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Bitcoin Entrepreneurship: Uses and Challenges

Entrepreneurship is the new age career path for Gen Z, and the global currency, Bitcoin, fits in perfectly with such an evolving economy. The traction increase that BTC gained over the years has made its way towards business enthusiasts and investors. There are a lot of investment opportunities in the blockchain sector as the number of startups is rising rapidly.

Here is a brief overview of why Bitcoin is for the new age of entrepreneurship and how friendly this digital currency is for its investors.

Significant ways of Bitcoin in entrepreneurship

The growth of a startup or any business is primarily attributed to several factors, including the diverse form of leadership, the flexibility you provide in your work environment, and the focus on ever-changing social impacts. Certain vital areas in Bitcoin entrepreneurship include the use of BTC in vehicle investment as well as in decentralized finance.

Depending on your approach to investing and your risk tolerance, the asset class of Bitcoin has the potential to diversify your business portfolio and improve your rate of return. In the current ecosystem, the government and financial sectors control the flow of money; with the decentralized blockchain, a global money system is created that doesn’t need to be interfaced by any government agency or financial system.

Bitcoin impacts entrepreneurship by creating direct and secure methods to trade tangible and intangible assets, protect information, and enhance everyday life.

• Bitcoin payment processors

Demand to adopt Bitcoin is increasing in businesses, but the backdrop is that these payments are still accepted through a third-party supplier. At this stage, the Bitcoin payment processor comes into play, allowing the users to conduct direct transfers from their wallet address. There are multiple benefits an entrepreneur can utilize to enhance the performance of its sales.

Some Bitcoin payment processors like Speed allow you to send and receive payments and enhance your experience with checkout, payment links, professional invoicing, QR codes, wallet apps, and many more. Transactions made through these processors get settled directly into your account or wallet app.

With minimum transaction fees and no additional charges, Bitcoin payment processors are the most convenient way to use the new-age digital currency and incorporate the same into your business.

• Exchanges

When Bitcoin was still making its place in the market, there were few exchanges available, but as of now, several people are working on their exchanges, allowing users to buy and sell Bitcoin through their platform.

Entrepreneurs find it very convenient for themselves as they have to bookmark one of the platforms rather than an entire application. It also helps startups compare multiple assets before going to the one.

The primary way to generate revenue is through the transaction fee for the deposits, trade, transfers, and withdrawals in the exchange. These fee structures differ depending on the policies implied by that exchange or by the government of that demographic where they exist.

The new joiners of the startup find it a favorable way to make transactions with clients, vendors, and associated businesses.

• Bitcoin day trading

New people in the startup world can start day trading Bitcoin with very little capital. To get started, you only need to sign up at a Bitcoin trading platform. Many entrepreneurs have been doing this as a side hustle for extra money for investment. However, one should be aware that it is a high-risk endeavor.

Coming from the fields of various businesses, the new-age entrepreneurs are developing their strategies using multiple platforms. They don’t fear the hustle and are keen to arrange all that benefits their business. BTC day trading is one of those that allows them to get good returns with proper analysis.

• Asset management services

If you are an expert in trading, there are multiple opportunities to assist others. The newcomers in the world of digital finance are providing asset management services where they analyze clients’ risk tolerance based on their investment objectives. Asset managers create portfolios tailored to your requirements.

Some other services that clients will benefit from are Bitcoin financial planning, Bitcoin investment guidance, and financial analysis services.

Challenges to counter in Bitcoin entrepreneurship

The Bitcoin and blockchain industry’s growth rate has shown impressive growth over the past years, as many organizations and governments have accepted its potential to bring positive changes. Even with these effects, starting a Bitcoin venture is not a walk on the cake. Bitcoin is still facing regulatory and financial challenges, which implies the newcomers, too.

Here are some challenges that Bitcoin entrepreneurs are facing:

• Increasing regulations

Bitcoin gets a lot of criticism, which is quite unfortunate, and the roots of this are a lack of understanding and fear despite it being an issue. Due to these reasons, legislation has had downfalls from governments worldwide. As a result, the use and trade of Bitcoin and blockchain-based projects are prohibited in multiple countries worldwide.

• More supply and less demand

When looking at the broader perspective, there is a situation where there is an increased supply of Bitcoin but no demand. The lack of relative demand hinders success for businesses associated with Bitcoin.

This affects the price rate in the market as the currency does not show scarcity, and the value will see a downfall.

• Lack of knowledge about the currency

People have several questions about blockchain technology, but it is still in its early stages and evolving daily. In the world of the Internet, most people have yet to learn what it is and its advantages. This led them to inaccurate and misleading information, creating chaos in the belief among the other Bitcoin holders.

With such an established ideology amongst the people, making them aware of the natural world becomes hard; this leads to the non-acceptance of decentralized digital currencies worldwide.

• Risk and its associated tolerance

Bitcoin no doubt holds the volatility risk, but it is not unstable. Hence, users must plan and make reliable strategies to tackle the market. Entrepreneurs must identify their clients’ tolerance value before proceeding with their services.

This became a significant challenge to counter because a certain amount of risk is there in digital currency, but it depends on your level of financial tolerance.

Things to know as a Bitcoin entrepreneur

Starting a Bitcoin venture business is possible, but there is a lot that a newcomer needs to know before entering this astonishing world of financial possibilities. It is a proven fact that the long-term potential of Bitcoin may come with extensive monetary responsibilities and regulatory compliances. As a BTC entrepreneur, one must start from scratch and develop the business with time and skills.

Here are some things you must know before entering the realm of Bitcoin entrepreneurship.

• Focus on the tech skills

Fundamental blockchain technology is a must in case of technical skills when it comes to Bitcoin. A basic understanding of computer technology is considered primary for decentralized digital currency. As an entrepreneur or owner of a firm, you must make technical claims and need certain technical clarity to back them up.

To fully grasp smart contracts and other emerging platforms, the new players in the market need to be fully aware of Solidity, JavaScript, and TypeScript. Other than this, you should learn how to evaluate the financial market with the help of technical and fundamental analysis for better results in the upcoming years of your venture.

• Understand how to attract venture capital

For early investors, the volatility of Bitcoin can be a financial risk or highly confusing when it comes to trade. In such situations, some show interest in equity financing, and others want investors to put their money as venture capital as an initial investment. If you are interested in creating your token, there is always an initial coin offering route, but this comes with its own legal liabilities that must be considered.

You need the skill of presenting yourself; practicing public speaking can help you in significant ways, as there are chances that some blockchain-based venture capital will get interested in your project.

• Be an enthusiast for innovation and adaptation

The rising technology makes it very important to innovate and adapt to the changes associated with any business. For instance, if a business person started using digital currency in 2010, they only have access to BTC. After that, another significant currency called Ethereum was launched, and the one that adopted this trend is moving forward along with the market.

One of the primary rules that all businesses follow is that when the market changes, you have to move along with it, or else your competitors will, and you will be bleeding market shares. Entrepreneurs must constantly experiment with new revenue streams and offer products and incentives that are needed but not available in the market. This will provide you with highly competitive business exposure.

• Develop some tolerance towards the associated risk.

Blockchain and Bitcoin is an industry of high risk and high rewards. This needs courage as BTC is speculated and vulnerable to swings. Bitcoin showed high crashes in January 2018, with a drop of 65%, and the previous fall of 2013, with a decline of 71%. If such a case arises during the initial days of your business, then it might need years to recover.

To diversify your offerings so you know a currency, keep an alternative asset space encompassing classes that are not correlated with Bitcoin. Entrepreneurs should be risk-conscious, and it will be wise to diversify the revenue stream to outlast the downturns of Bitcoin.

Major companies accepting Bitcoin currently

Worldwide, over 15,000 businesses accept Bitcoin as a form of payment. Many well-known companies currently accept Bitcoin and strive to achieve the top position in the market in their field. Here, we have mentioned some of them.

Here are the top 10 companies embracing the power of Bitcoin in their business models:

  • Microsoft
  • Etsy
  • Twitch
  • Home Depot
  • eGifter
  • SlingTV
  • PlanetExpress
  • Burger King
  • KFC
  • Overstock

Wrapping up

The journey of involving Bitcoin is much more than integrating a new financial tool into your business. Learning and innovation are required to make it work continuously, providing a fresh perspective on financial transactions and operational efficiencies. Entrepreneurs may think that venturing into the world of Bitcoin is just a trend to follow, but it is a proactive step toward adopting the global economy.

Adapting these changes will be transformative, allowing a powerful tool for the growth and innovation of a business.

Speed Team