Why Businesses Need To Adopt Crypto Currencies
There is a plethora of reasons why more and more companies are deciding to adopt crypto currencies within their business. The key reason for this adoption is based on offering a way for their customers to make payments to them. Crypto currency is a digital asset and is created with cryptographic protocols which help to ensure security. Consequently, making it difficult for transactions to be faked. There are no intermediaries such as banks, which means that instead of the usual banking practice, crypto currency makes use of decentralised control. This means that it is not controlled by any central authority and so can’t be affected by obstruction or even controlled by a governing body.
Many people believe this is more accurate to how trading should be, and that it is a far better prospect for their business. Currently, there are plenty of different crypto currencies such as Lifecoin, Zcash and Dash, but the most common one is Bitcoin which also happens to be the first-ever cryptocurrency, invented by Satoshi Nakamoto. With the rise of digital currencies and its coverage within the media, it is likely to have heard some snippets about Bitcoin.
In any changing landscape, adaptation needs to occur in order to evolve according to the current climate and trends, thus encouraging success and growth. Business is no different. It is extremely crucial for a business to monitor how its landscape is changing, to prevent it from falling behind by missing out on vital opportunities.
Crypto currencies are an important focus point in a large range of business’ as it is debated over if the digital currency will suit their company model. Some considerations for business owners are as follows; Accepting crypto currency as a form of payment opens up the potential of attracting new customers from around the world as crypto currency promotes cross border transactions on peer-to-peer networks.
A peer-to-peer network is what the internet intended to be; an all-inclusive digital infrastructure that allows people from all around the world to communicate, interact and now transact.
There are some compelling reasons for businesses to seriously consider adopting this growing digital trend and we are going to be looking at those reasons within this article.
For instance, many agree that there is a lot of potential to be gained through the utilisation of crypto currencies and various sectors have been ploughing the money into the system. They have noticed key plus points over the older forms of money trading, which includes enhanced security, helping to eliminate fraudulent chargebacks, reduced transaction fees and a smoother method for international payments. These improvements will directly help the running of a business, and with a better run business one can expect an improved level of customer satisfaction.
The speed in which a transaction is actioned compared to a more old-fashioned method such as a bank transfer. A bank transfer can take up to 10 days to be completed, unlike cryptocurrency that allows money to be moved around at a much faster rate, a clear benefit when waiting for customers payments are concerned. A transaction can be conducted within one hour, a couple of minutes or even a real-time scale with cryptocurrency, and it raises the question why in 2019, a business would still use only the old legacy banking methods when this modern-day alternative exists.
Moreover, another key advantage is this time scale does not just relate to customers who are paying within the same country as your area of operations, this is a system that is not affected by geographical restraints. This also means there is no reason why a product or service can not be truly global, crypto currencies broaden your reach at no extra cost. Furthermore, the advantage of this is that you are looking at a universal measurement of currency, so you can collect the same crypto currency from any region as there is no need to transfer from local individual currencies. Ultimately, waiting for funds to reach is a typical annoyance, and one that can be costly especially if the operating costs of a business are high, so getting around this by accepting crypto currency on your platform will help with transaction time issues.
Set up any infrastructure within a business and there will naturally be concern and consideration over if an enterprise will benefit choosing to adapt it into their business model or not. For example, cost and time needs to be considered, and ultimately whether there are enough benefits offered from having the new infrastructure in comparison to how things were before. This is the case when it comes to payment gateways and everything surrounding them.
Newcomers to crypto currencies may be worried that accepting crypto currencies will prove to be complicated and difficult to adopt but actually, the whole process is easy to get started with, with some clear options. For starters, business owners should purchase the ledger nano, a hardware device that can be plugged into almost any laptop that secures your crypto currency offline and in the most secure format. This is also sometimes referred to as Cold Storage. When setting up the ledger nano, the business owner will be issued with a public crypto wallet address, this is completely unique to the owner. A few other considerations include working with a payment network similar to when accepting conventional card payments online.
Crypto currencies harness the security that is inherent in blockchain technology. Amongst other security benefits, one immediate advantage is that this protects a business from chargebacks as customers are required to show proof of funds before the transaction is completed, offering a superior alternative to the traditional transaction systems that are the current norm.
Final Thought…
The world is increasingly becoming a more digital one and the currency is just another area where that occurs. With the rapid increase in the utilisation of Crypto currencies globally, offers new opportunities for commerce to expand into new markets
