How to Start a Bitcoin Business
Often, businesses face challenges during their start-up phase, things are tougher especially in foreign business start-up. From getting your business idea off the ground, raising finance, to opening bank account, and managing the process of incorporating your company, there are quite a number of obstacles you are likely to face in the process of starting a business in a foreign country.
When starting up abroad, it is important to consider how you will translate to the locals. What frequently goes wrong, it’s the bank account difficulties that turns business away from a country. With that in mind, the idea of bitcoin has paved a new way of business transaction ever since the birth of the idea.
What is Bitcoin?
The idea was a brilliant one. In 2008, an anonymous figure, Satoshi Nakamoto, conceptualised the idea of bitcoin. Bitcoin is defined as a peer-to-peer currency that runs on a system, which allows transaction without a third party. Also, it is a decentralised virtualcurrency, meaning it is not issued or regulated by any governments or authority. Therefore, you can spend it anywhere in the world as long as the receiver accepts bitcoins.
The brilliant idea has evolved into a larger scheme of things when people started to discover the benefits of bitcoin. Bitcoin topped $1,000 for the first time in three years as 2017 trading begins, and has sparked interests and attentions of many. The developing ecosystem and growing media attention have increased interests in bitcoin and it’s considered as a game changer in current business world.
The Magic of Bitcoin
The magic of this virtual currency is that you own it. Unlike the other currencies that are regulated or issued by banks, no central authority has control, and so a bank can’t take it away from you. What’s more, it is inflationary. Therefore, inflation won’t be a problem.
Furthermore, bitcoin doesn’t require a conventional banking system because bitcoin is entirely decentralized. In other words, you need to trust no one to handle your money properly along the way. As such, it is possible for entrepreneurs to avoid passing transactions through a bank and hence costs associated with exchange rate differences can be avoided.
Starting a Bitcoin Business
The idea has paved a new pathway for foreign business start-up, even in country like The Cayman Islands, Malta and neighbouring European countries. The Cayman Islands is one of the most well-known tax havens in the world. Unlike other countries, the Cayman Islands does not have a corporate tax, making it an ideal place for multinational corporations to expand their business. Another tax haven, Malta, has long drawn foreign capital due to its attractive low tax rates. In other words, if you want to traipse into a foreign market with attractive tax rates, Europe has a lot to offer.
The key benefits of bitcoin and the European tax havens are the magical elements that shape the future of doing business abroad. Imagine this, you are starting a business in a tax haven with the decentralised virtual currency, how nice it would be to run business without the red tapes and pitfalls that might weight you down!
If you are thinking of starting a bitcoin business, 3E Accounting is always here ready to provide a one-stop solution in your company incorporation and business setup!