Bitcoins in the purchase and sale of products

Bitcoins in the purchase and sale of products

What happens today is that many of the users who own Bitcoins around the world -especially in Latin America-, use the currency more as a form of investment, waiting for its appreciation than to buy products because there are still few establishments that accept payments in Bitcoins.

Some visionary entrepreneurs and marketers see an opportunity there. Although the owners of Bitcoins are not so many, the possibilities they have of spending them are few. In addition, the more services offered with this form of payment, the more people must join.
Advantages of accepting Bitcoins

Still not convinced to accept Bitcoins in the sale of your products? Find out below the main reasons to change your mind.
Pioneers

There are several lines of action in which no establishment accepts Bitcoins yet. Being the first can mean a significant differential. It is a great way to get spontaneous means of communication to promote your brand.
New customers

As we mentioned earlier, many have virtual currencies but do not know how to use them. Therefore, it is possible that when they become aware of the possibility of paying for a certain service with Bitcoins, they become new customers simply because of practicality.

How are those users going to know your business? Sites such as CoinMap, SpendBitcoins, BitcoinSearchEngine, and others offer lists of the services that accept payment with the cryptocurrency since there is always someone looking for those establishments.
Ease and price

You may wonder why starting with this virtual currency story instead of simply accepting a traditional online payment. The advantage of using Bitcoins is that it is not necessary to install an e-commerce system (which is expensive) or pay a commission, as in intermediary services such as PayPal.

The future: Bitcoin at $ 100,000?

As someone who has witnessed this evolution firsthand, Streng remains a passionate advocate for its long-term value. When asked if Bitcoin will reach a valuation of $ 100,000, he answers yes, even much more, but that it is impossible to make short-term predictions of Bitcoin.

“From the beginning, I knew that in the long run, Bitcoin would be very binary. One scenario is that Bitcoin will not exist. The second is that it becomes much more valuable. The scenario that Bitcoin reaches zero seems much more unlikely,” says Streng. “Meanwhile, with only 2.5 million Bitcoins remaining, a lot is possible from now until the end of 2021.”

Following the conversation with Streng, Rohit Hemdev, Tauro CEO, and the Dubai YPO member who hosted the event added: “Business leaders are lifelong learners, and Bitcoin is emerging as one of the best investment opportunities in the markets. Financial But for many investors, intangible assets remain a black box. This event helped us understand how cryptocurrencies are intertwined with blockchain technology and mining and take advantage of investment opportunities as blockchain technology regains momentum. “

Bitcoin is a virtual currency that emerged in 2009, at the time of the global financial crisis. The main difference between Bitcoins and other forms of money is that no financial institution regulates and mediates transactions, which are carried out from user to user. Some say that the trend is that their use to purchase products is progressively intensifying, which means a good opportunity for entrepreneurs.

According to the CoinDesk site, in the week of January 5, 2015, the number of transactions that involved using the currency was 96,890.43, and the total amount of Bitcoins in circulation was 13,703,039.29. In the same period, in 2012, the number of transactions was 6,123.00, and the quantity in circulation in the world was 8,040,842.86.

Bitcoins can also be considered cryptocurrencies, those whose operations are protected with cryptography. To buy them, it is necessary to have a virtual portfolio, which can be created, free of charge, in applications, the web, or in a computer program. The virtual currency is acquired from other users or at an exchange house that carries out this type of operation – an exchange call.
On June 9, the Congress of El Salvador approved that bitcoin become a currency for legal use, and the entities in charge prepared the regulations that will take effect next September.

Faced with this panorama, neighboring countries such as Guatemala remain alert to the effects that the use of this cryptocurrency will have, and from the business world, they have expressed concern and skepticism about current commercial relations and that in some way, they must adapt and even receive bitcoin as a means of payment.

Eddy Pérez, director and tax partner of Grant Thornton Guatemala, commented during the discussion “Bitcóin in El Salvador, What does it mean for the regional economy?”, Organized by the Chamber of Industry of Guatemala, that on the tax issue, cryptocurrencies are digital representations of value and can be traded and operated as a traditional currency on a blockchain.

However, he recalled that the Superintendency of Banks said last February that cryptocurrencies were not going to be considered as currencies in the country; therefore, from the tax point of view, if an exporter sells his products or services abroad, he must receive foreign currency to be able to document them and request the return of the tax credit to the Superintendency of Tax Administration.

Pérez stated that the solution for exporters is to acquire a wallet, or bitcoin purse – a tool with which users store and manage their cryptocurrencies – where they can receive them and immediately exchange them into dollars, to demonstrate that they entered the Guatemalan financial system, because yes they remain in the purse and do not demonstrate the nationalization of those currencies, the SAT will surely not accept exports and will ask for 12 percent of the value-added tax (VAT) on those transactions.

Another tax consideration was that the means of payment above Q30 thousand must be bankrolled or used to individualize the beneficiary. Every time payments are made for those values, and the banking system must support the deductibility of expenses and have the right to tax credits.