Cryptocurrencies are the new gold rush for many people. It’s natural to be curious about whether your business should start accepting them. Many businesses around the world have already started accepting cryptocurrencies. Even Tesla has announced that you can now buy their merchandise using an altcoin called Dogecoin!
So should you also start accepting cryptocurrencies? In this article, we will be giving you a thorough overview of why you should allow customers to pay with cryptocurrencies.
What are cryptocurrencies and how do they work?
Cryptocurrencies are the most famous application of blockchain technology. The most popular cryptocurrency is Bitcoin but they are also called altcoins because they are alternatives to Bitcoin.
To put it simply, a cryptocurrency like Bitcoin for example isn’t printed like paper money – it is mined. You can use special software to solve mathematical algorithms and when you do so, you get a digital coin.
What makes cryptocurrencies valuable is that they’re decentralized. No single party controls them and everyone has access to all transaction data at all times. This is possible because of the distributed ledger called blockchain which stores all transaction records.
What are the benefits of accepting cryptocurrencies?
Now that we know what cryptocurrencies are and how they work, let’s find out the benefits of using them as a payment method.
1. Low transaction cost:
Using cryptocurrencies for transactions is cheaper than the normal 2-5% credit card transaction fee. The reason behind this is that you don’t have to pay a third party like Visa or Mastercard so you don’t have to pay any commissions to anyone.
2. Faster:
Cryptocurrencies usually take a couple of minutes to an hour to confirm. Credit card transactions can take days to complete and sometimes even weeks!
3. The value of cryptocurrencies May increase:
Due to inflation, the value of fiat currency decreases year after year. Cryptocurrencies, on the other hand, are growing at a much faster pace and it’s expected that they will be worth more in a few years from now.
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4. Tax Benefits:
As of now there are no taxes imposed on cryptocurrencies. If you pay someone in bitcoins, you will receive the exact amount of money you’ve been sent without any extra fees or taxes.
5. Easier For International Transactions:
Cryptocurrencies aren’t limited to a country or region. You can send and receive cryptocurrencies from another country without having to exchange currencies which saves you time and money!
What are some of the advantages of using cryptocurrencies for your business?
Everything worth having comes with a price and so do cryptocurrencies! Below are a few of the disadvantages of using cryptos as one of your payment methods.
1. Lack of Protection:
There is no way to recover your cryptocurrency if someone hacks into your wallet, as opposed to credit card transactions which offer some form of protection for consumers.
2. Volatile Markets:
Cryptocurrencies are quite volatile and this can be both an advantage and a disadvantage depending on how you look at it. The value of cryptocurrencies usually goes up and down within a few days which means you might make or lose money depending on the market.
3. They Are Still New:
Not many people know about cryptocurrencies and not many people use them. This could be a disadvantage for you because your business will lack credibility.
4. The Setup Process is Complex:
You can’t just start accepting cryptocurrencies in your store. You’ll need to set up wallets, exchanges, and other methods for handling cryptos. It’s not something you do daily, so it might take time to understand how things work.
Conclusion:
As you can see there are both advantages and disadvantages of accepting cryptocurrencies. The benefits of accepting cryptos outweigh the disadvantages in most cases, but you’ll need to keep in mind that not many businesses accept them at this point. However, as time passes things will change. As more people get familiar with cryptocurrencies, more businesses will start accepting them. Remember that cryptocurrencies are the future of money. If you need help with accepting any form of payments for your business including cryptocurrencies, make sure to book a free consultation call with here and let us help you
Get A Free Consultation
Book a free call with us to discuss how we can help you expand in new regions, scale, and get the cash flowing in your business.
