Cryptocurrency is a virtual or digital currency that is becoming a preferred medium of exchange for many people and major companies. It is devoid of government or bank control.
It is well known for its safety and its underlying innovative blockchain technology. Many experts have called it the future of the world.
Now that cryptocurrency is becoming more mainstream everywhere, are you wondering if your business should get on the bandwagon? Would cryptocurrency be suitable for your business model?
In order to make the right decision, you will need to know the pros and cons of cryptocurrency for your business. This article can provide you with the information you need to make the right decision.
The Advantages of Accepting Cryptocurrency
Minimal Transaction Fees
As aforementioned, the best part about cryptocurrency is its lack of unnecessary interference from intermediaries. For years, people have felt tormented by the fees they pay whenever they use credit cards.
Cryptocurrency provides an effective solution for this problem by eliminating the middle man. The processing fees for this payment method are usually below 1 percent. The processing fees for this payment method are usually below 1 percent of the BTC price.
Another issue that has mainly assailed merchants for many years is the problematic nature of security with third parties involved.
Thanks to blockchain technology, merchants receive excellent protection from fraudulent chargebacks where customers get items from them when they don’t have money to purchase them.
All the cryptocurrency transactions are stored in a ‘ledger,’ which allows for easy traceability, more transparency, and accountability.
Crypto payments come with very effective payment protocols, making it a convenient mode of paying for goods and services. Many online retailers have already started adopting cryptocurrency as a payment method.
The processing is very fast, and you don’t have to wait for a long time to receive your payments. You can receive it right away in real-time.
Strong Company Position and Branding
For those companies that are willing to be open-minded about cryptocurrency as a payment option, the experience with the sophisticated, cutting-edge technology may help strengthen the business position in many ways and do wonders for it.
Statistics have shown that customers, particularly the young millennial generation, prefer online retailers who have digitally-based, smart payment methods. Hence, by having a cryptocurrency payment option for your business, you will effectively cater to your customers’ needs and look more appealing to them.
A significant advantage of having cryptocurrency as one of your payment options for your business is that it opens you up to the entire market around the world as cryptocurrency cuts through all the barriers and restrictions with great ease.
The Major Industries are Using It
The major industries like food, tourism, and retail have already embraced cryptocurrency with great zeal. Interestingly enough, it is very likely that we may even see banks embrace cryptocurrency as regulation around it may become clearer with time. Julius Baer Bank in Switzerland and USAA in America have already proceeded with this trend.
There are already many cryptocurrency payment apps out there. People are realizing the many great benefits that come with using blockchain or crypto wallets for their day-to-day transactions. Avid investors rely on many crypto wallets and trading terminals like Bloomberg terminal for crypto to make more money.
While Bitcoin is the most well-known of all cryptocurrencies, people are increasingly becoming interested in many other types of cryptocurrencies more than ever. Hence, it makes sense for businesses to jump on this trend and embrace cryptocurrencies.
The Disadvantages of Accepting Cryptocurrency
Technology Takes Time to Become Familiar With
There are a few disadvantages that come with businesses accepting cryptocurrency as a payment method. For those business owners who are not technologically savvy, cryptocurrency can pose many difficulties, and it can take some time to get familiar with it.
After all, many people are studying technology as a serious upcoming field with many job opportunities.
The next significant disadvantage of cryptocurrency is its volatility. Cryptocurrencies are among the most volatile digital currencies, and due to their unpredictable nature, many people shy away from them.
However, a business can find ways to deal with the volatility by using a merchant service company to turn digital currency into cash value quickly.
Security Risks Can’t Be Entirely Eliminated
While it is true that cryptocurrency is among the most secure payment options to existing right now, security risks still exist, and users need to take security measures like using Multi-Factor Authentication (MFA), having private keys, and changing passwords regularly.
Lack of Regulation
This is one thing that businesses must be wary of. Governments around the world are still quite unclear on how to frame regulations around cryptocurrency, and there might exist a possibility for unexpected changes.
Accepting Cryptocurrency: Summing It All Up
After weighing the pros and cons, if you finally decide to include cryptocurrency in your business, make sure to have a proper implementation plan that takes into account all your objectives and tracks your progress to get the best results.