Crypto is a hot subject to debate over, particularly in the corporate world.
An increasing number of companies are using digital assets for a host of operational, transactional, and business reasons. As with every new phenomenon, a massive range of entrepreneurs is hesitant towards this economic development.
Regardless of your investment stance, there is a strong possibility that cryptocurrency will impact you and the future of your business. According to Block Social, the first ten crypto currencies with the highest market cap make up around 88% of the total cryptocurrency market value.
Why consider using cryptocurrencies?
According to Forbes, there were more than 1000 US corporate blockchain projects in the pipeline as of late 2020. The number shows how more companies look to enhance their functioning and construct their empires in the new domain.
The use of crypto to conduct business comes with many challenges and opportunities. This is why companies who are willing to invest in cryptocurrencies should ensure the following:
- A vivid understanding of why they undertake a particular action
- A list of benefits rolling with the cryptocurrency investment
Elon Musk, the Techno King of Tesla, has recently made it to the headlines for his latest move in the digital domain. He played a massive hand in pumping Bitcoin after updating his Twitter bio to include Bitcoin and later buying $1.5 billion worth of Bitcoin for Tesla. Musk has put a face to the institutional acceptance of cryptocurrency. Recently, Tesla also announced that prospects could buy cars using Bitcoin.
How is cryptocurrency taking over businesses?
From financial management businesses to non-profit fundraising entities, companies are examining the best ways to integrate crypto in their operational strategies. Individual investors are also willing to jump into this pool.
If you are one such entrepreneur, it is essential to take a closer look. We suggest that you take an overview of the cryptocurrency climate.
Below, we have listed some of the ways through which cryptocurrency is taking over businesses:
- It is reducing the transaction fee
If your company is willing to adopt crypto as a transaction fee, one bottom-line benefit is that there will be no direct processing fee. Unlike conventional credit card transactions, where banks are the intermediaries and charge an amount, cryptocurrency is decentralized. This means that the transaction has no third party involved.
Perhaps, this is one reason that Deloitte’s 2020 blockchain survey discovered executive attitudes towards blockchain technology undergoing a transition. A rising number of business leaders are beginning to view Bitcoin and other cryptocurrencies as an effective alternative for traditional fiat currencies.
There is no need for employment wages, rents, or paying utility bills. These savings eventually morph into low transaction costs. This fact is encouraging more people to trust these latest financial tools and start dealing in this mode. Plus, depending on the broker you choose, you can even trade with no maximum deposit requirements.
- It enables a faster payment
Currently, there is an entire industry built around cryptocurrencies. It is held by institutions dedicated to supervising all digital coin exchanges that take place across the globe. The rate at which cryptocurrency is growing is ground-breaking. This fact can be confirmed by the early adopters who turned rich overnight. They found exponential opportunities to succeed financially.
Another reason for its massive adoption is the rate at which transaction occurs. Unlike credit card payment that takes days to process, the crypto transaction happens within a jiffy. You get access to coin payment within minutes. The sales are also final. This means that charges cannot reverse after the transaction completes.
All of these features translate into more financial security for your venture.
- It gives more power to entrepreneurs
Honestly, there was never a better time to do business than today. Considering how blockchain and cryptocurrencies are helping entrepreneurs, we are not far from the day when even street businesses would be dealing in digital currencies.
BitPesa is one company that is enabling business owners in Africa to accomplish financial commitments with American, European, and Asian companies. It aims to help small and medium businesses achieve better financial coverage and the liberation of financial connection with the entire world.
The world is changing at a rapid pace. Given the current economic climate, it won’t be wrong to state that traditional financial institutions won’t hold the fort for a long time. The world is facing an increasing need to tear down the borders. Many companies are playing a role to make it happen. One such business is Autocoincars. You can buy your favourite wheels from miles apart using this portal.
Alongside using BitPesa and TenX’s digital wallet, entrepreneurs can convert altcoins into fiat currency. They can later invest it in their companies for expansion and payments.
- It enhances customer access
Offering coin payment options will increase the buying audience. Digital currency is non-governmental, that is, there are no boundaries. Your business can grow its global clientele as the use of crypto grows.
As mentioned above, cryptocurrency has no exchange fee or border charges, making it a perfect medium to conduct global business.
A few B2B organizations, including professional service companies and more B2C companies, are accepting cryptocurrency payment. This trend is likely to accelerate as more people go for digital assets. Customers can track the transaction, making sure that no inadequacies occur. Each transaction is recorded on blocks. All parties involved in the transaction can maintain their anonymity.
Ultimately, by simply accepting cryptocurrency payments, you can improve your bottom line to attract new customers.
Although cryptocurrency is taking over the business world and the benefits are mind-boggling, you don’t have to let your guard down. There is a complex and evolving regulatory environment that you must follow. There are financial implications of accepting or investing in cryptocurrencies. We advise you to educate yourself thoroughly and start talking to your financial advisors.
Don’t let the sparkle daze you. Only opt for this mode of business when you fully understand its scope.
We hope this blog made sense and gave you an insight into the digital economic arena. In case there is something you aren’t clear about, ask away!