Cryptocurrency and the Home Based Business

Executive Brief

As a small business begins to grow, it becomes part of the engine of job growth for the American economy. What many people don't know is that over half of these small businesses are home-based, and somewhat more surprising is the fact that even though they operate from home, only twenty five percent of them are run solely by the owner with no outside employees. These home-based small businesses are an important contributor  to the health of the U.S. economy, and cryptocurrency can play a role in their growth.

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A 2012 survey by the United States Small Business Administration (SBA) revealed that over fifty percent of America's twenty eight million small businesses are home-based. This vital component of the economy brings money into local communities as well as badly needed employment opportunities.

One of the biggest appeals of starting a business from your home is the low cost of startup. Venture capital is almost never an option, with less than one in a thousand new businesses receiving funding. As a result, most new businesses are funded either solely by the owner, or with the financial help of friends and family. Limited funding usually means there is little available for things like paid advertising campaigns.

Accepting cryptocurrencies like bitcoin can open up new and even free advertising opportunities. It opens up a new global market and customer base for your business, shared via social media and other internet sites by people involved in digital currency. You may find your business name in a news article or blog post just because you are now accepting a particular cryptocurrency. There are various merchant directories available - for example Bitcoin Yellow Pages allows you to list your business for free as long as you accept bitcoin for payment or promote it in some way.

There are many other benefits to accepting cryptocurrency such as protection of customer financial data and chargeback fraud protection for merchants, but the most significant perk may be the reduced fees paid. While PayPal and credit card merchant accounts are currently a necessity for any business that ships goods, they come with a high cost to the owner's bottom line. A long list of fees for these services, including those for chargebacks, can easily rob the merchant of four or five percent or more of their sales. The fees and currency exchange charges for international sales can be much higher. Aside from hefty fees, there are other issues that are less than ideal. It can take a few days to have the funds cleared to your bank account and dealing with customer service departments when you have problems can be a real headache. In stark contrast, the fees for using cryptocurrency are minimal, transactions are finalized in seconds or minutes, and there are no chargebacks.

Digital currency is the future of commerce and has a lot to offer the home-based business owner. Anyone with a mobile phone or internet connection can be their own bank and start accepting bitcoin and other cryptocurrencies. Even people in remote locations without banking access will be able to start their own business, opening up many areas to economic inclusion.

Author: Chase Green

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