ADVANTAGES AND CHALLENGES OF INCORPORATING VIRTUAL CURRENCY INTO SMALL BUSINESSES

This research paper discusses my findings in assisting Lake Missoula Tea Company become one of the first businesses in Missoula, Montana to accept Bitcoin, a virtual currency, as payment. First, I will offer a background of how Bitcoin technology works, and draw on notable historical issues to better understand its evolution, leading up to how it is currently used. I will explore possible economic benefits realized through utilizing Bitcoin in a business environment, such as transaction fee savings through substitution of traditional credit card processors, alleviating security and privacy issues, as well as publicity and marketing benefits. Serious roadblocks of the applicable usefulness of Bitcoin for a business are also discussed, based on my experience with Lake Missoula Tea Company and other examples. I hope to educate the small business sector on the risks and rewards of virtual currency, as well as enabling them to properly accept and process it as payment for goods or services