Home – New Forums Marketing mastery Accepting Bitcoin as payment in my business?

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  • #983600
    plumber4u
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    Hello.
    As the new craze emerge around me I wonder if I should start accepting bitcoin as a form of payment. This could be a big leap in front of the competition and also a good chance to meet with new clients who also explore the same avenues to expend their business.
    Any thoughts?
    Anyone with experience?
    Any of you accepting already?
    And the final biggest question is to the accountants here:
    How does this work with ato?
    Cheers.

    #1143261
    rdenton
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    plumber4u, post: 163839 wrote:
    Hello.
    As the new craze emerge around me I wonder if I should start accepting bitcoin as a form of payment. This could be a big leap in front of the competition and also a good chance to meet with new clients who also explore the same avenues to expend their business.
    Any thoughts?
    Anyone with experience?
    Any of you accepting already?
    And the final biggest question is to the accountants here:
    How does this work with ato?
    Cheers.

    Hi mate,

    Have seen a few business accepting bitcoin lately, but primarily overseas.

    There would be a certain level of risk involved with this, i.e if you received $5,000 AUD worth of bitcoins as payment, and then the next day the market crashes and you’re left with $5 worth of bitcoins.

    It’s currently not a very stable market in my opinion – I’d only accept small payments via BitCoin.

    #1143262
    Past-Member
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    There was a whole lot of media about this recently … here is the Sydney Morning Herald article
    http://www.smh.com.au/technology/technology-news/a-guide-to-bitcoin-20130531-2nh5g.html

    #1143263
    WhatsThePlanDan
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    For me the question would be how are you going to either spend your Bitcoins or convert them to the “coin of the realm”. This is a similar problem to that mentioned about schemes like Bartercard – it’s all well and good being paid in these arbitrary currencies but what do you spend it on and how do you ensure you aren’t left with valueless currency?

    Cheers
    Daniel

    #1143264
    rdenton
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    WhatsThePlanDan, post: 163875 wrote:
    For me the question would be how are you going to either spend your Bitcoins or convert them to the “coin of the realm”. This is a similar problem to that mentioned about schemes like Bartercard – it’s all well and good being paid in these arbitrary currencies but what do you spend it on and how do you ensure you aren’t left with valueless currency?

    Cheers
    Daniel

    My point exactly!

    Perhaps cash it out via MtGox or another exchange as soon as it’s received to minimise the risk of market crash?

    #1143265
    Greg_M
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    I think it’s sensible to tread carefully, but I wouldn’t write it of as a lightweight scam.

    Conventional money is little more than an IOU from Gov printing it, subject to no real backup laws. How much money has been printed by the US, Japan and Europe recently to stay afloat? How much of the poo we’re in today is down to bankers and currency traders using derivatives for leverage?

    In contrast bitcoins are created by an algorithm that slows down as the coins in circulation increase, keeping supply stable. No human hand or Government can alter it. The algorithm gets more complex as the system grows making it increasingly difficult to hack or manipulate.

    Because no government controls it, it’s extremely difficult to trace or tax.

    There’s already huge sums changing hands in money laundering via bitcoin, and the tradeable market for them (including purchases) is growing rapidly.

    I’ve read several articles arguing you are going to have to trade bitcoins, to have any “street cred” if you operate in the leading edge digital space.

    Time will tell.

    #1143266
    OnlineMarketingPrincess
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    I’m with WhatsThePlanDan, where will you spend them?…
    I would steer clear of them. And the chance of crashing is a real problem.

    Is there a reason why you want/need to offer this option?

    #1143267
    Greg_M
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    OnlineMarketingPrincess, post: 163982 wrote:
    I’m with WhatsThePlanDan, where will you spend them?…
    I would steer clear of them. And the chance of crashing is a real problem.

    Is there a reason why you want/need to offer this option?

    I don’t think the chance of crashing is confined to Bitcoin.

    Just ask anyone who trades currencies … seems the Aussie D has dropped pretty radically in the last week or so, not to mention the Euro, or US $ in recent times.

    I’m not advocating using it, but I’d be watching it closely. It offers some distinct advantages over regular currencies in an increasingly borderless world.

    There’s probably no real reason to use them ATM, but there may be sooner rather than later.

    All new ideas are high risk, many fail, but lots of people have made their fortunes accepting the risk of being early adopters of new technology.

    I can remember a time when no one could understand how Google could become profitable.

    #1143268
    Divert To Mobile
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    Im not convinced bitcoin is something to dismiss.

    If I remember correctly near the start it was possible to exchange server processing power in exchange for bitcoins, easy to get onboard but I dismissed it then.

    I also remember the announcement that bitcoin had reached parity with the US dollar, I dismissed it yet again. Now a SMH article says at one point it has reached over 266 USD.

    Steve

    #1143269
    WhatsThePlanDan
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    estim8 does raise a very good point here… like everything you do in your business consider the customer. If you are going to have customers that are likely to be early adopters and therefore likely to pay with bitcoin (ala high tech leading edge services or money laundering brokerage services ;)) then you should consider it. If your customers consist mainly of elderly pensioners then there’s probably little point.

    What I was getting at was not necessarily don’t do it but just consider what you are going to do with them once you have them. If you won’t or can’t do anything then don’t accept them – but if the reverse is true then go for it. I personally don’t know enough about bitcoin to make an informed decision either way (nor do I really have enough interest to find out more at this stage).

    Cheers
    Daniel

    #1143270
    MatthewKeath
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    Divert To Mobile, post: 164027 wrote:
    Im not convinced bitcoin is something to dismiss.

    If I remember correctly near the start it was possible to exchange server processing power in exchange for bitcoins, easy to get onboard but I dismissed it then.

    I also remember the announcement that bitcoin had reached parity with the US dollar, I dismissed it yet again. Now a SMH article says at one point it has reached over 266 USD.

    SteveYeah, I wish I had been doing some bitcoin mining at the start!

    #1143271
    bitcointrader
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    bitcoin is a great way to get ahead of the competition and it’s becoming more and popular.

    The key I think is to create and account on mt-gox and convert your bitcoins into Australian dollars to protect yourself from volaitility.

    There are also exchanges to buy and sell bitcoins in Australia such https://www.bitcointrader.com.au

    #1143272
    darrylvanrooy
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    Personally I wouldn’t go near this because my principal customer base (housewives and motel owners) don’t deal in BitCoin.

    If I was right into the internet – then yes.

    The other issue is tax – I’m not sure on how the ATO rule on BitCoin being a legal currency.

    Bartercard was mentioned before – the ATO has clear rules on how B’card trade dollars are treated. I deal in T$ and have no qualms about tax as a result.

    Unless you convert your BitCoin to AUD$ and then put the AUD$ through your books, you might get into trouble under tax evasion laws.

    #1143273
    Greg_M
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    I was just reading a headline from The Guardian, that came in on my twitter account.

    Apart from “man buys apartment” headline, I noticed in the article, a queue of people waiting for a “bitcoin” ATM.

    Maybe it’s gaining more traction than we give it credit for here?

    #1143275
    Anthony4now
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    I am going to accept bitcoin in my business, i think it is a risk but its not going to go away. Its so easy to transfer coins without any ‘friction’ and more business are accepting it, hence you can buy stuff.

    It also allows people to charge at lower rates due to the extremely low commissions.

    Anthony Salerno | Senior Consultant | SmallBiz Australia
    Software Developers | Software Development | Web Development | Software Consulting | Innovation Designer
    Phone : +613 8400 4191
    Email : 2Anthony (at) smallbiz.com.au
    Web : http://www.smallbiz.com.au

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