If you’re asking about how to start a bitcoin business, you’re in good company. Venture capital firms have poured more than $1 billion into bitcoin-related businesses to date. Bitcoin evangelists say that bitcoin tends to attract entrepreneurs because it originated from a brilliant entrepreneurial idea. About eight years after the bitcoin experiment was initiated by the mysterious creator known as Satoshi Nakamoto, entrepreneurs are still imagining all the different things we can do with bitcoin.
Entrepreneurs want to invest in bitcoin business because it represents an enormous potential to positively disrupt the status quo. “The Wall Street Journal” says the last major disruption in payments technology occurred in the 1960s with the introduction of credit cards. Although the bitcoin community continues to need developers and technical experts, the growth in bitcoin business may happen when new business owners reimagine art, music, or charities and bitcoin.
Who Benefits from Bitcoin?
Bitcoin is a natural fit for members of the financial services industry’s position of middlemen, agents, and brokers. It’s also a good fit with infrastructure, wallet designers, regtech, and payment processor bitcoin businesses. Venture capital firms such as Credit China Fintech Holdings, Utah Governor’s Office of Economic Development (GOED), Pantera Capital, Fintech Collective, Thomson Reuters, Digital Currency Group, Draper VC, and Blockchain itself are investing in seed to Series D financings of bitcoin business around the world.
Bitcoin Business – The Basics
Entrepreneurs who are considering how to start a bitcoin business have the option of creating a business-to-business (B2B) or business-to-consumer model (B2C). If you’re strapped for capital, there’s lots of room for bitcoin business selling to consumers.
To create a bitcoin business, write a bitcoin business plan. Answer questions such as what will your bitcoin business do? Who are your customers? Consider your capital needs. If you’re a fledgling entrepreneur, use a simple bitcoin arbitrage to capture the discount between product costs and sales:
Step 1: Buy products to sell to customers at a discount. Bitcoin community sites like Purse allow users to settle purchases in btc.
Step 2: Resell products on large traditional auction sites, such as eBay, OpenBazaar, Craigslist, etc.
Step 3: Reinvest your profits by purchasing more bitcoin on an exchange.
As you can see, the simple bitcoin business plan is an arbitrage concept. Buying something at a low cost and reselling it at a higher cost is the goal of the arbitrageur in any market.
Location is less of a factor for your bitcoin business plan. If there’s something you want to sell and you have a forum in which to sell to bitcoin-paying users, get started now. More bitcoiners want new ways to spend money for the goods and services they want. As your business grows, know that investors are putting money into bitcoin business in the UK, Africa, Singapore, Taiwan, Europe, and San Francisco, New York, Cambridge Ma., and Marbleton, Ga. in the United States. In the next section, we review at least 10 ways to start a bitcoin business.
10 Tips for Starting a Bitcoin Business
If you’re a bitcoin evangelist but you don’t know how to start a bitcoin business, here’s some information to point you in the right direction:
1. Know that bitcoin adoption is growing at an increasingly rapid rate
More people using bitcoin technology want to opt out of the traditional financial system. Even more people want to find a way to live sustainably on btc, at a discount. Whenever you’re thinking about growing a bitcoin business, think about “untapped” regions and how to fill a need.
2. Launch a company that accepts bitcoin and other digital currencies
If you’re a service provider, such as a website designer, you could sell services and request payment in btc. If you’re a talented developer, you could create a btc multi-vendor marketplace (like eBay), a btc-powered social network (like Facebook), or an online gambling or sports bet site.
3. Become a bitcoin broker
Buy btc in your own account and sell coins at a favorable price to other users. This is making a local market in bitcoin.
4. Operate a bitcoin teller machine
Operate a Bitcoin Automatic Teller Machine (ATM) if you’ve got sufficient capital to buy and service ATM machines that allow users to translate fiat currency into btc and vice versa. The reason to operate bitcoin teller machines is simple. Charge fees between five to 10 percent per transaction (or more). Where you put the ATM is critical.
Because most ATM operators want to protect the investment, it’s kept behind closed doors, such as in a café or brick and mortar store, and available to users only during business hours. If you’re willing to operate a freestanding ATM that’s available to users around the clock, charge higher fees but expect damage or theft of the asset. According to the “Financial Times,” many bitcoin ATM operators report ROI of initial investment in less than 12 months. ATMs are small so, if you must rent a location, it won’t cost a lot.
The major costs to start the business include cost of ATMs and stocking and servicing the machines in your market. BitAccess, Romit, and Skyhook are examples of btc ATM providers. If you want to buy a used btc ATM or you’re looking for an existing ATM in your area, check out CoinATMRadar.
5. Start a Bitcoin Vending Machine Business
If you live in San Francisco, Boston, or New York, starting a bitcoin vending machine business might make good financial sense. Many people like to buy snacks and other items from a vending machine. Few people carry enough change. Consider a vending machine that accepts bitcoin, credit, and debit cards to give customers maximum options. Like the bitcoin ATM business idea, you’ll need some capital to get started. You’ll also need to service the machine yourself. If the idea intrigues you, retrofit an existing vending machine with BitSwitch or Kryptomech to accept bitcoin.
6. Dream White Label Business Ideas
7. Run a White Label Casino
If you enjoy online games and wish for a way to open your own online casino, SoftSwiss, KoCurrency Lottery, and Coin Gaming are a few ways to get started. Offers range from a full turnkey site to games you can offer on your own site.
8. Offer a btc debit card
E-Coin already offers this white label service. Consider the potential of a bitcoin ATM network and your btc brand debit card.
9. Mine for bitcoin
Bitcoin mining has become more challenging since bitcoin’s inception in 2009. That doesn’t mean you can’t make money as a bitcoin miner. Since mining uses a lot of energy, consider a cold climate to reduce your equipment cooling costs.
10. Invest in a franchise
If you’re concerned about making all the right moves to start a bitcoin business or write a bitcoin business plan, consider a franchise. Look for a franchise with strong name recognition. For instance, if fast food interests you, Burger King and McDonald’s already offer users the opportunity to buy gift cards with bitcoin. A Subway or Chik-Fil-A franchise is less capital-intensive. Alternatively, select a bitcoin-focused franchise, such as Coingaia (a btc exchange) or MegaBig Power for bitcoin miners.
As you can see, the ways to build a bitcoin business or new age enterprise are almost limitless. Ask yourself, “How would I like to spend bitcoin?” or “In what ways could wallet developers improve function and security?” Create a business that aspires to achieve your dream. With these questions in mind, how would YOU like to spend bitcoin? Are you a bitcoin investor? Please share your insight to keep the entrepreneurial energy flowing.