The Rise of Cryptocurrency in Business
Cryptocurrencies are becoming more and more commonplace as time goes on. Some businesses are choosing to accept them as payment, while others are mining them. What benefits does cryptocurrency offer businesses?
Introducing crypto now may help spur internal awareness in your company about this new technology. It also may help position the company in this important emerging space for a future that could include central bank digital currencies. Crypto provides a new avenue for enhancing a host of more traditional Treasury activities, such as:
- Enabling simple, real-time, and secure money transfers
- Helping strengthen control over the capital of the enterprise
- Managing the risks and opportunities of engaging in digital investments
Crypto may serve as an effective alternative or balancing asset to cash, which may depreciate over time due to inflation. Crypto is an investable asset, and some, such as bitcoin, have performed exceedingly well over the past five years. There are, of course, clear volatility risks that need to be thoughtfully considered. Let’s dive into some ways that crypto can further benefit a business.
First and foremost, cryptocurrency is a secure payment method. Transactions are carried out anonymously, and fraud is much less likely than with traditional payment methods. This is because merchants don’t need to share any personal information in order to accept payments. In addition, cryptocurrencies cannot be counterfeited.
Cryptocurrencies can also help businesses save money on fees. There are no transaction fees associated with processing payments with cryptocurrencies, which can save companies a lot of money over time. Additionally, there are no chargebacks with crypto payments; once a payment is made, it’s final. This can be helpful for businesses that deal with scam artists or customers who try to take advantage of the system.
Another benefit of using cryptocurrency is that it’s global. Payments can be processed anywhere in the world without encountering any currency exchange rates or other penalties like those often associated with international credit card transactions. This makes doing business abroad much simpler and cheaper for companies.
Finally, cryptocurrencies are deflationary currencies meaning that their value usually increases over time as opposed to traditional currencies which usually decrease in value over time due to inflation. This could mean greater profits for businesses that invest in them now and hold onto them for a period of time.