We are delighted to share a recent article written by the Co-Founder of Bridge2Bitcoin, James Dewar. Following our recent collaboration for the Bitcoin + Beers event hosted at Myna HQ in Cheltenham, we are pleased to share the following piece.
Why a small business should accept Bitcoin.
Article by James Dewar, founding partner, Bridge 2 Bitcoin.
Bridge 2 Bitcoin specialises in helping on board businesses, primarily in the UK, to accept Bitcoin and then promotes these businesses to the growing market of Bitcoiners. Their services are free of charge.
Summary
For most consumer and retail-facing businesses, the main purpose of accepting Bitcoin is to target a market niche - the growing market of Bitcoiners. This can drive new revenue into your business, which is particularly valuable for businesses which have high fixed costs such as hospitality and retail outlets but can be a useful additional tactic for any business.
Features of the target market
- Growing in size
- Growing in relative wealth
- Easy to communicate with
The benefits of engaging with a target market that is growing in both size and wealth are self-explanatory. Today, whilst its size is small in absolute terms, that small size has the advantage that it is very cost effective (free) for your business to make itself visible to customers. As the market grows, your business should grow with it, but new entrants will not benefit to the same degree as the early adopters from this marketing advantage. Eventually not accepting Bitcoin will become a negative for businesses; accepting it will simply become a ‘hygiene factor’.
How complex is the technology?
Innovations over the last few years have abstracted away most of the complexity allowing businesses to exploit this opportunity with very little time or difficulty. As an example of how easy this is to do now, Bridge 2 Bitcoin regularly onboards businesses over a one hour Zoom call. This hour is usually split 50/50 between introductions and initial questions, with the second 30 minutes being spent doing the set up.
How much does it cost to set up / run?
Bridge 2 Bitcoin offers a free service. In most cases there is no need for any new point of sale hardware. Most payment services have no sign-up fees, no ongoing subscription fees, and no fixed fee per payment. Charges are normally a low percentage per transaction ranging from less than 0.5% up to 1.0% which compares very favourably with most existing payment providers.
Further, businesses should note that this fee can be viewed as a marketing, rather than payment, fee as it is unlikely that their existing customers will switch to paying in Bitcoin in the short term; those paying in Bitcoin are overwhelmingly likely to be entirely new customers to your business.
In conclusion, the first new customer paying in Bitcoin provides an infinite Return On Investment (ROI) as there is no cost to set up. If no new business is generated, then no charges are incurred.
What are the accounting and tax implications?
Myna is a global firm specialising in cryptocurrency accounting and advisory services, offering tailored solutions for digital asset management. From accounting for Bitcoin investments to scaling blockchain businesses, their expertise covers a wide range of needs. Beyond general tax advice, Myna provides forensic accounting, crypto compliance, and guidance on challenges like crypto security, corporate structuring, and recovering stolen digital assets. With deep knowledge of crypto and blockchain market, Myna helps businesses make informed decisions about managing crypto assets.
What are the risks?
The only downside risk is the time you spend in conversation with MYNA or on the call with Bridge 2 Bitcoin.
You are derisking your business by:
- Using a payment system that cannot make chargebacks. Payments are instant and final settlement
- Implementing a payment system that sits outside the existing banking and payments systems. This provides additional resilience in the event of any banking crises or payments outages.
Can my business do more?
After crossing the threshold to accepting Bitcoin, many businesses start to develop new products and services aimed at this new market. Bridge 2 Bitcoin and MYNA Accountants can share case studies and discuss with you further development opportunities for your business.
