What SMEs Need to Know About the Bitcoin Bubble

What SMEs Need to Know About the Bitcoin Bubble

Lee Murphy

Founder & CEO at Pandle

Views 674

What SMEs Need to Know About the Bitcoin Bubble

07.06.2017 12:30 pm

By their very nature, cryptocurrencies are encrypted, but this doesn’t make them any more secure than dealing in normal currencies, as many people may think. There is no regulation or policing that can investigate theft for you, so it’s important to get advice if you’re looking to to trade in or receive payment - cryptocurrencies are not the exception to the rule when it comes to monetary scams, and should not be treated as such. Bitcoin payments are also irreversible, and create an extra level of exposure that people may not be aware of. It’s important to act with caution and only do business with people and companies you know and trust.

If you do have a client who wants to pay you in Bitcoin, move ahead only if you have the appropriate systems in place, and do not consider the payment as automatic. Exchange rates with cryptocurrencies are incredibly volatile, so making or accepting payment this way can cause a loss when converting back to your standard currency.

Finally, despite what many people think, although cryptocurrencies are not official currencies, you still must adhere to tax and regulatory laws that apply to your business. Avoid falling victim to this pitfall and do your homework on how this will affect your business. If in doubt, consult advice from your accountant.

Latest blogs

Darren Capehorn Icon Solutions

Unbanked and Unconnected: Supporting Financial Inclusion Beyond Digital

Many of us take it for granted, but accessing basic financial services is fundamental to our economic and social development. It is hard to ‘get on’ if you are forced to hide life savings under the mattress, or rely on predatory loan sharks for Read more »

Konstantin Demishev Archer Software

How Machine Learning Helps Fintech Companies Detect Fraud

Machine learning (ML) is one of the most discussed technological tools, and if in the past only a few companies could use it due to high cost and lack of resources, today many industries use ML. The financial sector is not an exception and embraces Read more »

Nish Kotecha Finboot and Bryan Foss, NED, Visiting Professor at Bristol Business School and member of the FRC Audit & Assurance Council

How Listed Companies Can Use Blockchain to Prevent Auditing and Reporting Malpractice and Avoid Scandal

Not too long ago, there was very little to link Wirecard, the disgraced payments platform in Aschheim, Germany, with Boohoo, the fast-fashion online retailer in Leicester, England, but both have recently been embroiled in high-profile scandals. Read more »

Leon Muis Yolt Technology Services

The Time for Financial Services to Become Truly Digital is Now

The financial services industry looks set to change dramatically over the next couple of years in response to COVID-19. The pandemic has certainly highlighted some inefficiencies and weak spots in current processes for many businesses, such as those Read more »

Granville Turner Turner Little

The Lockdown Money Revolution

Many Brits have found that lockdown has been beneficial for their money, having cut back on personal spending and managing to put away some extra cash. According to eToro, Brits with unspent discretionary income are set to accumulate £75.5bn in Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel