The Worst Things a Company Can Do to Bitcoin
by Keith Andre | Dec 4, 2014 | Crypto News
There has been a multitude of new companies on the Bitcoin scene over the last few years, a few of which have done nothing but tarnish the cryptocurrency image. Still it seems as though Bitcoin is holding strong with generous support from its growing number of users and a strong development team. There has even been criticism from digital payment processors about Bitcoin, which may mean that these large corporations are starting to fear the true digital currency. These are some cryptocurrency related things companies can do.
1. Lose (or steal) all of your customers’ money forcing your company into bankruptcy
The collapse of the massive Bitcoin exchange Mt. Gox and the disappearance of around 800,000 Bitcoins was a huge hit to the cryptocurrency world. For the first time everyone realized that their money can disappear with a trail right on the blockchain, with little or no hope of getting it back. Bitcoin is on the path towards government regulation and acceptance by the government as a valuable asset, which should help prevent incidents like this in the future. However, it isn’t impossible yet as the Mintpal cryptocurrency exchange recently had a similar experience, claiming to have lost a lot of customers’ funds right before filing for bankruptcy. These cases, unfortunately, mean that in order for cryptocurrencies to survive and be usable for the average person, proper government regulation will be required.
2. Fight Bitcoin, use Bitcoin to your advantage
Companies like Visa, Mastercard have been criticizing Bitcoin and making claims that Bitcoin is used to support terrorism and criminal activity, which also would be nearly impossible with proper regulation. Western Union even filed for copyright infringement because of a Reddit post that used their ad next to a similar image showing Bitcoin’s capabilities. These companies should be incorporating Bitcoin into their already massive payment system instead of fighting what is almost certainly a losing battle. The Bitcoin ad’s parody of Western Union showed that Bitcoin transfers money far better than Western Union itself. The Western Union’s reaction only helped to promote Bitcoin and played the company a bad joke.
3. Convert all of your Bitcoin income directly to local currency
Many companies accepting Bitcoin as a form of payment are directly converting all or almost all of it into local currency right away. While it is understandable as most of the companies can’t pay their bills or suppliers with Bitcoin. Instead, these companies earning Bitcoin through payments could be paying employees with Bitcoin, automatically and immediately upon them clocking out every day. They could also convince their suppliers to accept the currency and automatically add products to their order upon their purchase. These steps would help to alleviate some of the downward pressure on the price of Bitcoin and distribute it to a much larger portion of potential users, allowing even more people to learn about Bitcoin.
These are just a few examples of what not to do about Bitcoin as a company. Fortunately, the list of successful businesses involved in or accepting Bitcoin is much larger.
Want to add the list? Share ideas in the comments!
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