Why It Matters to Small Businesses
The meteoric rise in cryptocurrency prices has been a boon to mainstream media attention and tens of thousands of new investors. But it also had a relative impact on small businesses. Over 1,500 companies have declared their intentions to accept bitcoin payments, including popular retailers such as Overstock.com and Expedia, during the last six months.
More than 40% of small businesses—those with annual revenue under $1 million—have already accepted cryptocurrency payments. They include restaurants and cafes that provide meals for the homeless, taxi services in cities like Las Vegas and medical clinics in rural towns. For better or worse, cryptocurrency is here to stay, and small business owners need to understand its potential impact on their bottom lines if they don’t want to miss out on a cash influx that could make or break their financial health for years to come.
Many Businesses Already Started Accepting Cryptocurrencies While Some Exploring the Options
Bitcoin and other cryptocurrencies are becoming more accepted in mainstream society, with growing numbers of retailers beginning to accept them as a form of payment.
There are currently several popular types of digital currency in the cryptocurrency markets, including Bitcoin, Litecoin, Ether, and Ripple. Unlike typical currencies (such as the US dollar or Canadian dollar), cryptocurrencies aren’t controlled by any central authority. Instead, they exist digitally through a series of transactions recorded in a public ledger called a blockchain. The decentralized nature of cryptocurrency means that it can be exchanged freely between parties on the internet without relying on third-party intermediaries like banks or credit card companies to process each transaction.
As the number of retailers accepting cryptocurrency has increased over the years, so too have the number of businesses accepting it, including some big names like Tesla and Whole Foods Market.
A growing number of businesses are adopting cryptocurrency out of necessity: by foregoing credit card transaction fees, they can offer lower prices to their customers while also keeping costs low through reduced labor expenses.
For example, if you owned an e-commerce store that sold clothing online at $50 per item, you could potentially increase your profit margin by accepting cryptocurrency payments instead.
In this case, you could get paid $50 worth of Bitcoin for each shirt sold rather than just $35 for each sale processed through a credit card payment processor like PayPal or Stripe. This would allow you to keep more money from each sale while also avoiding paying fees to those third-party processors.
Accepting cryptocurrency payments may also present an opportunity to capture new customers with access to digital wallets (either directly through their computer or indirectly through services like Google Pay). This is because most people who use cryptocurrency tend to be early adopters with high disposable incomes, many times making them ideal customers for your business’s products or services.*
Blockchain is a Secured Way to Store Your Company’s Financial Records
Blockchain could be an incredibly secure way to store your company’s financial records. By using a distributed ledger that is not owned by any single entity, blockchain technology makes it possible to create tamper-proof systems for trading securities, tracking medical data, and maintaining transaction histories of digital currency transactions.
The main difference between blockchain technology and traditional databases is the level of security. In conventional databases, anyone with access can modify the data stored inside them; this frequently means that you have to safeguard the information by controlling access rights via passwords or keys.
In contrast, blockchains are protected by public-key cryptography and always contain a full copy of their history/data. This makes it almost impossible for hackers to manipulate any stored data. So, if something gets recorded on the blockchain, there is no way to change it without alerting everyone else on the network.
As a result of this radical transparency, blockchains are also referred to as being “trustless,” meaning that they eliminate the need for third-party verification in many types of transactions (such as verifying insurance claims).
Blockchain also comes with its built-in incentive system: whoever adds details about a particular transaction gets rewarded in cryptocurrency. The same goes for verifying or storing information about other activities (such as entering new blocks into existing chains).
The compensation (i.e., payment) typically goes to whichever the computer first adds a new block in line with specific rules set out by Satoshi Nakamoto (the anonymous inventor of Bitcoin). However, businesses may choose to pay those who confirm business information instead.
Gain the Competitive Advantage by Accepting Cryptocurrency from Your Customers
Cryptocurrency has been around for a few years now, but it’s still relatively uncommon. Bitcoin, the most well-known cryptocurrency, is attracting a lot of attention. The Bitcoin cryptocurrency value also continues to rise, and so does the number of people who are curious about it and want to learn more.
If you decide to accept cryptocurrency from your customers, you may be able to increase your customer base by putting out some extra effort in helping them get up to speed with the technology. And attract even more customers by giving them access to something they’re interested in.
Cryptocurrency Investments can be Risky, but Good Research can Generate Lucrative Results
If you’ve been living under a rock for the past few years, you may be unaware of the cryptocurrency revolution. This exciting new mode of exchange is revolutionizing the way people do business, and it’s also a great investment opportunity. Cryptocurrency is a digital currency that one can use to buy and sell things online or even pay for goods in person (like at a coffee shop).
It exists entirely online and uses advanced encryption methods to protect against hacking or theft. There are several different types of cryptocurrency (called altcoins), but the two most popular are Bitcoin and Ethereum. As with any major investment—especially one that’s still so new—cryptocurrency is high risk with big potential rewards, but it also comes with plenty of challenges that are worth understanding before you get started.
One thing to know about cryptocurrency is that it exists entirely outside conventional banks and government regulation. You can manage all transactions via peer-to-peer technology on many exchanges found online. The available options have exploded in the last few years and give an option for everyone.
However, do your homework, especially when choosing where to store your funds. Some cryptocurrencies can only be bought on certain exchanges, while you can buy others directly from individuals known as miners who work hard to find them using special software and hardware.
Another important consideration when investing in cryptocurrency is security. If you don’t set up your accounts correctly from the start, hackers could access your funds (in fact, they have already done this on countless occasions). It’s important to know what safety measures exist before investing large sums in anything digital; consider starting small until you learn how everything operates firsthand.
Educate Yourself Now and Be Prepared When the Shift Happens
It is really difficult to understand how quickly this emerging technology is changing the way businesses transact with one another. There are a lot of naysayers who don’t think Bitcoin could ever have any lasting value. They see the price swings as a sign that crypto is too volatile to be trusted. Businesses should do well to pay attention and start preparing for when cryptocurrency becomes more mainstream.
In fact, in some circles, some people believe that cryptocurrency will soon become an essential part of every business’ infrastructure. But before we dive into all that, let’s take a moment to understand what cryptocurrencies are and how they function.
Cryptocurrencies Will Continue to Gain Popularity. Small Businesses Should be Ready for this Change.
One of the most intriguing new technological innovations of recent years is cryptocurrencies. Cryptocurrency is an electronic or digital money system that uses cryptography for security, and it allows people to move their money from one place to another without a bank account. As cryptocurrencies are not controlled by any centralized system, they are considered reliable over cash and credit cards.
Since the use of cryptocurrency has exploded over the last few years, many small businesses are now wondering what this growing technology means for them. Can they benefit from using cryptocurrency? What are the drawbacks? How can they use it in their business to increase efficiency and save costs?
