You don’t often find a Business Acquisition Consultant who is also somewhat versed on Bitcoin, but Digital Currency is already upon us. Here at Pro Biz, we have been welcoming Bitcoin since 2015 and although we seldom are asked to do so, we are among several million businesses, companies, and stores who do so gladly. Let ProBiz help you understand how to use Bitcoin to buy a business.

You see, Bitcoin is simply a ‘store of value’. And its store of value can be used to buy a Big Mac or McRib or Starbucks Salted Carmel Frappe, on the low side, or a Yacht, a private island, or even an entire airline, on the high side.

I hope I didn’t make it sound too easy.  Because it is not.

 The ‘Cryptocosm’ is not an easy place to navigate unless you are already in it. If you have Bitcoin, you can spend it on anything under the sun. Using it as part of your financial statement to qualify, or as part of your cash down payment on a business acquisition is easier than getting a second mortgage on your residence.

If you are unfamiliar or just becoming interested in Bitcoin, however, this article is strictly academic. Perhaps you may find it enlightening. Let’s look at the big picture, the Bitcoin market place.

How Many People Use Bitcoin in 2021?

    Over 100 million Bitcoin wallets with value now exist.

    No. of active daily Bitcoin wallets has reached an average of 1 million.

    An estimated 11% of Americans currently hold Bitcoin.

*Source: Bitcoin Market Journal

How Many People Use Bitcoin to Buy a Business?

That’s a good question. There are no published statistics but I can assure you, if 11% of Americans hold Bitcoin, this is a group that includes strongly many small business owners. If they accept Bitcoin from customers, they will love it from a buyer! In fact, you would uber impress such an owner who has listed his business for sale with a Business Broker.

Who Accepts Bitcoin?

You might be surprised to learn that surveys reveal that 36% of small to medium businesses in the US accept Bitcoin. The most popular companies accepting Bitcoin payments worldwide today are Wikipedia, Microsoft and AT&T just to drop a couple of Big names. That means you have a one in three chance when contacting a Broker that the Business for Sale is familiar and does not think Bitcoin is a scam or just used for money laundering.  In fact, such criminal activity is actually conducted 99% in ‘cash’ (which is truly anonymous) and less than 1% in Bitcoin (because every Bitcoin transaction is recorded on the Blockchain and remains so forever).

Millions of Bitcoin Wallets Make Bitcoin Easy

I stated earlier not to make Bitcoin sound easy. Let me clarify. There is what I would call a ‘barrier to entry.” By that I mean, you can’t just click on your iPhone bank app or on-line stock trading app and buy Bitcoin the first time. Not yet, at least. Although it is not much harder than that once you have established yourself, the first time is a real hassle for newbies. You see, due to all the hype about money laundering, the taxing authorities and others have added regulations that restrict and complicate your initial experience. If you are not patient, all the application clicks can cause you to throw up your hands and say, “Forget it!” Especially if you are a bit technologically-challenged. But if you bear with it, it’s not all that much worse than dealing with your cable company or internet provider.  Hang in there, or get some help from a more ‘geeky” family friend.

Once You Are In, It’s as Easy as a Credit Card

Adoption of cryptocurrency is happening, whether you use Bitcoin or other Crypto as currency as part of buying a business or simply just grocery shopping. Back in 2015, the first thing I did after a small test acquisition of Bitcoin was then to get a Bitcoin VISA. That is a VISA Credit Card that you can use at any place that takes VISA. The difference is, it is funded by the Bitcoin I already had on deposit. This is because Bitcoin is currency.  I was traveling and used it for a restaurant, hotel, fuel and a retail purchase across several states. I’m sure that back then they had no idea it was Bitcoin.  It was simply a VISA purchase and all that happened was that the middleman converted tiny fractions of Bitcoin into cash and then VISA credited the business electronically as usual. The fees were a bit high, but it was a science experiment and it proved the concept to my satisfaction. That was then. Today there are Bitcoin ATMs everywhere and on-line stock brokerages such as TD Ameritrade are working on making it very convenient.

Now That You Know Who Accepts Bitcoins in 2021, Use Bitcoin to Buy a Business

The process of buying a business is covered in more detail in other articles here on our website. Just think of Bitcoin, symbol BTC,  as one more asset you can list, if you have any BTC, on your Financial Statement to qualify.  If you have become familiar and comfortable with PayPal or Square, Bitcoin is just as easy to use and spend.

One other thing about Bitcoin as a ‘store of value.’ Year after year it has increased in value. Yes, it is up and down. But if you dollar cost average, it’s been the best store of value in my experience since 2015.

LAST THOUGHT

I would be remiss if I did not include this last thought regarding gambling. In a larger sense, all of life is a gamble. Every day I am in business is a gamble. What will happen next? What will the next day bring? Only the LORD knows.

Some folks gamble at cards, some on-line, some at casinos and yes, some in Bitcoin and other cryptocurrencies. I do not.

I do not condemn those that do and I am in no way recommending you read this and then buy Bitcoin.

My position is that Bitcoin is a store of value, not an investment, not a speculation, simply a currency that fluctuates, not unlike gold, only it is digital. It is an asset and with assets you can buy things.