Are Bitcoins the way forward for small businesses in Brighton?

Are Bitcoins the way forward for small businesses in Brighton? Nick Chowdrey from Crunch talks about how they could make (and save) you money...

Imagine a local economy where money can travel instantly between customers, vendors and suppliers, with no transaction fees, at the touch of a button.

Bitcoin is a digital currency that could make this a possibility. Although dramatic fluctuations in price have scared many people away, the technology has the potential to seriously improve the way we do business in Brighton.

A recent study by Barclaycard revealed that small businesses could be losing as much as £7.5 billion a year due to only accepting cash. This amounts to an average loss of £10,884 in revenue per business, per year.

Payments by debit or credit card have been available for a long time - so why aren’t more small businesses offering this option to customers? Darren Kis, who accepts Bitcoin as payment at his Brighton-based design and distribution company, SWAT Marketing, said:

“Using bitcoin reduces bank and credit card fees, because transactions are virtually free. Ultimately, it could really help small businesses with their cash flow, as payments are instant and it reduces banking costs.”

For Darren, whose business is all online, accepting bitcoin has also helped him expand his client base. He added:

“Bitcoin can also help small businesses do worldwide trade at no extra cost. The main reason I accept bitcoin is because it’s easier and cheaper for my overseas clients to pay me.”

Paying by bitcoin is also almost instant. This has led some to call it “virtual cash”. This begs the question, could bitcoin be a realistic solution for small businesses who can’t afford to offer card payments?

The problem is that small business owners are understandably put off bitcoin by the huge fluctuations in price, because firms that run on a small profit need their capital to keep its value so they can pay the bills. A greater obstacle, however, is that many people don’t know what bitcoin is, nor do they understand how to use it and buy it.

Bitcoin Brighton, a new business group, is trying to spread awareness about how bitcoin could benefit businesses in Brighton.

Founder, Graham Lally, thinks that adoption of bitcoin is happening in Brighton, but slowly:

“I'd probably expect to see bitcoin being used by more "fringe" organisations first - there are so many volunteer-based digital and arts projects which spring up in Brighton, and I can see them taking bitcoin as donations first.

“Maybe that will get bitcoin into the local area and kick off more local use.”

The group have monthly meetings to discuss the future of bitcoin in Brighton and plan to start hosting bitcoin seminars. They are also considering whether to install a bitcoin ATM in the city.

A more radical alternative to adopting bitcoin itself would be for Brighton to have its very own cryptocurrency. Lewes already has its own paper currency, the Lewes Pound. Lewes residents say that money spent locally circulates within the town’s economy, encouraging demand for local goods and services.

Whether or not a scheme like this could work in Brighton is something yet to be explored. However, with its thriving local economy and ever-growing tech industry, it certainly seems like an excellent candidate.

Interested in bitcoin? Visit www.bitcoinbrighton.com to find out more. Or follow @bitcoinBrighton on Twitter.

Nick Chowdrey is a freelance and staff writer who specialises in business and technology. He is currently Technical Writer at Hove-based online accounting firm, Crunch. Follow Nick @nickchef88

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