How Do Bitcoin Price Fluctuations Affect Local Businesses?
You don’t need to be a cryptocurrency expert to understand that the price of Bitcoin is highly volatile.
From being worth virtually nothing when launched, each coin reached a record high of almost $20,000 in December of 2017 before falling back to under $6,500 at the time of writing.
These huge changes are good news for savvy investors who know when to buy and sell the currency. However, what about the businesses in Norfolk that deal with Bitcoin? How are they affected by these changing prices?
Business That Invest in Bitcoin
One of the fascinating things about Bitcoin is that some people view it as a currency while others see it as an investment opportunity. Since this digital currency is held anonymously, it is impossible to know how many people in Norfolk own these coins.
With over 23 million Bitcoin addresses registered, it seems safe to assume that there are least some investors from this part of the world, though. There are still strongly divided opinions on whether Bitcoin is a good investment or not.
What is clear is that it is the kind of volatile investment that can suffer wild price swings in short periods of time. This makes it an exhilarating way to try to earn a fortune but perhaps not the sort of investment that is ideal for essential company funds that may be needed at short notice.
Businesses That Accept Bitcoin as Payment
The next type of Norfolk business that is affected by Bitcoin is the sort of company that accepts Bitcoin payments. At the moment, the number of businesses in this category is limited in number but is expected to grow over time.
For example, if you want to spend these coins in Norwich, then the White Lion pub was an early adopter. Back in 2013, they become one of the first British businesses to accept cryptocurrencies. You can also pay with Bitcoin at Sash Window Preservation in Norwich.
These businesses need to keep a close eye on the current Bitcoin price. This allows them to set their prices accordingly and also to decide when to sell the coins that they have received from customers.
For any business planning to use Bitcoin, it is important to understand how to quickly and easily sell the coins. In this respect, a site like Coinlist can be useful, as they list news, reviews and other information that helps visitors to get a grip of the current market situation.
The Buzz Created By Price Changes
There is no doubt that the fluctuating price of Bitcoin plays a part in the buzz that keeps this currency in everyone’s minds. The almost-constant news stories about the price rising or falling act as great publicity for the Norfolk businesses that deal with this currency.
A recent success story comes from the Norwich firm Gift Off. They have taken advantage of the buzz around cryptocurrencies to offer digital gift cards in exchange for Bitcoin, which they then sell on an exchange.
We can expect more Norfolk businesses to get involved with Bitcoin and other digital currencies in the future. If they can avoid the risks, there are some big opportunities waiting to be discovered in this area.