Update by Candice So, March 20, 2014: We had a great time with today’s Twitter chat, with lots of great questions raised and excellent insight coming from our participants. Check below for a recap of what we covered.
Bitcoin’s been making headlines for more than a year now – but there are still a lot of questions that remain for businesses who may want to accept the digital currency as a method of payment from their customers.
Here at IT Business.ca, we want to help business owners tackle those questions through a Twitter chat on Bitcoin and its potential as a virtual currency.
Using the hashtag #BitcoinITB, we’ll be gathering for an hour-long Twitter chat on Thursday, March 20 at 1pm ET for any business owners who want to learn about the pros and cons of accepting Bitcoin.
For the chat, we’ll be bringing on guest experts who are knowledgeable on both Bitcoin and on digital currencies. We’re excited to welcome:
– A. Traviss Corry (@ATravissCorry), managing director of Bitcoin Decentral, Toronto’s new accelerator for Bitcoin-related startups;
– Anthony Di Iorio (@bitcoinalliance), executive director of the Bitcoin Alliance of Canada; and
– Robert Burko (@eliteemail), president and founder of Elite Email, one of the first businesses in Canada to begin accepting Bitcoin.
Here’s a recap of what we learned during our chat.
Q1. What are the advantages of accepting Bitcoin from customers?
A1. Bitcoin lets business avoid high credit card fees and chargebacks. Plus, they’re easy to start accepting. #BitcoinITB
— Elite Email (@eliteemail) March 20, 2014
#SMBs can accept electronic payments w/ #Bitcoin with much lower fees. Security is enhanced as no cash is stored onsite. #BitcoinITB
— Michael Perklin (@mperklin) March 20, 2014
@itbusinessca Low fees. Protect against fraud. Fast global payment network. See http://t.co/pO5kq9JJ6O for more information. #BitcoinITB
— Buttercoin (@SunnyButtercoin) March 20, 2014
Q2. How can SMBs deal with the volatility of Bitcoin’s value?
SMBs concerned about volatility may convert bitcoins to dollars instantly upon receiving payment. #BitcoinITB @itbusinessca @bitpay — Buttercoin (@SunnyButtercoin) March 20, 2014
A2. Bitcoin volatility was a huge issue for us. To solve it, we instantly exchange Bitcoins into CDN$. So, we know what we get. #BitcoinITB — Elite Email (@eliteemail) March 20, 2014
@itbusinessca #SMBs can use #CAVirtex or #BitPay to auto-sell #bitcoin upon receipt. Cash is put into bank nightly ^@mperklin #BitcoinITB — Bitcoin Decentral (@BDecentral) March 20, 2014
@coindesk poll shows 56% of Bitcoiners think the price will hit $10K in ’14. http://t.co/IQEkh00jWq Volatility is here to stay #BitcoinITB — Elite Email (@eliteemail) March 20, 2014
Q3. What kind of advice would you give to SMBs who start accepting Bitcoin for the first time?
A3. After a business starts accepting #Bitcoin, they can get on lists of “where to spend bitcoins” for extra exposure. #BitcoinITB
— Elite Email (@eliteemail) March 20, 2014
New to bitcoin? step 1) google ‘bitcoin’ 2) buy some bitcoin 3) experiment with bitcoin. @itbusinessca #BitcoinITB
— Buttercoin (@SunnyButtercoin) March 20, 2014
Q4. In the past, people have called Bitcoin a Ponzi scheme, or they’ve said it unfairly benefits early adopters. Thoughts?
Ponzi is defined http://t.co/BrRKZN1dk2. #Bitcoin doesnt move money from new investors to old ones, so not Ponzi. ^@mperklin #bitcoinITB — Bitcoin Decentral (@BDecentral) March 20, 2014
#Bitcoin is a net protocol like SMTP, HTTP, and IRC. Allows transfer of wealth over the net like email sends letters ^@mperklin #bitcoinitb — Bitcoin Decentral (@BDecentral) March 20, 2014
A4. Bitcoin is far from a ponzi scheme. Early adopters did and do benefit, but that is not a problem. Good for them! #BitcoinITB — Elite Email (@eliteemail) March 20, 2014
Besides if Dorian Satoshi is the creator of #Bitcoin the guy only drives a Corolla, so not a profitable pronzi scheme 😉 #BitcoinITB — Brian Jackson (@brianjjackson) March 20, 2014
I don’t think #BitCoinITB is a ponzi scheme but I’m staying away until there is regulation and stability as a currency #bitcoinlaw — Andy Baryer (@AndyBaryer) March 20, 2014
Q5. Should SMBs consider accepting Bitcoin alternatives like Litecoin, Namecoin, or Dogecoin?
A5. Cryptocurrency is all the rage, but I wouldn’t want to make our pricing page have too many options. #BitcoinITB — Elite Email (@eliteemail) March 20, 2014
#SMBs should always watch for new technologies that benefit them. #Bitcoin is an infant, but altcoins are embryos. ^@mperklin #bitcoinITB — Bitcoin Decentral (@BDecentral) March 20, 2014
Q6. Have any SMBs in this chat ever accepted payments in Bitcoin? What was your experience?
@itbusinessca A6. My business vapetroplis.ca accepts Bitcoins – we find our Bitcoin customers are extremely loyal #bitcoinITB — Michael Valentine (@mw_valentine) March 20, 2014
@candice_so Yes, our Bitcoin customers have a higher return rate than do customers paying through traditional methods #bitcoinITB — Michael Valentine (@mw_valentine) March 20, 2014
Q7. How can SMBs ensure Bitcoin transactions are secure, or encrypted from end-to-end?
@itbusinessca #bitcoin is already secure from end-to-end if you receive funds into cold storage. ^@mperklin #bitcoinITB — Bitcoin Decentral (@BDecentral) March 20, 2014
Cold storage = RT @BDecentral: A #bitcoin key not connected to any network (offline laptop, paper wallet etc) ^@mperklin #bitcoinitb — IT Business Canada (@itbusinessca) March 20, 2014
@brianjjackson We exchange Bitcoin for CDN or US$ right away (usually). Our #bitcoin wallet is not appealing at all to hackers. #BitcoinITB — Elite Email (@eliteemail) March 20, 2014
If I have bitcoins on my mobile phone and it’s backed up is that enough security give the theft/loss issues? #bitcoinitb — Mat Pancha (@mpancha) March 20, 2014
@mpancha I’d suggest putting a PIN on ur phone and on the wallet itself. Make sure passwords are strong enough. ^@diiorioanthony #bitcoinitb — Bitcoin Decentral (@BDecentral) March 20, 2014
Q8. What happens if you lose your Bitcoin wallet credentials, or if your wallet is hacked?
Losing your bitcoin private keys is equivalent to losing cash or gold, impossible to get back. #BitcoinITB
— Buttercoin (@SunnyButtercoin) March 20, 2014
A8. Losing your physical wallet = Bad. Losing your #Bitcoin wallet = Bad. We backup our wallet on a flash drive in a bank vault #BitcoinITB
— Elite Email (@eliteemail) March 20, 2014
Q9. What Bitcoin exchanges and service providers do you recommend to SMBs converting the currency back to Canadian dollars?
A9. We use https://t.co/lkMPdMkWUE as our primary exchange for Bitcoin-to-CDN$. Not Mt. Gox! #BitcoinITB — Elite Email (@eliteemail) March 20, 2014
@itbusinessca The options include @CAvirtex and #BitPay. ^@diiorioanthony #bitcoinitb — Bitcoin Decentral (@BDecentral) March 20, 2014
Q10. When Mt. Gox filed for bankruptcy, many people lost their Bitcoins. How can businesses be protected in these situations?
A10. A lot of people knew that Mt. Gox was bad news to begin with. It’s why “being goxed” is a thing: http://t.co/hV8Rel7cIT #BitcoinITB
— Elite Email (@eliteemail) March 20, 2014
@itbusinessca Try not to leave #bitcoins in the hands of 3rd parties. #Bitcoin enables you to be your own bank. ^@diiorioanthony #bitcoinitb
— Bitcoin Decentral (@BDecentral) March 20, 2014
Q11. For Bitcoin to be a true currency, people must spend it, not just hoard it. So how can SMBs promote its use?
Perform due diligence. Things to look at: 1) leadership team 2) security practices 3) backers #BitcoinITB
— Buttercoin (@SunnyButtercoin) March 20, 2014
Best way for SMBs to help adoption is to simply start accepting bitcoin for the products and services they currently offer. #BitcoinITB
— Buttercoin (@SunnyButtercoin) March 20, 2014
@itbusinessca A11. Besides accepting it, The best way #SMBs can promote #Bitcoin is by paying their employees with it. #bitcoinITB
— Michael Valentine (@mw_valentine) March 20, 2014
“If you accept it, they will come”… a twist on the Field of Dreams quote. As businesses accept bitcoins, consumers will spend. #BitcoinITB
— Elite Email (@eliteemail) March 20, 2014
@itbusinessca for a business, accepting through their website is the easiest way to start. #BitcoinITB
— A. Traviss Corry (@ATravissCorry) March 20, 2014
If you’ve got any great #Bitcoin-related story ideas, please shoot us emails at either [email protected] or [email protected] . #BitcoinITB
— IT Business Canada (@itbusinessca) March 20, 2014
