Impact of Bitcoin and Other Cryptocurrency on Small-scale Business
By now, you’ve heard about cryptocurrency and the underlying blockchain technology. If not in detail, at least you would have seen people debating about it in a media house.
Cryptocurrencies are digitally created assets that store every transactional data in the immutable distributed ledger inside the blockchain in the form of encryption.
Right now, people across the industries are discussing how it can be inducted in the real world? What are the transactional benefits compared to the traditional fiat currency? Most importantly, how is cryptocurrency going to benefit small businesses and consumers?
Along with the questions mentioned above, you may have various other questions about cryptocurrency. In this article, we will help you with experts’ insights and opinions to decide on whether cryptocurrency is beneficial to your business or not?
Before getting into the details about cryptocurrency and its benefits to your business, let me enlighten you with some recent updates in the crypto world.
- India’s top court quashed the RBI’s ban on cryptocurrency.
- France is developing its own stable coin.
- Microsoft patents a new cryptocurrency mining system that leverages human activities.
- The South Korean National Assembly passed new legislation that will provide a framework for the regulation and legalization of cryptocurrencies and crypto exchanges.
Now, we hope you would have understood that it is not only a small group of people talking about it. Many businesses and central banks of both developed and developing countries are figuring out ways to bring in cryptocurrency into the mainstream finance infrastructure.
Due to a surge in cryptocurrency usage and a large volume of crypto trading, there is a growing demand for cryptocurrency app development companies across the world.
If you are an entrepreneur, running a startup or a large enterprise or small-scale business, you would have dealt with both offline and online payment as a part of your business transaction.
In that case, let me ask you a question.
Which mode of transaction is convenient for you - offline or online?
It’s online, isn’t it?
The digital payment facilities like Google Pay, Apple Pay, PayPal, etc. has brought in remarkable changes in the way we transact. Undeniably, these digital payment methods offer low-risk transactions to your business and a high-level convenience to the users with just paying a certain amount as a transaction fee to the banks or any third-party service provider to conduct such a transaction.
But what if I tell you that cryptocurrency can enable you to transact with high-security, and provide easy transaction with meager transaction charges than the digital fiat transaction.
While you are still unsure about adopting a cryptocurrency payment system as a part of business transactions is worthy or not, many traditional industries are partnering with blockchain startups and cryptocurrency development companies.
For example, you can pay for your flight tickets with cryptocurrencies CheapAir.com, Destinia.com, and Microsoft now lets users make payments for Xbox games, apps, and other digital content.
If you still want more reasons to decide on business transactions through cryptocurrency - here are the top reasons why accepting cryptocurrency will be beneficial to your business.
- Lower Transaction Fees & Quicker Transactions
- Reduced Transaction Fraud
- Acquisition of New Customers
- Brand Visibility
- Access to World Market
Lower Transaction Fees
Crypto transaction doesn’t involve any kind of processing fees. As a business owner, it is essential to avoid any unwanted cost to improve your business. With cryptocurrency being decentralized and having no centralized regulatory authority, there is no transaction fee. At the same time, it provides a quicker transaction facility than regular bank transfers.
High-security & Reduced Transaction Fraud
In a digital payment system, a secure transaction is key. Be it net banking, credit cards, UPI service, mobile banking, PoS and Mobile Wallets, etc. In the existing system, all the transaction data is stored in a centralized server, which is an easy pick for a hacker to access all the information in one go.
Credit cards help to purchase things with ease, but at the same time, you can’t negate its international fraud risks.
Since every transactional data is stored inside the decentralized blocks, once the transaction is made, it cannot be reversed or canceled. It means security is much higher than the existing method. As any central authority does not oversee the operation, customer confidentiality is maintained.
New Customers Acquisition
Already, there are millions of people around the world who trade exclusively on bitcoin and other cryptocurrencies. So, if you adopt cryptocurrency payment as a part of your business transaction, you will have more people who prefer to transact in crypto, and you have the opportunity to expand.
Increasing Brand Visibility
As mentioned above, there are millions of people who prefer crypto transactions; in such cases, by accepting cryptocurrency, you can easily distinguish from the competition and increase brand visibility.
It will surely lead to word of mouth free advertisement for your business. There is no better marketing than word of mouth.
Access to World Market
Huge demand and a big market share are what every business needs to grow and expand exponentially. Even if you have an online business presence, there is difficulty in accessing international markets like global waiting time to process international transactions and high-cost exchange rates.
As cryptocurrency is not owned by any centralized institution, and by providing 24/7 processing, you can increase sales.
The adoption of cryptocurrency will continue to grow. So, by accepting digital currency, small businesses have the opportunity to streamline the process and capture the market being a market leader in your sector.
To accept payments, you need a cryptocurrency digital wallet. Unlike, digital fiat currency wallet, which stores your money value, you can save your public keys and private keys to send or receive any cryptocurrency. There are different types of digital wallets: Hot wallet and Cold Wallet. It is further classified into a software wallet, hardware wallet, and paper wallet. Based on your requirements, you can choose the type of wallet you need.
Currently, we are in an initial stage of cryptocurrency adoption in the real world. If you are a small business entrepreneur who is looking to accept cryptocurrency, it is a right choice. At the same time, you need to be prepared to adhere to the legal requirements brought by the governments, financial institutions, and learn to overcome all the technical hurdles. Cryptocurrency provides an incredible opportunity to businesses who want to expand their market.
We hope now you have a clear understanding of the implications of cryptocurrency transactions to small-scale business. To help you further, there are a lot of cryptocurrency developers in India and other countries who can help you drive business growth. Choose expert blockchain developers based on your need and flourish your business globally.