- January 11, 2020
- Posted by: admin
- Category: Uncategorized
Bitcoin Merchant Account what is it? Why everyone is interested to learn more about it? Well unless you are living in the mountains or under a rock you probably saw the news about Bitcoin and other digital currencies great performance in the digital realm from the past years until today.
Launched last 2009 by a mysterious developer using an alias Satoshi Nakamoto a new form of currency was introduced and that is Bitcoin.
What is Bitcoin?
Bitcoin is unlike any other as it offers the promise of lesser transaction fees compared to those traditional online payment mechanisms and is being operated by distributed experts contrasting to government-issued currencies.
If you are looking for a physical Bitcoin currency, you are wasting your time for a certain reason that there are “NO physical” Bitcoin. The photos you see on the Internet are mere symbols used in representing Bitcoin. What you can only see are the balances kept on a public ledger along with all the Bitcoin transactions being verified by a huge amount of mathematical computation.
What’s truly amazing about Bitcoin is that it is not backed or controlled by any banks or government. With Bitcoin’s great popularity, it triggered the launch of hundreds of virtual currencies referred to as Altcoins.
Investing in Bitcoin
It is believed that digital currency is the future. This is why many are opening or applying for a merchant account for Bitcoin and is offering bitcoin merchant services. As many believe that Bitcoin is a faster, no-fee payment transaction around the globe, although it is stated above that Bitcoin is not backed by banks it can still be exchanged to traditional currencies making it a great alternative to national fiat money and traditional produce like gold.
How does Bitcoin work?
There has been a lot of confusion or misconception when it comes to how Bitcoin merchant account payment service works. Well, that is pretty much understandable since not everyone is into technology. For a fast explanation, new users can compare Bitcoin with a simple email. Once you are registered with an authentic and reliable bitcoin merchant account provider on your personal computer or mobile phone, in an instant you will have your first Bitcoin address. You can disclose your Bitcoin address to your friends so that you can try making or receiving payments.
Here is a snitch: You should be aware that for your every new transaction, a new address is being generated and all successful transactions are being recorded in the public ledger or also known as the blockchain.
What makes Bitcoin Merchant Account important?
I hope that you have understood the whole concept of Bitcoin. If you want your business to start receiving Bitcoin payments, it is essential for you to have a Bitcoin merchant account. By getting a merchant account for Bitcoin your business can now start accepting Bitcoin payments other than your previous cash, credit and debit card transactions.
Aside from that, here are the other reasons why opening the best merchant account for Bitcoin is highly important:
- By getting a bitcoin merchant account for your business you are able to offer another advance mode or payment to your consumers. With the advanced technological advancements taking place, your consumers are more updated and aware of these developments and they would want to try more payment options that are safe, easy and more convenient.
- The bitcoin merchant services, this is one of the services loved by many with Bitcoin merchant accounts, it still allows transaction of any amount and currency across the globe through a smartphone or personal computer depending on the merchant’s choice. With this, you as the merchant can expand your business around the globe and earn more. You can now deal with customers in different parts of the world and will be able to receive payments in a niche of time.
- Merchants with Bitcoin merchant accounts are entitled to lower transaction fees compared to the other payment methods available today. For a standard credit card payment, it will costs you 2-3%. Like it was stated above, Bitcoin is not interfered with by any government institution so expect that the cost of the transaction is very low.
- With fraud issues surfacing today, Bitcoin is the perfect solution. Bitcoin is the most secure payment method today for both the seller and the buyer with the transactions directly recorded in the public ledger. As a Bitcoin merchant account holder, blockchain will provide you with all the records of your transaction and only you have the control over it.
- It’s the easiest mode of payment compared to others. Directly taking place between the buyer and the seller, the transaction can take place within a few minutes. All you need for this is your smartphone or personal computer and an internet connection. This is perfect for your international payments.
- Without a bank, you should be ready to be your own bank. With the Bitcoin merchant account you have full control over your payment transactions. This is way better than traditional currencies that are being regulated by a bank.
- No more worries of chargebacks. By simply using Bitcoin you are protecting your business from fraud that comes from chargebacks. They are instances wherein your customers will buy a product, use it and will ask for a full refund from the credit card company due to false reasons. With Bitcoin, you can say goodbye to chargebacks. Your sale transaction is identified as complete when you receive the transaction from your customer. The best part about this is that you are not required to give away chargeback whenever you believe that a fraud is being involved in the transaction.
What is Bitcoin Mining?
Now that you are aware of the importance and advantage of digital currency such as Bitcoin in your business as a Bitcoin merchant account holder, let us now discuss how you can buy Bitcoin.
In the world of cryptocurrency, Bitcoin mining is very popular even though mining is painstaking which means it’s costly and rewarding at the same time. Merchants are easily magnetized on how it works for the fact that miners are being rewarded for their hard work through crypto tokens.
But before you invest your time and equipment as a bitcoin merchant account holder, you might want to continue reading.
Merchants with Bitcoin merchant accounts are easily drawn by Bitcoin mining because they are rewarded with Bitcoin tokens. But for added information, you do not really have to be a miner to own cryptocurrency tokens. You can always buy digital currency using fiat currency. You can always trade it on an exchange using another crypto. Aside from that, you can earn Bitcoin currency by playing video games or by simply publishing blog posts on platforms that pay their users with cryptocurrency.
It is expected for Bitcoin merchant account holders to take further security measures in order to protect their digital currencies. So, they have been utilizing the presence of wallets and keys.
Bitcoin ownership is being identified down to two numbers, a public key and a private key. To define, a rough analogy is a username (public key) and a password (private key). The one that is called the “hash” of the public key called an “address” is the one exhibited on the blockchain. Using the hash provides you an extra layer of security.
In receiving bitcoin, it’s enough for the sender to know your address. The public key is derived from the private key, which means you need to send bitcoins to another address. The system makes it a lot easier to receive money but it will require verification of identity to send it.
To access your Bitcoin currency, you can always use the e-wallet, which is a set of keys. These can actually take on different forms. It can be from third-party web applications offering insurance and debit cards all the way to QR codes printed on pieces of paper.
But, the most important discrepancy took place between “hot wallets and “cold wallets”. Although both wallets are connected on the internet and vulnerable to cyber hacks, evidence shows that most of the BTC stolen are taken from the “hot wallet”. Even though issues like these arise in digital currency, many still entrust their private keys to Bitcoin exchanges as they believe that they have a stronger defense that way against the possibility of being rubbed in your own computer.
How much a Bitcoin Miner does earn?
Let’s say you already open a Bitcoin merchant account for your business and you are planning to enter Bitcoin mining to earn more digital currencies, how much do you think will you earn? The first thing you should know is that the rewards for mining is being halved every 4 years. When Bitcoin was first launched and mined in 2009, you will earn 50 BTC with just one block and is halved to 25 BTC.
It was halved again last 2016 and this year 2020, the reward size will be halved again to 12.5 BTC. Last November 2019, the price of Bitcoin was about $9,300 per Bitcoin which means you probable earned $116k and more for just completing a block. That is not a bad incentive!
If you want to keep track of your Bitcoin merchant account as you focus on mining, you can always consult the Bitcoin Clock so that you can precisely know when is the halving will take place. But if you are interested in seeing the number of blocks you have mined, they are several sites you can visit including Blockchain.info, and they will provide that information in real-time.
iPayTotal for Bitcoin Merchant Account
As you open a merchant account for Bitcoin, make sure to work with iPayTotal. This prestigious company is a Bitcoin payment processor and is one of the biggest and most reputable providers in the industry. We have earned this reputation for providing the best Bitcoin merchant account at competitive rates. We help our clients established their Bitcoin merchant account through our stable connections with our acquiring partners.
Cryptocurrency especially Bitcoin payment processing has been gaining a lot of popularity these days around the world and iPayTotal is here to help you a start-up with your Bitcoin merchant account.