Topic: What are the benefits of accepting Bitcoin as a method of payment. (Read 518 times)

This is one of the best benefits I can think of about accepting Bitcoin or cryptocurrencies as a payment method when compared to traditional payment methods where one can open a dispute after making the payment and taking the goods and the banks or even the authorities would start questioning you about the transaction, lol.

I have seen this happening a lot where people buy something, make the payment online, and then open a dispute through their banks by saying that it's a fraud payment and they have been scammed and guess what, your bank blocks your account and confiscates the funds when they receive the complain from the other bank which is completely absurd because they don't ask for any proof from the other party and start questioning you about it and ask for payment proof, etc.

I think this just depends on the specific bank you are acquiring the services of, because this has something to do with the competency of the bank. I think bitcoin could be stressful due to the high transaction fees but because it has no intermediary unlike banks it is definitely less complicated in my opinion.
The transactions being confidential is definitely a benefit. Not because there is something shady going on but there’s just too much risk in giving out information nowadays.

When you receive Bitcoin your fees are actually zero. The sender pays the fees.

So, the benefit of accepting Bitcoin as a method of payment is basically having no merchant fees at all. Quite nice.

To be fair, transaction fees are becoming quite a big problem for us but I don't understand why some people deny it and still say that bitcoin's transaction fees are cheaper than bank transaction fees. OP is not the first person to give this false information, I remember recently some people also said this and they are deliberately distorting the truth. How will this benefit bitcoin? Why don't we accept the truth and find a way to solve the problem?


I think for bitcoin to be used as a means of payment, there need to be many factors, not just transaction fees. Even if bitcoin transaction fees are fixed, if the government does not recognize bitcoin as a payment method, will we have the courage to use bitcoin that way? I think the government is the biggest barrier. Also, how many people will use bitcoin as a payment method once transaction fees are fixed, because the majority only leverage it as an investment to make profits? This is a question I always want to know but I think it will be difficult to get an honest answer from everyone.

There many reasons why you should accept Bitcoin payment because it reduce stress of bank transition and also build trust between the two business partner when the transition go successful, it also make the exchange to be confidential.

YOu forgot to mention it makes you cool as f#%k lol jk. But for real. Michael Saylor just saw this post and went "Fuck Yeah" LMAO. I don't think there is really any downside! Other than that one part where you have to pay taxes off of your capital gains depending on the country that you live in, that is the only downside I think to any real investing ;P

I don’t think Bitcoin being non-refundable should be counted as a benefit of using it as a method of payment. It’s more of a unique feature than a benefit. But let’s talk about the lower fees sector. My friend, Bitcoin fees aren’t necessarily lower. When the fee goes up, what happens? What do you say? Bitcoin wasn’t made to be cheaper and it’s not completely cheaper. So maybe you don’t want to add that too, or give an explanation that matches well.

I have to agree on you. As much as using bitcoin as a mode of payment is quite beneficial, but knowing it's transaction fee is not all the time stable, it could end up causing more troubles to us than seeing it as a convenient one. So I think using bitcoin as a currency cannot be totally maximized for now because aside that not all stores and shops are accepting bitcoin, it could also mean higher transaction fees more than we can spend from using fiat.

 However, I'm still hoping one day that we'll get to use Bitcoin for daily transactions.

Clearly Bitcoin transaction fees are most of the time annoying. Most particularly when the market is congested, we all get pressured and almost lose our temper while waiting for the market to go back to normal again. So if that problem will remain unsolved, using bitcoin as a currency will never be satisfying but most likely turn into a troublesome for majority of us. So for now, I'm just settled with bitcoin for long term assets.

Expensive fees in BTC transactions can be subjective. Maybe for you a 5 dollar fee for example is already high but for some, this is still okay. What only matters here is that they can now send money internationally or without restrictions (thanks to the decentralized nature of BTC) and like you said, it is also secure (thanks to Blockchain Technology). Being anonymous is actually a good thing because it can retain our privacy while continuously doing our business.

About taxation, it can also depend on the country because there are countries who don't tax cryptos such as BTC yet, while there are some who does. It's either we will remit our tax manually or it will get charged automatically by using an exchange, shopping site, wallet, etc...

Transaction fees are a real problem for bitcoin, we cannot turn a blind eye and stubbornly say that bitcoin transaction fees are lower than banks.

Indeed, there are benefits to using bitcoin as a means of payment, especially for international payments. We can save time and costs compared to banks if we choose the right payment time such as when the network is not congested. But using bitcoin for everyday payments is not as effective as we expected. Like you said, having to pay extra transaction fees when buying a cup of coffee, a loaf of bread...that's really annoying and I don't think many people will like and accept that.

The things you mentioned about bitcoin payments like accepting international payments, getting new customers, payment security are good enough facilities for now but there are some disadvantages like bitcoin has higher transaction fees than David and credit card or MFS which can discourage customers.  Again here anonymous transactions can also not be a good business experience.  On the other hand there is an opportunity for evasion of VAT tax so it can hamper the welfare of the country.  So you should consider both aspects and according to your country's culture, you should decide whether it would be convenient for you to accept payment in Bitcoin.

Well, the fact is that accepting Bitcoin as a means of payment has many benefits, and almost all of them have been mentioned. Unfortunately, there are many regulations that prevent this from happening, especially in some countries, especially my country. Many countries accept bitcoin only as an investment tool, not as a payment alternative. This is because it is feared that bitcoin will compete with fiat, and it is possible that other cryptos will also be used as payment alternatives. However, you might be able to implement this in the shop you create, and give us the interesting experience you get.

Why would a merchant will give the product for a payment it didn't receive yet?
It's always a suggestion and default things to do is only accept and process purchase from a confirmed payment transaction, that's why every crypto payment gateways and online shop do things the same.
Thus, by using accepting lightning this cons and risks will be avoided.

When was Bitcoin price drop 50% "suddenly" i.e. less than 24 hours? I don't think it ever happened, the biggest dump in 24 hours are only 20%. If the receiver don't want to value their service/goods in Bitcoin, they should convert the coins to fiat immediately.

The seller isn't always in win situation, if the buyer send the coins during the network congested and the seller already give the product, the buyer can replace the transaction and send it to other address, here seller got tricked by the buyer.

have you ever made a transaction when the network is congested? i still remember that i once wanted to make a transaction worth 20 usd and the fees at that time were around 40 usd, so depending on the conditions, bitcoin fees can be more expensive or cheaper compared to conventional payments. especially when you make transactions offline, the fees charged to you can be several dollars, are you willing to be charged that much just to buy a cup of coffee? and moreover there is a 10 minute waiting time for the transaction to be processed.

If we take a look to reasons why bitcoin was developed and introduced by Satoshi Nakamoto, we are going to discover that all what were written as past of the reasons why bitcoin comes in place were going to be included as benefits of accepting bitcoin as a means of payment, since non of them can be found with the use of fiat currency, bitcoin has brought in many opportunities for us and we are using it because there is no other financial alternative to this than bitcoin.

This can be an advantage and also a disadvantage depending on the situation. Once the money is gone, it's gone, there's nobody to help you get it back if their is a problem with the transaction. There are so many situations where the sender will require a refund and except the receiver is not fraudulent and selfish, you might never get that refund.


Recently, this is not something I'll include as an advantage of bitcoin. Bitcoin network fee currently is about $3, it may seem like nothing, but nobody likes giving away more than they should. Last week alor so, the network fees increased to about $50. How many sales are you going to make with that kind of network fee? With fiat, international transactions may be higher, but with within the country transfer, it's definitely not close to that amount.

But what we must consider is for whom we are asking or telling this , for the payer or the receiver ?

for Payer there are no even problem because he will dispose the bitcoin for a certain things or service you need
and the problem will occur for the receiver .

for Receiver after having that payment the problem comes because what if the price suddenly fell to more than half
what or how he can manage to restock having that low value?
the only advantage will come once the price rose high after the payment.

On this part, you can't guarantee. Before, were lot of businesses started to use Bitcoin as additional mode of payment from their business but later on they disabled it, the best example is the Steam, a famous game platform accepted Bitcoin before but halted it after because the reason is transaction fees.

The fact that it's nonrefundable makes it a great medium of payment for the merchant but the consumers the buyers will not feel protected incase of a bad transaction which leaves them at the mercy of the seller's which is a Win-lose situation.

Bitcoin fees are always fluctuating one second we paying  super high fees and the next we paying super low fees, and as a business this could affect the traffic coming there.

I think you agree with me that we aren't really worried about the networks security but it's usually our wallets and private key handling that will determine the security of our assets.

It’s not at all clear to me why the OP compares stores that accept payments in Bitcoin with the Western Union company. I have seen very few such stores, and it is extremely inconvenient, if not downright inconvenient. In addition, the thought that the buyer will not be able to, as the OP puts it, “complain” suggests thoughts that the OP may be able to send goods of poor quality, which the seller will still make a profit by selling. Characterization of misunderstanding.

 And in general, copying someone else’s article in your own words and supplementing it with incorrect statements is not at all acceptable . OP, write about your experience. We all know how to look for information outside the forum.

By the way, OP. Your writing style has not changed. I see your accounts and transferring merits on the forum is highly discouraged.
https://bitcointalksearch.org/user/chiomaobi-3454877
https://bitcointalksearch.org/user/justinapeter-3454858

I wouldn't say lower fees because with the transaction fees reaching up to 500 sats, that's not going to be the truth. Probably in some points of the market, there's lower transaction fees but not all the time. For me, I think that the appeal of bitcoin in terms of medium of payment is the fact that it's secure and private, if you can maintain an anonymous conversation with someone, you can easily do private transactions with them. It's the safest thing with bitcoin too especially for the merchants because there's no risk of people refunding their purchase without any valid reason thus creating a community of careful and cautious people which at the end of the day, will definitely benefit everyone.

Bitcoin has its benefits as a means of payment and what are think woudl be attractive to many businesses would be transaction speed, in less than minutes the recipients should have received his asset and bitcoin has a more stable network than most bank, like in my country its possible to have days of very bad transaction issues coming from the bank network and business that deal on transfers and pos would be having a lot of issues with customers, but with bitcoin as a payment method, that issue can be resolved and then later sold back for fait to the bank.

I have to agree, the benefits go even deeper than just the basics. It's not only about accepting payments but about embracing a whole new financial landscape. Bitcoin isn't just money; it's an investment opportunity. Sure, the price can be a rollercoaster, but savvy businesses can ride those upswings to boost their profits. Unlike traditional banks, Bitcoin operates 24/7. Need to pay a supplier at 3 AM? No problem. That kind of flexibility is a game-changer, especially for global businesses.
Perhaps the most exciting part is the image boost. Accepting Bitcoin isn't just about transactions; it's a bold statement. It says your business is modern, tech-savvy, and ready for the future. This reputation is priceless and draws in the growing number of crypto enthusiasts.
The bottom line? Bitcoin is still finding its footing, but the potential rewards are huge. More money, more freedom, and a better brand image? It's a tempting package for businesses ready to take the leap, IMO.

There are more such as profit deriving, no network error problem, easy access to your money, etc.
If you accept Bitcoin as a means of payment and you hold those Bitcoin and peradventure the price of Bitcoin is surging high, then you will have an additional profit on your business capital because the value of the Bitcoin will increase. Sometimes there could be some bank network glitch that can result to a failed transaction but with Bitcoin you will not experience those network error problem. Due to network errors with traditional financial institutions, you might not be able to access your money sometimes but with Bitcoin, you can have access to your funds all the time.

I think you’re forgetting that YOU are the company. Bitcoin is only a means of payment, it does not control the entire business itself. The customer can call you up and even if you have received bitcoin already, you’d most likely need to give back the money if the customer complains.

Unless your entire transaction was anonymous.
What’s really good with using bitcoin as a payment method is that there is no need for exchange of currency. In my country, usd is very expensive compared to our currency so it would be a huge bother to get x currency to y currency. The fees also depend on how much money you will be sending/receiving and from what country and to what.

Being non-refundable can be both a feature and an issue, because if you make a mistake, there's nobody out there to fix it. As for international transfers, it really depends on what kind of transfer it is and between which countries, but yeah, Bitcoin is often significantly faster for international transfers in my experience. However, it's not always cheaper, especially if we consider nationwide transfers which, in my country, are typically free of charge.
There are some advantages of accepting Bitcoin as payment, clearly, but there are also some difficulties. If it's an on-chain transaction, a person might need to wait for up to 10 minutes for the first confirmation. Also, depending on what someone's buying, a $3 transaction fee can be huge. Finally, there can be complex tax implications in some places.

Bitcoin off is acceptable, but as you said, I could not agree with you because if I run a business, if I accept Bitcoin payment, if there is something refundable in that question, and if I get it back through a guarantee, then he must pay his money Refunds will be made in Bitcoin. So it's a different matter of offerability.

Again, you said you think it's cheaper than Western Union, but that's different from how you should look when doing Bitcoin transactions on Western Union. This is the wrong run time. Bitcoin is trading at a higher price, and now you have to see how the fees are going.

I think cryptocurrency investments can be both good and bad returs. It is great to have easy access to our money but if we are not careful you might buy or sell at wrong time and lose a lot. As a business owner I need to think about how to use my cryptocurrency profits for everyday expenses and business costs. We can not just keep our profits forever and we also need to consider taxes. We might get taxed twice or once for our business profits and again for our cryptocurrency gains. This could reduce our earnings even more. So it is important to find balance between investing in cryptocurrency and managing our business finances wisely.

an increase of 10% may still give us a profit, but what happens if there is a crash after payment is made, unless Bitcoin is already a substitute for fiat currency, perhaps this is not too much of an obstacle, for now it would be more profitable to use it to search Money is not just a hedge against inflation, every time we convert it to fiat currency we will be immediately taxed, and that also needs to be taken into account.

You did not have a business and did not accept payment to your business, because you don't have one, so this copied advice is not from your experience. It is more interesting if advice, benefit are from your business management experience and you share it here.

You have to do tax report for your business and might have to pay business tax if your business is profitable.
You have to pay tax if you sell your bitcoins and get profit from selling.

If your business or your bitcoin sale is not profitable, you will not have to pay tax to government.

The counterpart of this advantage is if you do not monitor your coins properly, you might catch them at a wrong time. The earnings of a business is I would assume used for daily expenses and other operating costs of the business so you can't just hold your profit in there forever considering you also need the money to operate the business.

Another thing to consider is tax. I am not an expert (do correct me if I am wrong) in terms of taxation but I would have to assume that you will get taxed twice. The profit off of your business then the profit in crypto.

Do you think stable coins are better than Bitcoin?

From centralization to decentralization differences, risk of transaction reverse, risk of fund freeze even in your wallets. You can have risk of loss for your fund with stable coin but you won't have it with Bitcoin and if you use a non custodial wallet.

PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets
Stable coin and black list

Use Bitcoin blockchain, non custodial open source wallet to store bitcoin if you want a safe tool to store your wealth for a long time. You will have your own bank with Bitcoin blockchain and Bitcoin open source non custodial wallet.

Reminder: do not keep your money in online accounts

Because its volatility, for that purpose, I think USDT or USDC are better than BTC. You wouldn't like to sell a car and lost an important part of your money.

The transaction fee varies, there factors that are used to calculate the transaction fee of bitcoin, one is the size which is the number of input and output too, the most important factor again is the network congestion, if the network gets congested bitcoin transaction fees goes up as many people will want to get their transactions confirmed faster and that will make it difficult for low fee transactions to be picked. So ideally this days bitcoin isn’t suitable for low amount transactions.


This is can be reversed when there is a chain reorg and the transaction gets dropped back to the mempool and the sender actually double spends it to a different address, that’s why the minimum requirement for most exchanges are either 3 or 6 confirmations to avoid a chain re org

Bitcoin has got several advantages when compared with our traditional system of making payments. Some of those are what you have mentioned in the OP but even that still depends on what angle your looking at it or making this comparison. Mind you, am very much in for Bitcoin, I root for it but to understand it more better, we don’t have to share what could count towards the negative as well.

Bitcoin been non refundable counts towards the positive as well as the negative. This is so in the sense that,
Merits: Once you’ve made payments and it’s got at least one confirmation on it, it’s impossible to reverse.
Demerits: As a merchant, your customer have to wait until the network starts to confirm transaction before the deal could be closed. We all know how this confirmation can take some time based on fee and network congestion which isn’t encouraging for swift business.
Also, you can’t afford to make any mistakes with the address and not notice it quick enough to initiate a double spending before confirmation else, your money is just gone.

Well, that’s depends.
I usually don’t find it funny when the network is congested, like it was just over a week ago although, it’s much improved right now but, Fred aren’t cool here and it doesn’t matter if your transacting across boarder or your doing it locally. The fee is just the same, irrespective of the amount involved of course, number of confirmations too.

Although, it’s highly discouraged, when you happen to be holding your funds on an exchange, you could be hacked. When it’s about the network, of course not. That isn’t going to be the case.

OP, You may have thought that using Bitcoin as a payment method for businesses has many advantages, but it also has several disadvantages. Maybe the payment system of the business can be done through Bitcoin to attract customers but in this case if you talk about Bitcoin transaction fees there are definitely problems. Assuming you have sold a product worth ten dollars, if an additional fee of 10 dollars is added to the price of your product, then the total cost will be 10 dollars plus ten dollars, i.e. 20 dollars. In this case, a buyer will never bear such an additional fee. Again if for some reason the buyer wants to refund the money from you and in that case you have to bear additional fees again, there will be a huge change of capital in your business and you are guaranteed to have a huge loss in your business. Considering all these problems, you would never want to approve Bitcoin as a payment system for any business.

If you offer poor business services, or sell bad products, or even that you sell good products and offer good services but have poor marketing, deciding to add bitcoin as a method of payment to your business will not automatically increase your customer base. There will be people who will hear that you have added bitcoin as a method of payment in your business, but hearing about it is not equal to action and many people will hear about it but will never still visit your business to make a transaction in bitcoins.

In such cases, don't convert your btc to USD or other currencies. You will only lose if you are in a hurry and have urgent needs. But if not, you can always wait for the btc market to increase its value.
For now, the major benefit that I am seeing is that the possibility to earn profits is high because of its volatile nature. But you need to understand that it depends on when will you cash out this currency.
Other benefits that you can derive from this currency -
> cross-border payments with very low transaction fees
> anonymous payments, no need to get the credentials of your clients
> you can transact at the comfort of your home

A lot of businesses use bitcoin to basically allure and lead customers into their business. Some people specifically seek out bitcoin payment only and it can be beneficial if a business started accepting bitcoin.

But of course just like any businesses, a business that has bad quality of goods and services will not be saved by bitcoin alone.

Personally I’d only use bitcoin for one big purchases rather than daily expense because of the high transaction fees.

Aside focusing on one direction you need to also note that, Bitcoin can be in sideways or dump movement within some few hours, so it can cause loss to its trader after receiving Bitcoin as a tender for payment.

Well, of course, there's always a disadvantage. There are no perfect things in this world, and I agree with the disadvantage you have mentioned. The most common problem they might encounter if they accept bitcoin payments is the high transaction fees, and sometimes the network is too congested, so expect a slot or delayed receiving and sending of bitcoin assets. Well, it can't be helped. All technology has its own down side, and it can't be helped. There are always limitations in a technology, and that's why implementing bitcoin as a payment method should be thought through and planned well because it's not going to be easy, especially for those small businesses that want to add bitcoin as their payment method. But the most important thing is that no matter what the downside of bitcoin is, it has more advantages and benefits, and I think we mostly know what it is and how bitcoin has become a great opportunity for us and a good source of income.

Op if you accept bitcoin as a payment method in your business then it is refundable. I have seen people refund bitcoins back to the sender because of a mistake made by the sender. So if you send bitcoin give seller and you decided to leave the good and not to buy again the. The seller would refund the coins back to you. And that is where the transaction fee will come, and the buyer of the goods will bear the two transaction fee and that is where bitcoin p2p was generated. And at the beginning when Alice and Bob did their first transaction the fee was very small.

The other factors might true and not the second option.

As i've said over and over again, and I will forever stand by this statement, bitcoin will never reach it's full potential without being an elite payment system.  I know most are shifting to the "digital real estate/store of value" take, which I'm not disagreeing with, but why can't it be all three is what I don't understand.  I mean..why not?  The devs are continuing to implement things such as segwit, taproot (thanks to our own Gmaxwell) and other upgrades to help with transaction speeds (I imagine transaction costs as well, but not smart enough to know if that's a big focus for them or not, or if they go hand in hand).

For me accepting crypto as a payment method has its advantages and disadvantage.
Some might see it as expensive due to the transaction fee, and also they would need to wait till it has been confirmed.
We should also consider the price, we all know that crypto is volatile so the price could move up or down which could give the receiver more profit or lose in their business.

It's not an advantage for a business owner who needs to pay bills and operates on small margin. You may not know this, but most resellers get less than 5% in profit.
This is especially visible in the cost of gasoline, but also new cars, apartments, and many other goods and services.

Let's say you have a car dealership and the cars sell for $50k and you get 5%, so 2,5k in profit for every car you sell, but you have to pay staff, electricity bills. When you subtract all of that you end up with maybe 1k in your pocket. By the time you're done bitcoin goes down 10% and you have $250 less. It can go up, but you can't wait, you have bills to pay, so you sell at a loss.

Though the points you've highlighted here are correct, I still can't understand your first point mind explaining? Bitcoin can do a lot !ore, providing a wide range of payments and economical possibilities in the crypto market. With Bitcoin, you can make cross boarder transactions with less fees and faster compared to the local country across boarder payments. Having Bitcoin makes you your own bank and literally, you cannot be controlled by the government or any institutional body except you use centralized bodies that a payment system. Though we can say that Bitcoin adoption is gradually increasing, but not every county is yet to permit it as a payment system for their citizens making your last point not totally agreeable. As in some countries, making such announcement would or might get you into trouble with the authorities.

The most important benefit of accepting Bitcoin i could think of at the moment is the fact it's like an payment with possibility of more profits. Let's say if I have received $10000 as a payment and in a week the akue f Bitcoin increases by 10% then I would have $1100 if I hodl it.

But I strongly object to your point saying it's cheaper than western union, I think you should check the transaction fee during bull run or when Bitcoin's value is higher.

So what is your experience ? We know to benefits of accepting Bitcoin as a payment method do you want to share your experience of using bitcoin as a payment method for an item or commodity because? I love great customer service and I would choose a Fiat only business over a business where Bitcoin is accepted if their customer service is bad. Therefore the benefits of Bitcoin as a payment method which one of it is new customers depends on the service delivery. A shop or business that puts customers first will have new customers while one that doesn't won't have even if they announce having Bitcoin as a payment method.

There are several advantages of taking Bitcoin as payment. Depending on who you are the different advantages I am about to list could mean everything or nothing at all.

Non-refundable.

Someone can’t just call the Bitcoin company and make up a lie that they never received their product. Once you have the Bitcoin it’s yours.

International.

Provided you have internet and some sort of computer device you can download a Bitcoin wallet and take payments. You don’t have to worry about the customer coming from a country with poor currency. It’s also much faster than Western Union Wire Transfers. You can also make payments with it anywhere in the world that a merchant accepts it.

Non-Institutional.

Bitcoin is not tied to any government, corporation, religion, or institution. If you live in a country with a failing government or failing currency you can still do business and not worry about losing all your hard earned money.

Lower Fees.

As mentioned before the fees are much cheaper than Western Unions.

Security.

The Bitcoin network has never been hacked. Provided you properly store your private keys your Bitcoin is safe.

Non-banked.

Bitcoin does not require a bank to use. This means that you can take online payments from people who do not have bank accounts. You also won’t have all those pesky bank fees. You also don’t have to worry about your Bitcoin being frozen arbitrarily by a bank.

New Customers.

Make an announcement that you are accepting Bitcoin and it will draw attention from the cryptocurrency crowd. Believe it or not there are more of them then you think.

Source.
https://www.quora.com/What-are-the-benefits-of-accepting-Bitcoin-as-a-method-of-payment