers, undoubtedly raising the public’s awareness of Bitcoin.
Conclusion
Bitcoin will not be a silver bullet for your organization’s growth. To quote Jameson Lopp, “Bitcoin isn’t a get rich quick scheme, it’s a ‘don’t get poor slowly’ scheme.”
Bitcoin is available to any business at any time. For those who want to take advantage of easier, quicker, cheaper payments and the ability to accelerate growth by years, if not decades, choose Bitcoin.
The network will continue to grow, but it will be much more advantageous to those who begin learning and implementing it today.
For more Bitcoin and business content, check out the six ways any business can benefit from Bitcoin or listen to “Business Bitcoinization”.
