As quoted by Deloitte, 86% of the tech-savvy executives already see a lot of potential in blockchain and cryptocurrency.
Cryptocurrency has literally become the talk of the town. But… for all the right reasons. It is a form of payment that uses blockchain technology. These cannot be touched by human hands but are still as real and as worthy as real money. Think of them as casino chips. You exchange money in order to get them. As CoinMarketCap.com reports, around 6700 cryptocurrencies are traded publicly. The most common of these are Bitcoin, Ethereum, Ripple XRP, Litecoin, NEO, and IOTA.
Individuals also trade in cryptocurrency for short and long-term profits, but that is just not it. Even businesses can make use of cryptocurrency. Why? We’ll tell you why.
Wait. Did you know that the price of bitcoins increased by 66% in Feb 2021? (Source: Tech Crunch)
1. Cryptocurrencies have lower transaction costs
If you make a lot of transactions every month, the overall bank transaction fee would be huge. When you review your statement, you will find that you pay a transaction fee for each transaction you make. When dealing in crypto, Data miners would receive their compensation from the cryptocurrency network, so the transaction fee would be less or next to nothing. If you entrust the responsibility for the maintenance of your crypto wallet to a third party, you must pay for a third-party service. However, the transaction fees charged for cryptocurrency transactions would be lower than the banking system.
Businesses make use of cryptocurrencies in many ways. About 900 different cryptocurrencies have been introduced daily in 2021. (Source: Buy Bitcoin Worldwide)
Check out the price of bitcoin. Even when it dips, someone who held them for years will not fare bad, overall.
2. Extremely secure
Why did it appeal to the masses in general? Because it is secure.
When you make a cryptocurrency transaction, you cannot cancel or get it reverted. Reliable encryption techniques will be used during the cryptocurrency transaction process to protect against hackers and information tampering. You can buy literally anything on this planet using cryptocurrencies. Be it a property or even cars from online sellers that deal in buying and selling cars for crypto like Auto coin cars.
You would be glad to know that about 90% of the banks in the United States started to explore the potential of blockchain by 2018. (Source: Law Technology Today, BlockTelegraph)
3. Extremely fast and seamless
They literally take out the middleman.
Removing the brokers and agents means that the transaction is completed immediately after your approval. The money does not go to the banks, where it can take days or weeks to be transferred to the account. Rather, they get compensated immediately.
Cryptocurrencies are not something that one should resort to only as an investment, but they can actually be used for all kinds of transactions in place of modern paper currencies.
4. It can be used to buy and sell assets
When we say assets, we do not mean just any asset, but also an asset with a huge carrying value.
If you are the person who holds the cryptocurrency and has account privileges, you can reduce the time and expense associated with asset transactions. Cryptocurrencies can help transfer ownership of assets under one name to another by paying sellers via bitcoin. It’s all happening in a blockchain ecosystem. It allows you to easily perform transactions safely and securely. Cryptocurrencies would be designed to add third-party approvals and may be completed in the future.
(Whispers: if investment banks start using crypto and leverage blockchain technology, they will be able to cut at least 30% of their infrastructure cost. Who said it? Accenture Consulting)
5. Gives you greater and easier access to credit
The cryptocurrency ecosystem has the potential to make asset transfer and transaction processing available to this vast market of consumers who are willing; however, only after the required infrastructure (digital and regulatory) is in place. Digital data transmission and the Internet are means of communication that facilitate the exchange of cryptocurrencies. Therefore, these services are potentially available to anyone with a valid data connection, some knowledge of the cryptocurrency networks on offer, and easy access to their respective websites and portals.
6. International trade made easy
If you are operating a business that deals with international clients and exports and/ or imports goods from all over the world, this should be the best thing that would ever happen to you. International trade becomes extremely easy with cryptocurrencies. Thanks to the peer-to-peer mechanism of blockchain technology, cross-border transfers and transactions can be carried out without having to worry about any complications resulting from exchange rate fluctuations, etc. cryptocurrencies are not inherently subject to any exchange rates, interest rates, transaction fees, or other charges imposed by a particular country as they are not recognized as a legal tender on national levels.
Need something to boost your confidence more?
Check out how the price of Ethereum has reached a hike that cannot be reverted even after facing severe dips.
7. It is highly adaptable
There are some “privacy coins” that help disguise your identity on the blockchain and supply chain tokens that can assist supply chain operations for different types of industries. There are currently more than 1,200 unique cryptocurrencies or altcoins in circulation around the world. Many of them are used for varying purposes, but much of these were created for specific use illustrating the flexibility of the cryptocurrency phenomenon.
While cryptocurrencies are yet to be recognized as a financial instrument under US GAAP, they have the potential to revolutionize how businesses deal and make transactions. It does calls for amendments in policies of how businesses document and pay taxes, but the great deal of money that it can save, the convenience it can provide, and the array of possibilities that would open when all businesses start using cryptocurrencies is unfathomable.
This market would already grow up to $20 billion by 2024, so why wait?