Did you know Bitcoin has had 450+ obituaries in the news and counting? The crypto only appeared in 2009, but has been declared worthless more times than we can count. Despite this, Bitcoin has a market cap of $439.58B and is still going strong.
So, what is it that makes Bitcoin so resilient? And will it become commonplace in the near future?
In this article, we will explore the advantages of cryptocurrency payments and why businesses are beginning to accept them.
Pros & cons of accepting cryptocurrency payments
One study found that over a third of American small businesses are already accepting cryptocurrency payments, with another finding 75% of retailers plan to accept BTC and altcoins for goods.
There are a number of benefits to accepting cryptocurrency payments, including:
- No chargebacks: Once a Bitcoin payment is made, it cannot be reversed. This protects merchants from the costly chargebacks that can happen with traditional credit card payments.
- Lower fees: Credit card companies typically charge between 1.3% and 3.5% per transaction. Bitcoin transaction fees are typically much lower.
- Increased sales: Some customers only want to buy goods and services with Bitcoin. By accepting cryptocurrency payments, merchants can attract crypto enthusiasts and increase sales.
There are, however, a few potential downsides to consider, including:
- Volatility: The value of Bitcoin and other cryptocurrencies can fluctuate wildly. This means that the amount of Bitcoin a merchant receives for a sale could be less than the amount of USD the goods or services are worth when the payment is made.
- Compliance: In some jurisdictions, there may be regulations surrounding the use of cryptocurrency payments. Merchants should research whether accepting Bitcoin payments is legal in their area, how to handle tax preparations and customer returns.
With more and more businesses beginning to accept Bitcoin, it seems likely that the trend will continue to grow. So who is already taking BTC payments? Below are some notable examples.
Crypto gambling: One major application of Bitcoin payments
The crypto gambling industry is one of the most rapidly growing industries around the world. Large providers like BC.Game casino are growing rapidly. Unlike traditional online gambling sites, crypto gambling sites allow players to gamble directly with Bitcoin.
This gives players advantages like complete anonymity and without the need for a third party. Crypto gambling sites are also able to offer significantly lower house edges and return-to-player rates than traditional online gambling sites.
But it goes beyond gambling, too. Tech companies, supermarkets, and even Starbucks now take crypto payments:
1. Microsoft
Ever at the edge of innovation, Microsoft was one of the first major companies to accept Bitcoin as payment. The process is pretty straightforward—customers can add Bitcoin to their Microsoft account and use it to buy apps, games, and other digital content from the Windows and Xbox stores.
2. Newegg
In 2014, Newegg partnered up with BitPay to start accepting Bitcoin payments on their site. The popular electronics retailer has since then become a go-to spot for cryptocurrency enthusiasts to buy all sorts of tech products. They are even planning on accepting Litecoin soon.
3. Overstock
Overstock.com is another major online retailer to accept Bitcoin as payment. The Nasdaq-listed online retailer has also used blockchain to distribute digital dividend payments to its shareholders.
4. Expedia
Expedia was one of the first online travel agencies to accept Bitcoin payments. Customers can book flights, hotels, and rental cars with Bitcoin and a variety of other cryptocurrencies.
5. Starbucks
Bakkt is a third-party digital wallet application you can integrate with the Starbucks app to enable Bitcoin payments in stores. The coffee giant is not directly accepting cryptocurrency payments but is working with a company that does – Bakkt will instantly convert your crypto into dollars.
6. Twitch
Twitch is a live streaming video platform popular with gamers and other content creators. The Amazon-owned company allows its clients to use Bitcoin, Ether, Bitcoin Cash, XRP, USD Coin, and more altcoins.
7. Home Depot
The American home improvement store does not accept Bitcoin directly but does accept it through Flexa. So if you’re looking to buy a new washing machine or patio furniture with Bitcoin, you can do so at Home Depot.
8. AT&T
AT&T, the second largest mobile service provider in the United States, also accepts Bitcoin payments through BitPay. AT&T customers can now pay their phone bills with Bitcoin.
9. Whole Foods
Whole Foods, an American supermarket chain owned by Amazon, also started accepting Bitcoin payments through Flexa in select stores. Once again, it isn’t direct BTC payments but rather crypto payments through a third-party app – still, that is another major retailer accepting cryptocurrency.
Conclusion
The crypto world is growing in leaps and bounds and it seems that digital currencies are here to stay. With an increasing number of companies and industries embracing Bitcoin payments, where will BTC go next? Only time will tell…