By Thomas Jackson
Since the introduction of bitcoin in 2009, thousands of other cryptocurrencies have been created since then, and have become a major force in the finance world. Cryptocurrencies showed their strength at the height of the pandemic in 2020 when the financial sector hit like every other sector of the economy. Not only did they stand firm during this period, but there was also significant growth.
Since over a decade that it came to light, many investors and traders have gone from relying on fiat currency to cryptocurrencies. And they’ve proven to be a stable alternative investment to a large extent. However, it’s not just individuals who are making the shift to cryptocurrencies. Businesses have joined in the adoption of these digital currencies.
The need to be more digital in their operations is more evident to businesses, considering the COVID-19 pandemic and its aftermath. And one of the best ways for companies to achieve this goal and be ahead of the pack is to adopt cryptocurrency and blockchain technology.
With the evolution of cryptocurrencies over the years, it is easy to see why businesses are starting to adopt them en masse. However, even with all of its benefits, some entrepreneurs don’t see the need for it or are yet to grasp how it benefits their business. In this article, we will discuss some of the ways that cryptocurrency benefits a business.
Creating a more accessible network for money to flow
With cryptocurrencies, all of the business’s financial transactions can go through the internet. While other payment methods, such as credit cards, already offer this, they don’t provide some better qualities that cryptocurrencies offer.
For instance, there may be issues processing the credit card, and you also have to wait for the financial institution to sanction the transaction. So it is different with cryptocurrencies which give the business total control of the funds and transactions without a centralized organization.
So, customers can pay for your product or service more conveniently without going through credit clearances.
Reduces transaction cost and increases business reach
Using cryptocurrency as a payment method ensures that the business deals with the customers directly, and the absence of a middleman means that the transaction cost will be much lower. According to research paper writing services UK, this makes it an ideal adoption for small businesses that are very sensitive to minor differences in cost. Furthermore, it means that they can adjust the prices of their products and services and compete better in the market.
The seamless and convenient nature of cryptocurrency transactions is a big positive for your business. Although there are still hoards of people that don’t own any cryptocurrencies or understand it much, adopting it for your business means you’re opening yourself up to a new market. This gives your business a wider reach, boosting your sales and improving your reputation in the market.
Maintaining anonymity and protecting customer privacy
One of the key qualities of cryptocurrencies is that they ensure the privacy of users. This quality is another positive advantage for businesses that adopt it as a payment method.
It’s easy for anyone to track other people’s information on the internet with the use of other online payment methods because they give out their details and identity. However, customers don’t have to reveal their identities or require any of their details with cryptocurrencies. So, it’s impossible to track the purchase that a customer makes.
So, in a world of digitization where cybersecurity is one of the biggest problems, cryptocurrencies maintain customer confidentiality and enhance customer security. There are several reports of massive data breaches that target individuals and business organizations and leave them exposed to financial losses and identity theft every year. With cryptocurrencies, the buyers are in control of the amount and type of information they give out. Therefore, adopting cryptocurrency for your business makes you more attractive for individuals that value their privacy.
Make cross-border transactions easier.
Digitization allows businesses to sell to customers from different parts of the world. However, according to an essay writing service, it’s not that straightforward because of the different barriers businesses and customers encounter. One of such barriers is the high cost involved in processing international customer payments.
However, with cryptocurrencies, all transactions – local and international – are the same and are easy to execute. Crypto payment bypasses the restrictions and barriers of global trading and also makes it easier to accept payments with any currency. It doesn’t matter whether the transaction is within or outside the country. It is completed with the same speed.
Many of the complexities involved in dealing with traditional currencies and processing payments from customers globally are dealt with. This allows the business to complete international trade without overpricing the product or parting with a large part of their profit since cryptocurrencies have the same value everywhere. Also, the absence of intermediaries means transactions are less costly and quicker.
Not only does it help the business maximize its revenue, but it also aids the business’ expansion into international territories.
Prevents chargeback fraud
One of the many problems that online and physical businesses face with credit cards for payment is chargeback fraud. In chargeback fraud, fraudsters often cancel or reverse the payment for a product after they have gotten and used the product. This is very detrimental to the business, and can lead to significant losses for the business in the long run.
However, this type of fraud can only work for transactions involving fiat currencies and credit cards. Cryptocurrencies make the business immune to this type of fraud because it is immutable, and it’s impossible to reverse all payments already recorded on the blockchain. So once a customer pays, it’s permanent, and they have to reach out to the business in case a refund is necessary. So again, this is another way that cryptocurrency can help businesses maximize their profit and is a significant benefit.
There’s still a long way to go for cryptocurrencies to penetrate the market and gain mainstream adoption, but it’s making progress in the right direction. Adopting cryptocurrency now puts you two steps ahead of the pack and gives you a competitive advantage over your peers. The benefits discussed in this article are enough to convince you that you need cryptocurrency in your business.
About the Author
Thomas Jackson is a professional freelance content writer for Easy Essay and college-paper.org reviews and an active member of several writing clubs in New York. He has written several songs since he was a child. In addition, he gets inspiration from the live concerts he does in front of close friends and family members.