Online currency has taken hold and doesn’t seem to be letting up. Although it is relatively new, Bitcoin is a household name for many people in the business community as many people have a solid amount of their net worth in the cryptocurrency. This has left many business owners in the debate of whether they should accept this currency as a form of payment. The real estate industry is no different as people from all over the world have the cryptocurrency and it is regulated. The following will go over the reasons to accept Bitcoin and some reasons why you may not want to accept it.
A Great PR Move
Newspapers and different publications are fascinated with Bitcoin and feature businesses that accept it as a form of payment. For example, 3 law firms were featured on television for accepting the currency. Free marketing and advertising for your realty business just by accepting different forms of payment is very positive. This will also give your realty business a positive public image as you will be seen as ahead of the times and the realty business of the future.
Fluctuating Value
Bitcoin has a history of a value that fluctuates quite frequently on a daily basis. In the early years of Bitcoin a man purchased a pizza in Florida with the currency which was valued around 18 dollars. At the peak of Bitcoins value, that pizza would have cost close to a million dollars. It is for this reason that a business should consider accepting Bitcoin as the currency accepted could have its value skyrocket. There are risks involved as Bitcoin at its peak was around $1000 per Bitcoin but now is valued at around $250. The volatility of Bitcoin will decrease as more people begin using it the so the risk is decreasing day by day.
Is it a Fad?
There is a possibility that people might not decide to use Bitcoin anymore. This could leave a realty business in debt very quickly as the volatility is quite high. Although the volatility of Bitcoin is going down, the fact that the value went from $1200 per Bitcoin to $600 in 48 hours has many business owners spooked on the idea of accepting them as payment. There are business owners who swear that they will never use the currency throughout the world. This seems to be closed minded as Bitcoin is as volatileas many international currencies and can be traded without fees or taxes on the international basis.
Very Difficult To Tax
Taxing Bitcoin is impossible as the online currency is almost impossible to track with transactions. In the United States the Federal Reserve is having a nightmare trying to track all of the transactions that are being done online. There will eventually come a time where taxing Bitcoin will become a priority but until then the users of Bitcoin can trade them without the fear of being taxed.
As you can see Bitcoin is much like any other currency as it fluctuates with its value. Many other industries have begun taking it as a form of payment like the online gaming industry. A business owner should know the risks and benefits of accepting Bitcoin as a form of payment. There could be a day where only online currency is accepted internationally as currencies from other countries often devalue when going to a more affluent country. Doing your research is the most important thing that you can do before making the decision whether it is right for you. Stay ahead of the times and potentially become rich in the process!
