Bitcoin and Your Website

Thinking of accepting Bitcoin as a payment option? Here are some facts you need to know first.

When you try to research online about Bitcoin, you’ll notice that it can get technical very quickly. Sometimes people even wax poetic about its many benefits. But if you’re running an online store and you’re thinking of accepting Bitcoin as a payment option, then you probably have more practical concerns starting with, how can I use Bitcoin on my website?

Here are key facts you need to know about Bitcoin:

1. Bitcoin is designed to have no central governing authority, and the records are kept in the various computers of all Bitcoin users. So in a sense, it’s completely transparent, and the payments made and accepted by a particular account can be tracked.
2. Yet at the same time, it’s also designed to be completely anonymous. Since there’s no governing authority, you can buy and sell items anonymously. If you want your website to follow taxation rules, then you’ll have to convert your money into traditional currency like dollars.
3. If you’re running a website and you want to accept Bitcoin payments, you need a Bitcoin merchant solution to process the payment. It’s a bit like having software to accept credit card or PayPal payments. There are plenty of these you can get them online of course. Some of these are all-in-one solutions, as you can use them to accept credit card payments too. These options can guide you through in greater detail.
4. Using bitcoin requires you to get a virtual wallet, which in many ways is like a bank account. You use the wallet to make and accept Bitcoin payments.
5. Just as you can convert Bitcoin payments you receive to US dollars (and other currencies), you can also convert your traditional money into Bitcoin. The exchange rate is quite volatile, however. A few years ago 1 Bitcoin was worth $0.06 but it once went past $1,000. As of August 30, 2016, the value of 1 Bitcoin is $575.42.
6. A much easier way to use Bitcoin payments is to accept them as payments for gift cards. The gift cards can then be used to pay for your goods and services you offer on your website. You can then just track the sales of a single SKU.
7. You can also make things easier by enabling Bitcoin users to pay by going to a special URL on your website. They can just enter the invoice number to get the Bitcoin address they need to use for their Bitcoin client.
8. Whenever possible, you should use a brand new Bitcoin address for every invoice, and the address should be used only once. This removes any sort of ambiguity for the transaction. It’s clear to the customer that they’re making a specific payment for a specific invoice.

Just so you know, your website won’t be the only one that’s accepting Bitcoin as currency for goods and services. Well-known websites use it too. Microsoft accepts Bitcoin payments for apps and games you can find in Windows, Windows Phone, and Xbox. Dell, the computer manufacturer, also accepts Bitcoin payments online. Even online casinos have this option. Pretty soon, Bitcoin payments are going to become more mainstream.