Please note that whilst in some cases Bitcoins can be more advantageous when compared to fiat currencies, it is important for each business to fully understand the risks involved before deciding to take on an exposure to Bitcoin. Bitcoin should be considered as a relatively high- risk asset for the following reasons –
- there is no valuation guarantee. The valuation of Bitcoin can fluctuate over a short period of time, whilst this means that it is possible to make a significant gain from your investment, it could also lead to a loss of money.
- transactions are not reversible. Once Bitcoins are transferred, it is only up to the recipient to send the Bitcoins transferred back to you. Therefore, it is important that you only make transfers to businesses or individuals that you know and trust.
- transactions are stored publicly and permanently on the network. This means that anyone can see the balance and transactions of any Bitcoin address even though the identity of the user behind the address remains unknown. It is your responsibility to ensure that you use a different address for every transaction to protect your own privacy.
In view of the above, it is the responsibility of each business to ensure that they have adequate financial resources to bear such risks and that each merchant monitors its position carefully. You should not invest money that you cannot afford to lose, however you cannot lose more than the Bitcoin balance in your account. Moneybite does not provide, and is not authorised to provide, any investment advice. If you are unsure as to your exposure to Bitcoin, Moneybite is able to convert instantly to a major currency.