What once was considered a fad, may now possibly be the future of finance. One word: Bitcoin. It was this very coin that arguably started the cryptocurrency wave, which started more than ten years ago. Since then, we’ve seen all types of innovations in the blockchain sector, which makes it one worth watching out for.

For many crypto newcomers, Bitcoin is likely the first cryptocurrency they’ll encounter. After all, it’s the biggest one in terms of market cap. But what exactly is Bitcoin? In this article, we’ll talk about the rise of Bitcoin and how businesses can harness the power of this currency for financial growth.

What Is Bitcoin?

The popular digital currency was created in 2009 by Satoshi Nakamoto – an anonymous entity that could be an individual or a group of persons. Unlike traditional currencies, Bitcoin (BTC) operates in a decentralized network that uses blockchain technology.

Why Is Bitcoin Valuable?

One of the biggest arguments for Bitcoin is its store of value. This can be attributed to its scarcity. There will only ever be 21 million Bitcoins in existence, and these coins can only be created by mining.

The supply is expected to reach this amount by 2140, with an average of 900 Bitcoins minted daily. This has always been one of the major arguments supporting Bitcoin. Especially when compared to traditional currencies where the supply is regulated by the government. Being a decentralized currency, Bitcoin can also be advantageous to countries with unstable economies.

The Evolution of Bitcoin

While it was created in 2009, it wasn’t until 2010 that Bitcoin was first used in a financial transaction. In May 2010, a programmer named Laszlo Hanyecz ordered two boxes of Papa John’s Pizza and paid a fellow BitcoinTalk forum user 10,000 Bitcoins. At the time, that would be worth $41 – quite reasonable for two boxes of pizza.

Fast forward to today, 10,000 BTC is now worth a fortune that goes up to hundreds of millions of dollars – that doesn’t sound so reasonable for a few boxes of pizza. What this story shows was how Bitcoin grew from a proof of concept to a digital currency that’s actually used today. And if anything, this cautionary tale only demonstrates its tremendous value.

Bitcoin in Business: Opportunities for Financial Growth

Given all this information about Bitcoin, it couldn’t be more obvious that Bitcoin is, indeed, recognized as a valuable digital asset. With something so valuable, businesses can leverage the power of Bitcoin to grow financially – just like how Bitcoin grew over the last few years. The question is: how? Below, we’ll talk about how Bitcoin can create new opportunities for your business:

Expanding Customer Base

To expand your customer base, it’s wise to accept different payment methods – the most common ones today include cash or credit card. But have you considered accepting Bitcoin as a mode of payment? With the number of Bitcoin holders increasing exponentially, you can further expand your reach. This, in turn, generates more sales and revenue for your business.

Lower Transaction Costs

One of the biggest advantages of Bitcoin transactions is that they bypass the excess fees imposed by the traditional finance system. This, as a result, lowers transaction costs. It helps that these transactions are processed quickly, which easily helps businesses access their funds – so that’s another point for Bitcoin.

Investing for Growth

If you see the value in Bitcoin, then investing in it might be an interesting choice. With the astronomical rise of the cryptocurrency king, some businesses keep a portion of their reserves in Bitcoin. Should its value rise, then so will your holdings – but the converse is also true.

Taking risks, such as investing in Bitcoin, opens new doors for businesses. This helps them succeed in their respective industries. However, these risks must be calculated. Therefore, understanding the risks associated with Bitcoin can protect your business from financial losses.

How Businesses Can Manage Bitcoin Accounts

The advantages of using Bitcoin in businesses are plenty, but businesses must learn how to manage their Bitcoin accounts to reap these benefits. Here are some that you must know:

Choose a Secure Digital Wallet

With all sorts of cybercrimes on the rise, choosing a reputable digital wallet is paramount to any business looking to manage its precious digital assets. Alternatively, businesses can store their Bitcoins in cold storage (i.e. physical storage for crypto assets), however, this option prioritizes security over the convenience that digital wallets provide. At the end of the day, it’s all about choosing a reputable wallet that fits your needs.

Accounting for Bitcoin

Being a novel asset, Bitcoin presents new challenges for accounting. But with cryptocurrencies going mainstream, more software solutions are providing accounting services for Bitcoin – ensuring accurate financial reporting and regulatory compliance.

Final Thoughts

The rise of Bitcoin opens a plethora of opportunities for businesses to drive financial growth. By understanding how to successfully wield the power of the world’s biggest cryptocurrency, businesses are poised to benefit from the digital currency revolution.

Of course, businesses must conduct thorough research on this cryptocurrency before integrating it into their operations. With that said, the future seems to be bright for many businesses that will leverage the power of Bitcoin – provided that they follow a proper risk management strategy.