In an attempt to encourage as much business as possible from as many different places as possible, your firm might accept a broad range of currencies and payment methods. However, you might still have overlooked the worth of accepting crytocurrency, a catch-all term for various digital currencies.
You might already consider your business ahead of the curve in what forms of payment it accepts; for example, it might welcome emerging systems of mobile payment like Apple Pay and Google Pay. However, if you have long overlooked cryptocurrency, here are good reasons to start thinking seriously about it.
A rudimentary rundown of cryptocurrency
Your business might already readily take “normal” currencies, like US dollars and UK pounds, on a regular basis. Like those currencies, cryptocurrency can be exchanged for goods or services online. So far, so unremarkable… right? However, cryptocurrency also – befitting its name – utilises various cryptographic principles to secure transactions, CCN explains.
These principles even allow new coins to be created. The cryptocurrency with which you might be most familiar is bitcoin; indeed, when created in 2009, it was the first cryptocurrency. However, hundreds more cryptocurrencies have been introduced since bitcoin was made. The solely digital makeup of cryptocurrency has given it various advantages unavailable with traditional currencies.
A currency that encourages future stability
The value of the standard currency in your hand can fluctuate for various reasons that, in a practical sense, are well beyond your own influence or control. For example, due to centralised banking such as the Federal Reserve System, a government could affect that value through printing fiat money.
However, cryptocurrency, by contrast, is completely decentralised. In other words, no organisations like financial institutions or state bodies stand between the money and the person who owns it. This is possible due to the use of the technology called blockchain; this is the foundation of bitcoin and means that financial transactions can be conducted without a bank, as explained on Entrepreneur.
Whereas a hike in production of a conventional currency can inflate its value, a cryptocurrency will typically see a production drop as time progresses. As a result, the value of cryptocurrency can be less prone to inconvenient fluctuations and so this currency can be more future-proof. This hints that, with increased use of cryptocurrency, your firm can better safeguard its future.
More prompt and hassle-free payment
Despite the digital nature of cryptocurrency, it has many merits in common with traditional cash. For example, there is less need for you to worry about transaction fees that could eat into your takings and, thus, profit margins. With cryptocurrency, you can say goodbye to such fees of 2-3% when dealing with customers using traditional payment methods.
Usually, bitcoin transactions incur fees of only 1% to 0%. Yes, those really are accurate figures – and the reason for such cost-saving is that a bank is not required to verify a transaction and, thus, you would not be obliged to give a cut of the money to a financial institution. Nonetheless, you might have the option of speeding up the transaction by paying a fee that, reassuringly, is extremely small.
On the subject of speed, you can become thoroughly accustomed to it when handling cryptocurrency transactions. Again, due to the absence of any verifying middleman organisation, you don’t have to wait as long for the payment to reach you. Furthermore, once a bitcoin transaction has been made, a customer can’t contest it if they are disgruntled with your service.
A thoroughly secure form of currency
These days, a lot of emphasis is placed on the security that various methods of payment can provide. For example, you might have noticed how Apple promotes the security of its payment method Apple Pay, where you authenticate a transaction by letting a mobile device’s sensor read your fingerprint.
Security concerns are understandable when you are running a business and so often handling money that you would prefer never to lose to theft. However, as cryptocurrency is encrypted, it can be much more difficult to steal than a wallet containing cash, Nasdaq reassures. In fact, the strongest transaction mechanisms available are those using cryptocurrency.
The pseudo-anonymity of cryptocurrency has helped to ensure its security. Indeed, the anonymity of some coins has been further bolstered through additional features – and cryptocurrency also has the benefit of being less vulnerable to seizure at the hands of law enforcement.
If cryptocurrency does let you keep more of your money, you could pour saved money into other projects that could help to protect your corporate security in other ways. You could, for example, take out additional forms of business insurance beyond any that are legally mandatory in your home country anyway. An insurance broker like Be Wiser Business Insurance, which is based in the United Kingdom, can firms find policies that are especially worthwhile financially.
You can significantly broaden your potential market
You are probably already well aware that, by limiting your target market to that of the country where your company is currently based, you can unnecessarily limit your financial takings. The subject of casting your net wide is one we previously touched upon when we highlighted why your business might not want to shy away from accepting a broad variety of payment options.
However, you might still have underestimated just how far your reach could extend if you welcome cryptocurrency payments. Over time, more and more people have been obtaining mobile devices which they have then connected online to let themselves carry out financial transactions. We can expect this trend to continue – and cryptocurrency could, as a result, soon rise further in popularity.
As cryptocurrency is especially intended for use in low cost transactions, many people connecting to the Internet for the first time could come to strongly favour using it when they make payments. Cryptocurrency could, for example, soon especially take hold in the developing world, like mobile phone technology quickly grew in use through that part of the planet in the 1990s and 2000s.