Just a few years ago, a lot of people didn’t have the slightest clue what cryptocurrency was all about. Words like blockchain and initial coin offering were like foreign words to the regular internet user. Only a select few made up of tech geeks and early adopters of digital currency knew about this relatively unknown asset. Many thought this was a fad that wasn’t going to last, but everything changed when Bitcoin dropped the bomb with an off-the-charts value surge.
Reaching an all-time high of almost $20,000, Bitcoin created a strong trend, even putting the lesser-known players in the crypto industry on the map. This prompted the early adopters to increase their initial investments, while catching the attention of business owners due to the encouraging numbers. They have all figured out that cryptocurrency had the potential to become a rich source of investment capital for their companies, and they were right on the money.
Both cryptocurrency and blockchain technology have opened endless possibilities with their applications in processes across different industries. They are now an attractive option for the number of benefits businesses can glean from them. To further encourage folks to study tips before buying cryptocurrency at different cryptocurrency resources and delve into the digital asset, we should go through some of the advantages startups and small businesses can take from it.
Fast and Secure Transactions
For security reasons, bank transfers are increasingly becoming more complex, taking several business days before they are completed. This isn’t ideal for small business and startups with small revolving funds that cannot wait that long. Here are two ways blockchain technology can help:
Blockchain has changed the way transactions are recorded with its lightning-fast transfers. Since the payment is sent between two verified digital wallets, it only takes a few seconds to as long as 20 minutes to complete a transaction. This helps small business and startup owners to focus more on improving their services with peace of mind.
With the way blockchain works, there is no central entity to manage these transactions, so nobody can just hack into the system to manipulate the ledgers in their favor or steal coins.
Lower Transaction Costs
The absence of a central governing body to oversee transactions reduces the need for transaction fees. Startups and small businesses that accept credit card payments are often subjected to an individual fee for each swipe, plus a percentage of the transaction total. When they all add up, the charges can be burdensome for these small players that are trying to make it big.
These almost instant, transparent and trustworthy transactions are also cost-effective, potentially giving startups a much-needed advantage over established players in the industry.
Since almost every merchant has moved on from cash to online transactions, customers are given a variety of payment options to choose from through a POS system. Credit cards, debit cards, online banking and some e-wallets are now being utilized, with cryptocurrency easy to integrate into the accounting system as an alternative mode of payment for buyers.
Increased Profit Through Higher Sales
Cryptocurrency’s decentralized nature allows startups and small businesses to grow by opening their doors to customers outside their locality. Retail shops can boost their sales to multiple countries that trade cryptocurrency as payment for products, helping their business become competitive on a global scale.
Cryptocurrency can also be a huge draw to your business by letting your consumers know you are utilizing blockchain technology. An iced tea company, for instance, capitalized on the trend when they changed their name to include the word ‘blockchain’ itself in the brand name. They saw a massive jump in stock prices regardless if they did nothing to change their business process.
Huge Investment Opportunities
It can’t be denied that cryptocurrency has many practical uses. But, let’s not overlook the fact that it can be used to increase the financial holdings of both individuals and companies when it has likewise increased in value.
If you think about it, one Bitcoin purchased back in 2010 for less than US$1 climb to a whopping US$20,000 in its peak. Even at its current price of over US$7,000, you still earned big from your initial investment.
Although many countries do not recognize cryptocurrency both as a financial instrument and investment vehicle, the regulatory and legal cryptocurrency landscape is changing rapidly. Countries such as Japan, China, and Russia are making considerable headway in legalizing cryptocurrencies. It makes sense to invest in cryptocurrency straightaway to reap huge rewards later.
As technology rapidly changes the financial landscape, cryptocurrency is a valuable option for startups and small businesses to have an edge in their specific industries. The sole nature of the digital asset has opened doors for the small players to take advantage of its benefits. This is the perfect time to ride on the momentum of the cryptocurrency trend, so it could help catapult your startup company or small business into the future.