In order for Bitcoin to be accepted in any business regardless of the size, managers will need to research whether or not it would be a profitable venture.
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For small businesses, the risk of trying something new is relatively small. Small businesses can test a new product or service to evaluate the demand with little to no cost and the potential to increase business revenue and profits.
For a larger business, trying out new products or services in a test market is more expensive due to increased costs and difficulty in logistics. When a large business with multiple locations wants to try something new, often the best way to do so is to introduce the product or service in either one or a few locations to test the product or service while minimizing risk. Bitcoin in business is complex, but the idea as a whole can be broken down into smaller segments which can point to what needs to change in order for adoption to increase.
As I discussed in the previous article in the series about risk management, businesses want to minimize risk and maximize profits, and to do that they have to distribute some degree of power throughout the organization to optimize the business processes and evaluate choices and ultimately make important choices which shape an organization’s health. If a business wants to integrate Bitcoin, they either need a way to do it with minimal risk, or a way to do it on a basis which would not require them to invest in assets or subscription services to accept the currency. Most businesses turn to third-party services to avoid the hassle of fully learning and maintaining the technology and keeping it up to date with the best security practices as well as the ability to minimize risk by instantly converting to fiat.
Most companies that try to integrate Bitcoin in business don’t setup a normal wallet due to the time commitment to learn the technology fully or the risk of market volatility on holding their Bitcoin over time. In general, managers will only make decisions which they believe will either minimize loss or maximize profits. If they are going to approve the decision to launch a new product or service, they have to have reason to believe that the decision to test something new will result in something positive for the health of the organization.
In publicly held companies, managers have a duty to the stockholders to perform to the best of their ability to operate the business successfully. This is one of the main reasons why smaller companies are much more likely to integrate Bitcoin in business rather than large companies unless the manager of a large business believes in the technology as a whole. Managerial decision-making will remain a hurdle for Bitcoin adoption within businesses unless more payment processors integrate Bitcoin solutions into their core platforms or a precedent of Bitcoin acceptance is established over time.
What do you think about the importance of manager decisions in Bitcoin’s adoption? Let us know in the comments below!
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Drew is an undergraduate student at the University of Texas at Dallas, majoring in Business. He is an active member of the Cryptocurrency community, and enjoys collecting, trading, and writing about various coins. Outside of the digital currency world, Drew tends to spend his time with friends, playing video games, or studying. Feel free to email him with news tips or questions at [email protected]
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