In today’s world, saying or writing words like “Cryptocurrency” or “Blockchain” makes sure we get all kinds of explanations. Usually, it is described as a currency that is not real; mining without any waste; something that only tech-savvy people use. However, cryptocurrencies traveled a long way from being used only by a small number of people to a resource used by millions around the world today. With a market cap of over 529.33 billion dollars and expected growth with a compound annual growth rate of 56.4% until 2025, Bitcoin and other cryptocurrencies (also known as “altcoins”) are becoming more and more present in everyday life.
So, what is crypto? It is a virtual currency that’s not operated by a centralized authority. Based on a public transaction ledger built upon a peer-to-peer network, every transaction is encrypted so that payer and receiver cannot be identified. For it to happen, a peer-to-peer network needs to validate the transaction, and when the majority does it, it becomes part of the history and cannot be changed. It ensures that no third parties are necessary for the transaction to happen, and it lowers the fees and transaction time to a bare minimum. All coins are stored on a digital wallet that allows both transfer and conversion into a local currency.
With the expansion of bitcoin and altcoins, various business types learned that it could add a number of benefits. Here are some of the ways how crypto can improve everyday operations.
Low transaction fees
Using crypto means that you will have no bank or credit card fees for the transaction. Also, bitcoin transactions are not subject to taxes since it is not a currency issued by any government. Transactions are faster than the normal ones, often instantaneous with negligible fees. Also, both buyer’s and seller’s anonymity are guaranteed because there are no third parties that track transactions. The architecture of blockchain-based on a peer-to-peer network has no restrictions on commerce. Conversion of coins into regular money is easy with online exchanges.
Getting new customers
It is estimated there are more than 40 million cryptocurrency users around the world. Many of them are early adopters of new technologies, but there are also people from all aspects of life. What all of them share is interest in using blockchain in various ways. By implementing the possibility of paying with crypto, a business can positively influence its userbase’s growth. Adding a company to merchant directories that list a business that accepts cryptocurrency is an excellent way to promote a new feature. Since crypto is not subject to exchange rates, transaction charges, and similar levies imposed on by states or governments, it makes worldwide trade much more comfortable.
Becoming part of the community
Offering the possibility to pay for your product or service by using crypto is just the tip of the iceberg (check a list of best apps to buy bitcoin and cryptocurrency in the USA). By adopting this technology, a business becomes part of the growing worldwide community that supports and encourages all crypto-based activities. The fact that currently, more than 1200 unique altcoins are being used worldwide offers a variety to choose which one is best for business. For example, supply chain tokens can be used in supply chain operations in various industries.
Take a chance at mining
Any business that implements cryptocurrency in its daily operations should think about going one step further, which means starting a crypto mining operation. Today it is easy to get both big and small, but high-quality rigs for bitcoin mining. The potential benefits of this type of action are clear. First, you can gain additional funds by selling mined tokens. These funds can then be used to support your own business or projects instead of taking credit or loan from the bank. Coins can also be used to pay for services or products to other companies that accept cryptocurrencies, and your business needs to operate.
Integrating business and crypto
Crypto can help businesses in various ways, not just to pay for your services or products. It can be integrated into a customer loyalty program, where instead of points, the company can reward clients with tokens. Since they can trade tokens for money, they get additional benefits. Employees’ bonuses can also be paid in bitcoin. This may be especially interesting to younger workers who are usually open to new technologies. A lot of startups that are focused on blockchain pay whole salaries in cryptocurrencies. As Bitcoin can be considered relatively stable (at least from a cryptocurrency perspective), it can add value to the company’s portfolio.
Owning the assets
Even though your bank money is safely on your account, you can lose access to it in several ways. By using standard banking services or credit cards, you allow the possibility for a third party to take control of your assets. Banks can also block your account for various reasons, such as infringement of Trials of Services. And then you need to do a lot to regain control over your resources. Unless you allow someone else to use your wallet, you are the sole owner of both public and private encryption keys. That will enable you to exert complete control over your crypto assets without fear that someone will take them away.
Even though Bitcoin is considered a currency, it is an entirely digital one. They cannot be counterfeited. Blockchain transactions are encrypted, and that functions as a shield against account tampering and fraud and guarantees privacy. Scamming is also impossible to happen, as the moment the compensation is sent or you approve the transaction, reversal is impossible.
With all the benefits stated, it would be fair to mention some disadvantages in using crypto. First, it is a highly volatile market – the rise and fall of a coin’s value can often seem unpredictable to beginners. Second, crypto technology is still considered new on the market. The problems may appear in the future that is not known today. With all that in mind, caution is advised to anyone who plans to invest. Still, the benefits are more than enough to encourage companies to make crypto part of their operations.