Recently, Entrepreneur Magazine published an article talking about cryptocurrencies like Bitcoin and why small businesses should consider accepting them as a form of payment. If you own a catering or food service business, this can be particularly beneficial for you. Capitalization of a catering business, restaurant, or anyone in the food service industry is one of the biggest problems we face. By investing in bitcoin, we can alleviate some of the burden of long term dry spells of income while continuing to fund ongoing expenses.
The Evolution of Bitcoin in the Global Economy
Bitcoin has grown almost exponentially since it’s inception in 2009. In 2016, the value of Bitcoin increase 200%. So far, in 2017, the value has grown 600%. Also, if you take a look at the growth of Bitcoin ATM’s around the world, it’s clear to see the increasing demand for the technology.
One of the things that is most appealing about Bitcoin is that it’s global currency. In 2016, Japan began to recognize Bitcoin as the same as their physical currency. South Africa quickly followed suit and opened markets that were accepting Bitcoin as forms of payment. Investing in Bitcoin is being practiced by more and more people each year.
Online Retailers Are Starting To Invest In Bitcoin
And if you think Bitcoin is just for the technogeeks out there, you are sorely mistaken. Although bigger online retailers like Microsoft and Dell are already accepting Bitcoin, smaller shops like Steam (where you can buy video games), Expedia (A travel company), and Dish Network are now accepting Bitcoin as forms of payment. The millennial generation is starting to expect companies to accept Bitcoin as payment and it’s important you learn everything you can to add this service to your arsenal if you want your business to exist in the 21st century.
First Steps To Getting Bitcoin
Before you can consider investing in Bitcoin, you need a Bitcoin wallet. Any Bitcoin you own will exist in a Bitcoin wallet. This is a combination of a long string of characters (which is called your Bitcoin address) and a private key. The private key should never be shared with anyone and is used to encrypt your Bitcoin transactions.
For larger catering and food service companies who deal with 6 or 7 figure incomes, you should consider investing in a hardware wallet like a Trezor or a Ledger. These hardware wallets private keys exist ONLY in the hardware device themselves and are virtually unhackable. Online wallets like blockchain.info and Exodus store their private keys in such a way that they could, potentially, be compromised.
How Bitcoin Investing Works
Basically, if you want to start investing in Bitcoin, there are a couple of options:
Buy and Hold
This strategy basically means you go to a Bitcoin exchange (much like a stock market exchange) and convert paper money (Fiat currency) into Bitcoin. You then transfer your Bitcoin to your wallet and let it sit there. This will increase the Bitcoin value over time as the price of Bitcoin increases.
Buy and Trade
This strategy requires you to use that exchange to periodically sell your Bitcoin when it peaks in value and buy it back when it drops in value. This process requires a significant investment of time and energy and may not be the best for a budding restaurateur.
There are company, however, like Bitconnect and USI-Tech that will use auto trading software to trade for you. If you are willing to accept a certain level of risk, you might want to consider one of these services as well.