Is Bitcoin Right for Your Business?

“Magic internet money for nerds” is a thing of the past. Today, over 2.5 million people in the Netherlands own cryptocurrency, and this number continues to grow. Beyond individual consumers, more businesses are starting to explore cryptocurrency, particularly Bitcoin. But what exactly can your business in the Netherlands do with it? Let’s dive in.

From Pizza to a Global Phenomenon

In Bitcoin’s early days, when only a handful of tech enthusiasts believed in the future of digital currency, Laszlo Hanyecz famously paid 10,000 Bitcoins for two pizzas at Papa John’s. At the time, Bitcoin had little to no value. This transaction, now worth over half a billion euros, is celebrated annually as Bitcoin Pizza Day, marking the first real-world Bitcoin purchase.

Following that 2010 milestone, Bitcoin adoption began to grow slowly. Initially, it was used mainly by tech enthusiasts and those intrigued by the idea of a decentralized digital currency. By 2011, Bitcoin gained notoriety as the currency of choice on the dark web, particularly on Silk Road, an anonymous marketplace for illegal goods.

Despite this shadowy past, Bitcoin’s narrative shifted in 2013 when governments began taking notice, regulating its use and allowing businesses to accept it under specific guidelines. Companies like WordPress led the way, and by 2016, Ethereum had further transformed the landscape with Initial Coin Offerings (ICOs), enabling businesses to raise capital by creating and selling their own cryptocurrency.

The Breakthrough: Bitcoin in 2021

Bitcoin’s mainstream breakthrough occurred during the economic uncertainty of the pandemic in 2021. Businesses and consumers turned to cryptocurrencies as a hedge against inflation. Major companies like Tesla not only purchased Bitcoin but also accepted it as payment, while financial giants like PayPal and Visa integrated crypto into their systems.

El Salvador declared Bitcoin legal tender, followed by the Central African Republic. These moves signaled a seismic shift toward integrating Bitcoin into global financial systems.

What About Businesses in the Netherlands?

While Bitcoin is now a legitimate option for businesses, its practicality depends on your operations. If your company deals solely with Dutch suppliers and customers, traditional payment systems like iDEAL and Tikkie offer unparalleled convenience and low fees. However, for cross-border transactions, Bitcoin offers distinct advantages:

Lower fees: International payments via traditional banks can incur hefty charges—sometimes up to 15%—and take days to process. Bitcoin transactions are faster and cheaper.
Global reach: Bitcoin allows businesses to seamlessly interact with international clients and suppliers.

Practical Applications

Webshops

E-commerce businesses can easily integrate Bitcoin payments using plugins like Coinbase Commerce, BitPay, or NOWPayments. These solutions work with platforms like Shopify, WooCommerce, and Magento and can automatically convert crypto into euros if needed.

Physical Stores

For brick-and-mortar businesses, accepting Bitcoin is as simple as using a QR code system with platforms like CoinGate or BTCPay Server. Customers scan the code with their crypto wallet app, and transactions are completed within seconds.

For a more integrated solution, Point of Sale (POS) systems like Pundi X enable businesses to accept crypto payments via NFC or QR codes alongside existing payment systems.

Invoice Payments

For businesses wanting to offer crypto as an option for settling invoices, tools like Cryptio or Gilded streamline the process, allowing payments to be tracked and integrated into accounting systems.

Costs, Service, and Image

Beyond cost savings, accepting Bitcoin can enhance customer service and bolster your brand’s innovative image. With a growing number of crypto users in the Netherlands, offering it as a payment option alongside traditional methods makes sense. Companies like Thuisbezorgd, Zamnesia, and Rentvilla already accept Bitcoin, targeting younger, tech-savvy customers.

Bitcoin in Practice

Arnhem, not Amsterdam, leads the Netherlands in Bitcoin adoption. A local initiative turned Arnhem into one of the most Bitcoin-friendly cities globally, with over 100 businesses accepting the currency. Events like “Adopting Bitcoin” showcase the city as a pioneer in fostering cryptocurrency adoption.

On a global scale, initiatives like JP Morgan’s JPM Coin highlight how blockchain-based financial systems can save billions in transaction costs, benefiting not just multinationals but also SMEs engaging in international trade.