The marketplace dynamics require business owners to embrace technology in managing their businesses. As the world embraces automated business processes, there is a need to incorporate digital currency as an alternative to liquid cash. From their conceptualization in 2009, cryptocurrencies have claimed a share of the ever-growing market. Below are 7 reasons why businesses should accept cryptocurrency as a mode of transaction.
It is the only currency accepted worldwide, with neither geographical nor trade barriers. Comparing it with traditional currencies, each country has its money. Changing them to commercially viable currency, such as the dollar, is costly, which increases the operation cost. With cryptocurrency, customers can transact anywhere in the world without extra charges.
As more companies embrace cryptocurrencies, they will increase their network, accelerating their growth worldwide. Bitcoin is the most traded digital currencies currently. The rapid digital currency growth would benefit businesses that accept cryptocurrency as a medium of exchange.
Eliminates Transactional Paperwork
Digital currencies run on blockchain technology, which is an online platform serving as a transaction database. All transactions are online, which effectively eliminates paperwork. The process simplifies financial transactions, making trading processes faster, easier and more efficient. Payments move from one crypto-wallets to another instantly.
The exact process also applies when the business manager purchases stock or pays for services. With digital business operationalization, all business processes happen online, with no paperwork involved. It reduces operational costs and lets the business focus on its core function.
All crypto-transaction happens on the blockchain platform, with less handling of hard currency. The platform is secure and irreversible once finalized. There are no intermediaries who will demand a margin for their services. This approach eliminates fraudsters and alerts the crypto-wallet owners of a possible intrusion.
Also, there is no physical exchange of money on the business premises. All transactions happen online, with online security guaranteed. Blockchain security is reliable and secure compared to traditional banking technology.
Conversion to Other Currencies
People and businesses can sell and buy cryptocurrencies whenever they want to change them to cash. Its fluidity from cryptocurrency to hard currency and back makes it adaptive to other modes of exchange. For example, if you buy Bitcoin with Debit card, the conversion platform has its equivalent in US Dollars, which fluctuates based on market demands. Savvy buyers buy it when the value is low and sell it when it is high. It can also act as a store of value, which is one of the functions of money.
Fast and Convenient Transactions
Compared to banking transactions, especially when moving huge sums of money, the processing time is too long. The waiting period during funds processing by banks limits the fluidity of bank transactions. A simple transaction like buying gift cards can make the buyer wait for long periods waiting for bank approvals,
However, any cryptocurrency transaction is instant. Funds move from the buyers to the seller’s account in record time. It makes transactions fast and convenient for both parties. Sellers can serve more customers while buyers can go on to do other things. You can buy gift cards with cryptocurrencies easily, faster and conveniently.
Less Transactions Fees
Blockchain technology managing cryptocurrency payment does not subscribe to any authority. It means that there are no statutory deductions that end up as taxes. With no deduction, there are less charges when funds move from one crypto-wallets to another. Comparing this system to debit/credit cards where every transaction incurs a transaction cost, cryptocurrency is the way to go.
Furthermore, there are no middlemen in any cryptocurrency transaction. In essence, the more the number of intermediaries in a transaction, the higher the transaction cost. These people, business or regulators eats into the business margins.
Private and Confidential
There are no paper trails involved in any cryptocurrency transactions. Money moves from one crypto wallet to another, with no trace of the transaction once the transaction is complete. During transactions, banking transactions reveal personal and business contact, which might lead to spamming. Cryptocurrency transactions do not show the source or recipient of the funds, maintaining confidentiality. They also don’t check trading history, making each transaction unique every time.