The year 2017 marked the cryptocurrency revolution, with the price of Bitcoin skyrocketed to around $20,000 towards the end of the year. Of course, later on, the prices moderated, and as far as the current scenario is concerned, the prices have been leveled off. Despite this, the interest in digital coins and blockchain technology is continuous on the rise.
Rising Interest and Key Reasons
The increase in the cryptocurrency adoption among all walks of life is very apparent today, more so in the business domain. More and more businesses, ranging from small revenue to large turnover, are coming on board the digital train. Even many countries have realized the importance of digital coins and now altering their regulatory and statutory policies to embrace the ongoing digital revolution. It is not very hard to see why most of the businesses are aligning themselves with the digital revolution. We highlight some of the key points that explain the growing proximity of business towards digital coins and how the crypto revolution is transforming businesses across the globe.
1) Reduction in Transaction Charges: Unlike the other transaction mediums, you need not pay any direct processing fee when you deal with digital coins. It considers as a considerable saving in the cost, especially for large organizations that undertake millions of transactions every day.
Take, for instance, the payment through the credit card wherein a bank acts as an intermediary. The bank will process any payment made through the credit card, and accordingly, the bank will charge a certain amount of processing fee for carrying out the transaction. Cryptocurrencies, on the other hand, are decentralized, which essentially means there is no involvement of third parties in the process (unlike the bank in case of a credit card), thereby reducing the processing fee components involved in conventional transactions. The only expense you have to incur that you are an online merchant is for having a wallet account (Coinpayments or BitPay). These accounts will allow you to accept the payment in terms of various cryptocurrencies and charge a fixed amount for the facility.
2) Faster Transactions: One of the primary merits of dealing with digital coins rather than the conventional fiat currency is the faster transaction speeds that one can achieve with the digital coins. With cryptocurrency being a payment method, transactions happen on a real-time basis. Payment will be credited to the beneficiary account within a matter of seconds or minutes. It is in stark contrast with credit card payments or bank deposits, which takes several days or even weeks to clear.
3) Enhanced Customer Base: With the online taking the lead over the physical stores, the internet is going to be instrumental in spreading the businesses across the segments. The use of cryptocurrency will be able to provide you wider access to the customers. The audience-base you can cater to with the help of digital coins is far greater than the physical reach constrained by the physical boundaries and territorial concerns.
Higher business prospects will ultimately translate into better margins and turnover growth for the company. Even in the B2B segment, we are finding more and more organizations opening up to the idea of cryptocurrency, which helps them to grow their business across nations.
4) Fewer Regulations: Thanks to the decentralized nature of cryptocurrencies, they are not governed by governments or central banks. Digital coins work based on blockchain, which is nothing but a distributed ledger technology aiming to distribute the information democratically among all the participant nodes. While dealing with cryptocurrencies, you need not worry about regulatory changes or government coming up with some new regulation now and then. Less number of regulations also mean there is less hindrance to the business, which in turn translates into more stability and higher business prospects.
5) Adoption of Stablecoin: One of the key impediments in cryptocurrency adoption is the high volatility in the value of the digital coins. It is indeed a very genuine concern, and to overcome it, the field of cryptocurrency is now witnessing the phenomenon of stablecoin. The value of the stablecoin is pegged to some fiat currency, which means the value of the cryptocurrency will not change even in case of the high turbulence in the market. The concept is primarily invented to address the challenge of volatility, and stablecoin has indeed reined in the highly volatile nature of the cryptocurrencies.
Another method that has allayed the volatility concerns is to have a merchant wallet account that converts the cryptocurrency into fiat currency immediately. It means if a customer has paid you in cryptocurrency, then your wallet with immediately transfer the digital coin into fiat money. Because of this convenience, most of the merchant accounts have the automatic cryptocurrency to fiat conversion feature, which minimizes the risk of volatility and loss in value for the businesses.
Summing It Together
Despite some inherent challenges, the march of cryptocurrency to become a future mainstay transaction medium is heading in the right direction. With more and more countries now opening up to the idea of digital coins, the contentious issues of opaque policies and non-standardized policy frameworks are also expected to get some clarity soon. Once that happens, the adoption of cryptocurrency is sure to gather the momentum further.