During the current financial crisis, beyond finding opportunities, there are big chances to create new business ventures. Companies that are being able to capitalize on the crisis are rapidly growing and becoming leaders in their industries.
Let’s briefly mention the many factors playing in this complicated global financial situation: the United States’ debt crisis, the euro zone’s debt crisis, the Chinese stock market crash, and the oil price crash, all of these issues have led to a decrease in the value of many stocks, currencies, and commodities around the world. This has obviously led to a decrease in the overall global economy.
The crypto market is also suffering the effects of this global situation, even after the crypto bull market of 2020–21. Certainly, a lot has been going on in the crypto world over the past year or so. Bitcoin and Ethereum, the two largest and most well-known cryptocurrencies, have seen their prices skyrocket and crash multiple times. Other cryptocurrencies have emerged, such as Litecoin and Bitcoin Cash, which have seen their values fluctuate as well. At the moment, some experts believe that they will continue to see wild price swings, while others believe that they will eventually become mainstream and have a more stable value.
The truth is, cryptocurrencies and Blockchain technology are still in their early developmental stages. However, despite many cryptocurrencies are still unstable, as technology advances and regulators begin to understand the potential benefits of these new technologies, it is expected that their stability and value will continue to increase, as well as their mainstream use.
Meanwhile, on the brighter side of crypto…
… cryptocurrency payments are becoming increasingly popular as an alternative to traditional fiat currency. Crypto payments allow users to transfer funds from one user to another without the need for a third-party intermediary, such as a bank, yet in a faster and more secure process.
But, how is this possible? Firstly, crypto payments are decentralized, meaning that the funds can be transferred securely and quickly without the need for a third-party intermediary. Furthermore, crypto payments are anonymous, allowing users to make payments without having to reveal any personal information. In addition, crypto payments are tamper-proof, meaning that transactions can’t be modified or reversed once they have been completed. And lastly, since cryptocurrency payments are not tied to any particular country or government, they are also immune to inflation or other forms of currency devaluation. These benefits make cryptocurrency payments a viable alternative to traditional payments in fiat money.
Main benefits of accepting crypto payments
✅ Broaden your customers
Accepting cryptocurrencies puts your business in the radar of cryptocurrency users that can be converted into new clients. This means early approaching an interesting consumer segment: 94% of crypto buyers are Gen Z or Millennials.
✅ No country barriers
Cryptocurrencies are a great choice for businesses that operate in a global market. since they’re not subject to country barriers, and that they can be used instinctively anywhere in the world.
✅ Fast payment processing
Cryptos allow businesses to accept payments for goods and services rendered in seconds, and buyers to obtain what they pay for in a matter of minutes. Fast payment processing enables companies to gather the funds they require to operate and grow. And the immediate order fulfillments to their clients, makes a company more attractive to customers.
✅ Inflation hedge
To mention a few, Bitcoin, Litecoin, and Snack are cryptocurrencies with a limited supply cap that are considered strong inflation hedges. Due to monetary inflation, which occurs when central banks and governments print more money, the value of scarcer things rises. The price of these fixed-supply coins, measured in dollars, is more likely to climb as more new dollars seek fewer and fewer coins. Furthermore, the cryptocurrency system, for example, is designed to keep those coins unique regardless of what happens with monetary policy. Currently, no real-world scenario supports the hypothesis that crypto will hold as an effective inflation hedge.
✅ No chargebacks
Companies can benefit from implementing cryptocurrency payments by reducing transaction costs, avoiding chargebacks, and providing a secure and reliable payment experience. Additionally, with cryptocurrency payments, companies can expand their customer base to those who do not have access to traditional banking services. As the cryptocurrency market continues to evolve and mature, companies are expected to continue to see the advantages of accepting digital currencies.
✅ Reduced cost of transactions
Businesses that accept cryptocurrency might interact directly with customers or use a broker. The cost of a transaction is meagre when there is no intermediary.
✅ Additional security
The fact that a cryptocurrency like Bitcoin, Ethereum, Ripple or Snack is self-protected from government control is the main reason for its success. Digital currencies can protect themselves from bank failures, hyperinflations, and other economic crises because they are not linked to any money or regulated. But this does have its downside. Lack of regulation does attract rogue and mischievous elements. Digital currencies are developing a competitive edge over other currencies due to increased industrialisation and technological involvement. Automation, cryptocurrency, and blockchain (intended as broader than just payments) are all instances of how new technology will continue to develop and reshape the financial landscape.
How to avoid the cons of accepting crypto payments
⚠️ One of the main concerns many businesses still have when considering crypto payments resides in the regulatory measures currently applicable to each specific situation. As more and more businesses worldwide adopt cryptocurrencies, more countries will likely introduce regulatory measures to tame money laundering that may happen. If your company is looking to accept cryptocurrencies as payment, be sure to understand your regulatory compliance landscape, choosing the right partners to ensure the security of your crypto wallets and have clear accounting standards.