Why will every business end up with a Bitcoin merchant account?

Bitcoin has found a way into every news site online, mainly due to its historic gains in its value. But by the end of 2020, there were over 2 thousand different crypto tokens available to trade, buy or sell on the market. As much as the adoption was initially slow, Bitcoin adoption is increasing by the day resulting in establishments beginning to adopt the digital currency as a form of payment.  

Before we go further into Bitcoin merchant account rabbit hole, let’s look into the history of Bitcoin and how far it has come from its creation.  

The history of Bitcoin 

When it was first proposed in 2008, there were a lot of enigmas surrounding Bitcoin and its creator Satoshi Nakamoto whose official identity is still unknown to this day today. He posted a white paper on a cryptography forum with the title, Bitcoin: A Peer-to-Peer Electronic Cash System. This brought a lot of attention and raised discussions on the particular topic in the underground cryptography community. In 2009, the Bitcoin software was released to the public, which was initiated by the process called Bitcoin mining. Bitcoin wasn’t very valuable at the beginning of that year price-wise, since it was only discussed and held in closed circles by just a few individuals  

On May 22, 2010, Laszlo Hanyecz, a programmer, used 10,000 Bitcoins to buy two pizzas from Papa John’s. If he had kept those coins and waited up till now, he would have been worth $389 million today. This led to what we know as “Bitcoin Pizza Day”. In 2011, bitcoin’s dominance in the digital space was challenged by newly created crypto token, which is known today as altcoins. The alternative token is an expression for any other crypto token that accepts Bitcoin. One of the first altcoins included Litecoin and Namecoin. The newly minted cryptocurrencies supposedly offered better services with their technology, like faster transaction speeds, lower fees, and other features.  

The Bitcoin adoption begins 

Bitcoin’s adoption started slowly with a few very volatile early years. Three years after the first Bitcoin was mined, there was a large price crash for the first time. Its value has surpassed the $1000 mark and the price fell down all the way to about $300. In January 2014, Mt.Gox, at that time the world’s largest Bitcoin exchange, has suddenly disappeared offline and all of a sudden none of the users could retrieve their Bitcoin funds. Around 850,000 Bitcoins went missing and everyone who owned anything on the Mt. Gox platform has basically lost everything. On the 20th of March 2014, about 199,999.99 of those missing Bitcoins were finally located in an old digital wallet. This reduced the number of lost Bitcoins down to 650,000, but further Investigations are still running up to this day. In 2015, the price per coin reached the $1000 mark again and by 2017, the price exploded all the way up to $10,000 due to the rising interest of the crypto environment. 

Bitcoin Today 

At the beginning of 2018, several government agencies all around the world have chosen to tighten their policies and regulations of digital currencies. That combined with the block size war within the Bitcoin community has caused the biggest crypto asses to crash back down again, losing almost 80% of its monetary value. With the start of the pandemic in early 2020, Bitcoin value almost quadrupled reach about $28,000 per coin. The digital currency gained a lot of big tech supporters, one of the Tesla founder and billionaire tech entrepreneur Elon Musk, but he later switched sides and started supporting Dogecoin, stating that he is worried by the energy consumption of the Bitcoin network. But Bitcoin hasn’t slowed down since, reaching a new benchmark of $65,000 in May of 2021. 

What is a Bitcoin merchant account? 

Bitcoin merchant account is the primary way that lets businesses accept crypto payments and provides a way for crypto holders to spend their Bitcoin in restaurants, bars, brick-and-mortar stores, and online merchants. Because cryptocurrencies are becoming more popular by the day, your clients might prefer making payments and online purchases using their crypto, so a Bitcoin merchant account makes it more convenient and easier for consumers to buy their products in a fast and secure manner. 

How does it work? 

A Bitcoin merchant account is a software solution that functions as an agreement between the business and the bank account of the business, packaged in a payment processor whose primary goal is the settlement of Bitcoin transactions. When a customer wants to pay for a product or service, a QR code or link is generated, so the payment can be made. The Bitcoin transaction is then processed and sent to the merchant’s crypto account. From that point on, the business owner can decide to transfer the funds back to this business bank account or he can just keep the funds in his crypto wallet if he chooses to do so. If you’re already running an e-commerce business and you want to enable accepting Bitcoin from your customer, the Bitcoin merchant account is all you need. 

Why should your business start using it today? 

A Bitcoin merchant account has a lot of advantages when compared to the traditional form of business banking. Here are some of the reasons why you should start using it: 

  • Worldwide network access – Bitcoin merchant accounts can be accessed and used all over the world. You can accept and process bitcoin payments from any location on the planet.  
  • Competitive rates – Compared with the traditional forms of accepting payments, it costs less for both parties, customers, and retailers to transact with it.  
  • High volume transaction processing – Bitcoin merchant accounts give you enough processing ability for your business to accept many more instant transactions from any location. 
  • Fast transaction confirmations – payments are processed much faster when compared with traditional payment systems. 
  • Charge back and fraud prevention – using a Bitcoin merchant account means safety for your business so you can prevent unnecessary chargebacks and frauds. 

To start using your Bitcoin merchant account, you need a partner that will help you with choosing the right setup and the platform for implementation. Elly empowers merchants by providing one global point of sale solution for all payment methods including all Bitcoin services.

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