The new fish in town is “cryptocurrency” and it is evident that any talk about virtual money elicits varying opinions — some swear by the independence and reliability offered by its peer-to-peer architecture, some consider it risky. But can your business afford to ignore it?
For payment, your business is probably well-versed with the usual methods — credit and debit cards, cash and bank transfers, as well as more recent options like Apple Pay or PayPal. These are tried and tested, and offer a high level of convenience to you and your customers at low risk to both parties. But if you think about it, it took a while for users to warm up to each method and overcome their fears and apprehensions around new ways to make payments.
The new fish in town is ‘cryptocurrency’ and it is evident that any talk about virtual money elicits varying opinions — some swear by the independence and reliability offered by its peer-to-peer architecture, some consider it risky.
But when it comes to businesses, some of the behemoths are now embracing this new digital currency — including PayPal and Facebook, the most recent ones to jump on the crypto bandwagon.
In this blog, we will delve deeper into the mighty new world of cryptocurrency and explore if it could be a good fit for your business as well.
What is cryptocurrency?
Cryptocurrencies are a form of digital money, which is stored and used online. Today, there are over 3000 numbers of cryptocurrencies, like Bitcoin, Ether and Ripple. Transactions with cryptocurrencies are not controlled or regulated by any centralised authority or federal banks unlike traditional forms of money or currency.
Businesses and Cryptocurrency:
In the last few years, cryptocurrencies like Bitcoin and Ether have gained massive popularity among individual traders and businesses alike. Many businesses have been adopting cryptocurrency as a possible payment method and this is because crypto offers numerous benefits in terms of speed, cost of transaction, security and autonomy.
Moreover, if you are running a business, you would want to be on your front foot and keep abreast of new technologies, especially the ones that can improve how your business operates and offer your users an even larger range of payment methods.
Here are some of the advantages of using cryptocurrency:
1. Worldwide Access
If the sky’s the limit for your business, cryptocurrency can indeed be a formidable ally. There are no boundaries to virtual assets, as opposed to traditional forms of currency which are bound by region, central banks or governments. People from over 100 countries have used cryptocurrency and it is testimony to how it can eliminate the hurdles of cash flow on an international scale.
Digital assets also eliminate high costs associated with exchange rates and cut down the waiting time for international transactions. Cryptocurrency can thus create a bigger audience and a vast talent pool for your business, at affordable rates.
2. Save on Transaction Costs
Card processing fees make banking costs high for businesses and this is common across the board — traditional banks charge a processing fee for card transactions, which are by far the most common form of payment. Small businesses especially struggle with transaction costs.
Enter cryptocurrency — with no central authority or middlemen to facilitate transactions, this digitised entity cuts down your transaction fees considerably.
3. Fraud and Chargeback Protection
When it comes to sending and receiving money — the lifeline of all businesses — safety and security of transactions are of utmost importance. This is something that is easily achieved with cryptocurrency — the technology of cryptography rests on the principle that transfers are final, irreversible and can not be cancelled after a transaction is made.
These transactions are solidified as blocks which are verified by the entire network, making it nearly impossible for independent parties to tamper with transactional information, least of all validate them.
This means that with cryptocurrency, your business can achieve even greater security than traditional banks have been able to provide.
In sum:
All in all, cryptocurrency offers a vital means for expanding and strengthening your company. With unique benefits of speed, transaction ease, its global reach, and lower costs of the transaction — your business shouldn’t be missing out on the crypto revolution.
Disclaimer: While this article is written by keeping the global prospect in mind, the possibilities due to rules and regulation as per the law of land could vary. It is advised to consult your auditors and lawyers and act accordingly.