Why Bitcoin Is Not For Small Businesses. 4 Ways To Know When To Use New Tech In Your Business

Bitcoin, virtual currency,  has awesome potential. It’s used by people to buy and sell all over the world and etc, etc. It’s great. However, it’s fraught with problems. One of the biggest Bitcoin exchanges Mt. Gox, shut down, US regulators are still figuring out how to deal with Bitcoin and I could go on.

My advice for we small business owners is to NOT jump on every wagon that comes by, filled with new technology that’s not matured and been proven by the market – especially if you have a lot to lose.

Brent Leary spoke about this on an episode of  The 3TechGuys Show

Some of you might want to test accepting Bitcoin – that’s fine – if you are testing it with a small amount of money that you can afford to lose.

We have seen and we will continue to see the coming and going of lots of new, upgraded and different technology – this is GOOD (thank you iPhone, Netflix, search engines and Shark Tank).

My caution to you is to not base your business on new technology and when things don’t work out – then you’re business is in jeopardy.

Always wait until the following conditions happen before deeply investing in any new technology – and even then – start small and test.

  1. If you hear lots of customers talking about using the technology – listen up
  2. Watch what your competitors are and are not doing
  3. See what the main stream media has to say – Small Business Trends, OPEN Forum, Big Ideas Blog, Inc.com, Entrepreneur.com, Wall Street Journal, NY Times, Atlanta Tribune and other publishers have to say.
  4. Test the new technology with friends and long time, loyal customers – let them know it’s a TEST

Focus on loving your customers, getting a great web site, investing in social media and building your business. Let other people test new technology – but keep your eyes open.

2 thoughts on “Why Bitcoin Is Not For Small Businesses. 4 Ways To Know When To Use New Tech In Your Business

  1. John Prescott

    The ONLY risk from bitcoin is when you own it/hold it, as its price could go down.

    Merchants need carry no such risk to use bitcoin. Employ a 3rd party processor (bitpay, coinbase, coinkite, consimple, others) to receive the bitcoin and give you cash

    Benefit 1/ALWAYS: Negligible interchange fees, compared to credit cards.

    Benefit 2/ALWAYS: No risk of bad payers (can’t do that with bitcoin).

    Benefit 3/ALWAYS: Get paid cash via ACH to your bank – FAST. Not several days later.

    Benefit 4/Some time: If the merchant’s upstream vendors give discounts for getting paid in bitcoin (because benefits 1, 2, amd 3 ALWAYS apply to them as well), then these discounts go straight to the bottom line.


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