The use of cryptocurrency has grown immensely in the recent past. Although it is not a mainstream payment yet, businesses have accepted it due to the benefits that come along with it. Companies such as Tesla, Microsoft, Lionsgate Films, Expedia, WordPress, Virgin Galactic and others like PayPal have already embraced the use of cryptocurrency. According to the companies that have adopted its use, they’ve reported that cryptocurrency can eliminate various drawbacks experienced with traditional payment methods.
Why businesses should adopt the use of cryptocurrency:
• To reduce transaction costs
Unlike credit card payments that can cost up to 4% fee payment, cryptocurrencies come with low transaction costs. In fact, it is a low flat fee that is not even a percentage of the full transaction.
• Instant availability
Cryptocurrencies are not like bank-owned payments. There is no third-party that controls them and once a transaction is successful, you can access your currency in the wallet quickly. You can even convert into local currency whenever you want.
• To eliminate fraud
Crypto payments are very safe particularly Bitcoin exchange transactions. They are hard to imitate by potential scammers. Bitcoins are purely digital right from the creation to final payment. Additionally, they cannot be counterfeited whatsoever.
• No more trade barriers
International trade has become very accessible. This is because cryptocurrency has eliminated barriers and other restrictions. Different currency payments are accepted.
• A way of attracting new customers
Being a fairly new payment method, new customers want to try. A business that adopts it can bring in new customers.
• Provides a competitive edge
Most businesses have not adopted crypto as a form of payment. A business that adopts it gains a competitive edge.
Individuals find it easy to delve into cryptocurrency. With just a wallet, personal financial goals and other technical details, one can get started. However, things are a bit different for businesses seeking to use cryptocurrencies.
Below are ways businesses can adopt cryptocurrencies.
1. Acquire a blockchain company
A business that is seriously looking forward to using crypto can develop or acquire a company that uses crypto that complements and matches their existing operations and infrastructure.
2. Start up a merchant wallet account
Setting up a wallet takes minutes. Wallets offer customizable portals where you can convert your cryptocurrency to that of your local currency. Certain merchant wallets like Bitcoin accept different types of cryptocurrencies. However, you need to confirm whether the merchant you choose accepts your currency before disclosing to your customers.
3. Develop a crypto service or product
A business can invest in a cryptocurrency service or product. It can include turning a blockchain idea into a commercial application. Deloitte, for instance, is one company that has ventured into this field.
4. Launch a new token or raise capital through ICO
ICOs can enable a company to encourage investment and develop new markets. Through an ICO, a business can also create its own currency, which can be used to pay for their products and services.
5. Enter a joint project or consortium
Blockchain technology is more prevalent in the finance industry. Two different businesses can start a project to develop an infrastructure using blockchain technology. Businesses in different sectors can work collaboratively to form an application using the blockchain technology.
Cryptocurrencies might unlock various future developments in the financial world. It seeks to break the traditional financial structure. The best way to begin using blockchain and cryptocurrency depends on the type of business, resources, and funds available.
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Guest Author Bio
Allen is a keen writer covering a range of topics such as Internet marketing, SEO, finance, fashion, movies, business, marketing and more! When not writing, he’s found behind a drum kit.