Cryptocurrency is a digital currency or asset that relies on encryption technology to transfer value over the Internet. Cryptocurrencies like Bitcoin operate independently of a banking system and can be used in many countries as a store or exchange of value like cash. The most common use of cryptocurrency is buying and selling goods and services online.
Cryptocurrency represents a new way for small businesses to accept customer payments and even pay vendors or suppliers. However, cryptocurrency is relatively new and many businesses don’t yet know what to think about it. To help, this article discusses the ins-and-outs of cryptocurrency, including how to accept it, the benefits and drawbacks, and the tax implications for small businesses.