Around the world, there are only a handful of companies that accept bitcoin as payment for their goods and services. However, oil-importing countries like Denmark might soon see businesses getting BTC due to a steady increase in bitcoin’s value. Click bitcoin revolution for more info about bitcoin mining.
7 ways bitcoin benefits the petroleum industry in Denmark
1. Bitcoin is a cost, time, and energy saver.
Transferring money using traditional banking systems includes paying high fees and waiting for long processing periods. In contrast, sending BTC from one account to another takes about 10 minutes, regardless of the distance between sender and recipient.
As a result, companies from the petroleum sector can save a significant amount of time and money when paying their bills.
2. It protects companies from bad debtors.
Since the world started using money, people have invented different ways to cheat others or send their payment with additional fees attached for “services” rendered by third parties.
Bitcoin disrupts this practice by allowing companies to send payments directly to suppliers with zero fees attached to the service.
3. It is more secure for companies that handle sensitive data.
In addition, since bitcoin transactions are stored in a digital ledger, they can not be erased or manipulated later.
4. Bitcoin is decentralized, which means no government interference.
Companies no longer have to worry about their money being seized by governments or high inflation rates with bitcoin. Instead, they can choose how much they would like to receive for their services and pay suppliers according to the current market price.
5. Bitcoin saves time for companies looking to expand globally.
Businesses do not need to sign expensive and time-consuming contracts with payment gateways to accept credit cards when using bitcoin.
Instead, they can download an app or plugin for their browser and start accepting payments without additional transaction costs.
6. Bitcoin offers companies a quick solution to online fraud.
Sending money using bitcoin is not reversible by third parties unless the recipient decides to send the funds back to the owner. In contrast, credit card purchases can be canceled by buyers even weeks after receiving their items or services from business owners.
This leaves companies from the petroleum sector to lose money if they do not have a way to ensure that payments for their goods and services are irreversible.
7. Bitcoin provides a digital solution for businesses to make in-app purchases.
Using traditional banking systems, companies in the petroleum sector need to create different accounts for their suppliers or clients.
This can make it difficult for them to buy additional equipment for their business when needed, which is why bitcoin makes life easier by allowing them to pay anyone they would like using just one account.
4 ways bitcoin can negatively affect the petroleum industry in Denmark
- Bitcoin is still considered a high-risk investment. For example, the price of 1 BTC increased from $6,000 to $20,000 in 2017 and then back down to $6,500 in 2018 so far. In other words, investing in bitcoin can be very profitable and time-consuming, depending on how many companies are willing to develop their digital currency portfolio.
- Bitcoin value is unstable. For example, since 2012, the value of 1 BTC changed from $50 to $200 and then up to $20,000 in 2017 and down again to $6,500 in 2018. This means that companies accepting bitcoin need to hold onto it for an extended period (or use it to buy products and services with the same value).
- Bitcoin payments can be a challenge for companies in Denmark. Although more and more merchants adopt bitcoin every day, they cannot accept BTC as a payment method for goods and services. This makes it difficult to persuade customers to purchase items using bitcoin and requires companies to risk having unsold products.
- Bitcoin can add unnecessary costs for companies in the petroleum industry. Although there are no fees attached when sending or receiving BTC payments, business owners need to analyze market prices and other factors that determine how much BTC should be bought for a particular product.
Conclusion :
Bitcoin is a digital currency that offers companies in the petroleum industry new opportunities for financing and mitigating risks. Although accepting BTC payments go against current EU legislation, Denmark has already taken steps in this direction.
