Bitcoins have generated big press lately. And why not? They’re a virtual means for people and businesses to pay one another on the Internet. As Entrepreneur Magazine explains in a newly released story, these virtual coins are traded between people online with no trace being remaining. These virtual coins also don’t pass through any banks or financial institutions. And this raises the big question: Should your business accept Bitcoin payments? Here, according to Entrepreneur, are the big questions you’re likely to have regarding this virtual currency.

 

What are they?

Bitcoins aren’t real money – as Entrepreneur says, they are simply pieces of computer code – but they are used as real money by a lot of online vendors. Needless to say, several of these vendors are disreputable. But more “real” online businesses are beginning to take this currency. Entrepreneur lists such reputable vendors as Reddit, WordPress and Etsy as accepting Bitcoin. Bear in mind, too, that Bitcoins only exist after individuals purchase them with real, old-fashioned money.

 

Safety

Like all online transactions, there are certainly safety risks with taking Bitcoins. These transactions are protected by way of a process called public key cryptography encryption. That doesn’t mean clever criminals can’t hack these transactions. Businesses also need to be wary of malware that steals Bitcoins.

 

The benefits

Why would any company choose to accept Bitcoin payments? For one thing, these payments have no credit card or bank transaction fees. Additionally they aren’t subject to taxes. And when more online vendors are accept Bitcoins, it may be a trend you don’t want to miss.