Cryptocurrency Will Change the Business : Are you aware of the idea of crypto? About 15% of people in the US now own some sort of digital asset such as bitcoin and ethereum. A large number of such investors have been buying cryptocurrencies in the past two years.
You should also know about security for bitcoin trading to Irrespective of the investment stance, you and your business transactions’ future will be impacted by cryptocurrency.
Tesla Elon Musk Invested $1.5 Billion Into Bitcoin
Elon Musk, the self-proclaimed “TechnoKing” of Tesla, has recently made quite a name for himself in headlines. From being a leader of the meme-coin Dogecoin and likely having a massive hand in pumping Bitcoin after updating his Twitter bio to include Bitcoin and subsequently buying $1.5 billion worth of Bitcoin for Tesla, Musk and Saylor have put a face to the institutional acceptance towards cryptocurrency. Recently, Tesla has also announced that customers can now buy their vehicles using Bitcoin.
PayPal is also an adopter cryptocurrency
PayPal originated as one of the pioneers in digital transactions. Due to their history of promoting and simplifying transactions across borders within minutes, it only makes sense for them to jump on board for cryptocurrency.
More recently, they have introduced the ability for people to both purchase and transact with cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. However, crypto enthusiasts have criticized PayPal for not letting users transfer their coins to a private wallet. Perhaps this is a feature that may come in the future and is a step in the right direction.
Visa and Mastercard have supported the use of bitcoin
The two largest platforms have publicly supported the use of bitcoin for making payments around the world. For example, Visa is allowing transactions with stable coins on the Ethereum blockchain.
Mastercard has followed suit and recently announced that their customers will begin transacting with crypto in 2021. With the two big payments giants on the train, it seems the doors are open for wider mainstream adoption and practical use among business owners in the times to come. years.
What will cryptocurrency do for a company?
- Here are some reasons why so many companies are now using this digital currency to help a company understand the benefits of using cryptocurrency:
- It will provide access to the latest demographic groups.
- Often users represent highly cutting-edge clients who value transparency of transactions.
- According to a recent study, many customers who pay using cryptocurrency are typically new customers to the company and their purchase amount is twice as high as that of a credit card user.
- Along with the introduction of cryptocurrency, it will boost internal awareness in the company about this latest technology.
- This will help position the company in such an important emerging sector for a future that could include central bank digital currencies.
- Cryptocurrencies will enable access to some new capital or liquidity pools through traditional investments and new asset classes.
- It also offers some options that are not available with fiat currency.
- Programmable funding will enable accurate and real-time revenue-sharing and increased transparency to facilitate certain back-office agreements.
- Many companies are understanding that significant customers and some vendors want to engage using cryptocurrencies.
- Therefore a business should be positioned to receive and distribute cryptocurrency to ensure smooth exchange with the primary stakeholders.
- Cryptocurrencies offer a new way to enhance a host of traditional activities such as enabling real-time, simple, safe and secure transfer of funds, helping to consolidate some control over venture capital, and in digital investments. Managing all risks or opportunities to engage.
- Cryptocurrencies can serve as an efficient substitute and balancing asset for your cash which may depreciate over time due to inflation.
- It is known to be an investable digital asset and has performed extremely well by some like bitcoin over the past five years.
Crowdfunding And Raising Capital Is More Transparent
People love to use online platforms for raising money. This way, fundraising is done transparently. Also, it opens up the ability for people to publicly ask for funds and explain why. In the future, platforms like these will probably continue to be used.
However, crowdfunding with a dedicated blockchain wallet will keep the total amount of donations open to the public. In the same manner, it will allow the fundraisers to avoid fees from third-party platforms without sacrificing the donors’ trust. A crypto wallet also allows all parties to see how much donations have come in.
Crypto As A Viable Form Of Payment
One of the main criticisms given towards crypto is that there is no inherent value. Indeed, the value it has is the value that the world provides it. However, the same could be said for worldwide fiat currencies that have long strayed away from the gold standard.
Strong advocates for holding gold knew for years that extreme printing of money would lead to a devalued currency. Since gold has a relatively finite supply and has historically been seen as valuable, they use it as a hedge against inflation and a means of keeping the government out of their bank accounts.
Interestingly, some of the staunchest cryptocurrency users hold coins for many reasons that people hold gold. The main difference between the two is the very young age of cryptocurrency, having no proven history of long-term value.
What crypto does do well is the ability to keep your coins secure using an offline wallet and having a finite supply that encourages exponential growth of value as demand increases. With the ability to instantly transfer coins anywhere globally, the change in demand and overall value of cryptocurrency could make it a popular means of payment in the business world and peer-to-peer.
Using Crypto For Business Equity
One of the popular trends we see in the modern business world is giving early employees shares of the company profits. Considering the vast growth of crypto in the past decade, providing new employees a “company” cryptocurrency as equity shares could be a huge new trend.
In any case, it will be interesting to continue monitoring the future of cryptocurrency unfold. What we could see happen is a revolution in the financial field or a colossal disaster for the investors who have since made a fortune off the growth of crypto.