Unless you’ve been living out in space, you’ve seen the news about cryptocurrencies, and you know about the strong performance of digital currencies like Bitcoin, Litecoin, and Ethereum.
In 2016 Bitcoin was valued at about $1,000 and now has crossed more than $56,000 per coin. Other more minor digital currencies have also increased in value, sometimes reaching higher rates than Bitcoin.
Digital Currency
The new digital currency is based on blockchain technology, which allows for consistent and safe financial transactions that are safe and decentralized through millions of global computers.
It is a mathematical technology where very few people understand the full scope of its existence. Even so, cryptocurrency is here to stay, and many businesses are adopting the new digital currencies Because of the varying benefits it gives them. Here is a list of four benefits businesses have when using digital currencies.
Lower Transaction Fees
Credit cards can charge a business very steep usage fees that range from 2 to 5% on each transaction. When businesses use blockchain, a much lower price applies; sometimes, there is no fee to the company. Avoiding unnecessary fees allows businesses to grow more quickly since their finances can be used for other necessities.
No Chargebacks
As fraud is not an issue with Bitcoin transactions, businesses can avoid chargeback charges that come from fraud. For example, in some credit card transactions, customers will purchase a product, use it and then ask for a full refund from the credit card company. This fee is usually charged back to the business that sold the product. This option is not available to people who pay for goods and services using Bitcoin or other cryptocurrencies.
Faster Payment
As opposed to a credit card payment that can take weeks to arrive, Bitcoin payments are made almost immediately. There is only a small fee for the transaction, or in some cases, no fee for the business. This can be useful for E-commerce businesses that need to handle transactions quickly and efficiently. Smaller businesses have to prioritize their time wisely, so having the ability to make and receive payments quickly is imperative.
Makes Good Business Sense
Consumers buy BTC cryptocurrency. They invest money, watch it grow and now need a place to spend their digital currencies. It makes good business sense to accept these new currencies as it offers new sales opportunities and increased brand awareness for Innovative businesses that take advantage of recent digital and technology trends.
No Inflation
Many emerging economies have governments and banks that inflate the currency to solve some financial issues. However, there is no inflation when using Bitcoin because of the algorithms used in this new financial system. Of course, it is always important to do thorough research before investing in cryptocurrency. Assessing a currency’s value will help you better understand how to properly budget your money when you buy bitcoin.
Large digital businesses across the globe are beginning to accept cryptocurrency as payment methods. Suppose you don’t make the necessary changes and welcome the new digital currencies; your business could fall behind. It could result in the loss of customers. Using forms of crypto as a payment method is an intelligent way for companies to demonstrate they are on the cutting edge of technology.
