When the Bitcoin made its first appearance in 2009 it paved the way for a whole ecosystem of cryptocurrencies. Over the years it has continued to be a point of interest for people who have placed their trust in it as a possible alternative to the traditional financial system. Such people continue to monitor its development closely.
Whether investing in cryptocurrencies is a profitable business proposition or not has been much debated upon. There is no denying the fact that the crypto space is marked by high volatility. When people started the ICOs or Initial Coin Offerings similar to stocks, there were hardly any rules or supervision. At this time in 2017, the Bitcoin was steadily escalating in value but soon it started to nose dive and the decline continued throughout the following year. Eventually the price steadied and people had now witnessed the dramatic rise and fall of the Bitcoin. This made others skeptical about investing in crypto coins. In the last year or two, the crypto space has again caught the attention of investors and entrepreneurs as there have been more regulations in place and also because of the arrival of automated trading applications like .bitcoin superstar software.
With cryptocurrencies steadily growing and more and more crypto assets making their presence felt, both small and large online businesses are now evaluating whether they should also jump onto the crypto bandwagon. Some organizations like the non-profit groups and financial management businesses are trying to find easy ways to introduce cryptocurrencies in their day-to-day operations. When you examine whether cryptocurrencies can work to your business’s benefit or not, you will see that there are some positive advantages:
- Unlike regular monetary transactions, crypto payments take place much faster. Credit card payments for instance will often take days to get cleared. Moreover, transactions and sales are always final. Charges can never be negated once sales are made. This automatically implies greater financial security for your business operations.
- Transaction fees are also reduced when you business starts to work with cryptocurrencies. For instance, when your business begins accepting one or more crypto coins in return for your products and services, there will not be any processing fees. This is present in credit card transactions where the banks act like intermediaries and charge fees. Crypto assets are decentralized and there is no third-party involvement.
- As more and more companies become keen to accept cryptocurrencies, buyers can also benefit from multiple payment options and this adds to customer satisfaction. Digital currencies, being decentralized, can facilitate money transfer across borders seamlessly. This implies that your company will probably witness a growth in its client base globally. Since cryptocurrencies do not entail border fees or exchange rates, they can prove to be the best ways to conduct global businesses, at least in theory. Today, only a handful of B2B businesses and probably a bigger number of B2C businesses are paying with crypto coins and accepting these. But the trend may change when the marketplace changes. A day will probably come when by simply using cryptocurrencies you can get yourself new customers.
- Finally, while crypto assets are notoriously volatile, they are also attractive to all investors for the same reason. They appeal to people willing to take big risks in the hope of high returns. There can easily be a situation where a customer pays you in crypto coins but the value crashes soon after the transaction has happened. This problem has been somewhat resolved by merchant wallet accounts that guarantees instant conversion into fiat currency.