There is a common misconception among businesses and consumers that taking a position in Bitcoin and other Cryptocurrencies is cost prohibitive. They also believe that one needs to make a large investment up front in order to buy the asset. This misconception even prohibited and kept me from entering the market way too long because of fear and misapprehension. But let me tell you how you may overcome it.
Bitcoin, as an example, is equal to 100,000,000 Satoshis or “Sat’s” (the smallest unit of the currency), named after Satoshi Nakamoto, the pseudonym of the person or persons who developed Bitcoin. Once you discover the common approach of “Stacking Sat’s” in taking a position in Bitcoin, you will discover how easy it is and what a low barrier of entry owning Bitcoin really is for all. My first purchase was for five dollars that allowed me to own a partial amount of bitcoin by purchasing a small quantity of Sats. Overtime you can purchase fixed or variable quantities of Sats over a defined period of time.
Here are three easy ways for businesses to begin taking a position in Bitcoin, and other crypto assets. Because of the daily price fluctuation I recommend setting aside a position that will not need to be liquidated for a longer period of time.
Converting Tips to Crypto.
I recently met with a coffee shop owner and roaster who is doing just that. He purchased bitcoin with the tips and distributed them to employees. This could be a bonus for individual employees as a savings tool in order to beat inflation. Businesses may offer the service on behalf of their employees as a way to attract talent in a tough labor market.
Cash to Crypto
If your business is still handling cash this is an excellent way to offset the cash handling charges and flip into an asset class such as Bitcoin that historically has been going up by 200% year over year. You may start with any percentage of your cash revenue that you feel comfortable with and adjust accordingly once you have a feel for the market as it relates to your cash flow.
Offering Discounts to Customers for Paying in Crypto
You can offer customers a discount of up to 10%-20% if they pay you in crypto. Obviously you need to do proper budgeting to allow the longer term appreciating asset to work its magic on your balance sheet. However this is a sure fire way to begin taking position without disrupting your business operations. You will be very happy you went down the road.
I highly recommend starting small but being consistent with purchasing crypto over a repeated period of time. You can set a dollar cost averaging (DCA) amount that buys crypto currency of your choice. Or alternatively, you can also do a Satoshi Cost Averaging (SCA) accumulation of fractional Bitcoin no matter the cost.