The following article tells us how digital currencies can also be of multipurpose; Being a payment or also an investment tool. This article explains how:
AS the Bitcoin reached a new all-time high on earlier this year, crossing the $40,000 level, entrepreneurs all around the world have started questioning themselves, whether not adapting to or transforming their finances and payment methods into cryptocurrencies was a missed opportunity, which may have compromised the growth of businesses in the shorter term as well as the in the long term.
The reason for the price surge does not seem to be based on hype, but instead, as pointed by Geton Ecosystem’s CEO, Milan Kozlevčar believes that the soaring prices of the bitcoins are not due to the hype or other superficial reasons but rather according to him:
“During the recent Covid-19 crisis, people and investors are searching for other sources of investment which yield greater returns relative to the savings in bank deposits.”
In the recent times, a large number of organizations and businesses have begun accepting payments in Bitcoins and other cryptocurrencies, a great proportion of them still using a hybrid of both digital currencies as well as fiat payments with Bitcoin remittances settled with the backing of an equivalent processor.
Big global companies like AT&T, Wikipedia and Microsoft have begun accepting Bitcoin and other digital currencies, along with almost one third of small and medium enterprises in the United States.
Several banks have also begun accepting cryptocurrencies, especially bitcoins, as a deposit method. Also, Bitcoin ETFs (Exchange Traded Funds) are a very common investment these days.
However, other than the common application of Bitcoin as a payment method for businesses and their growth, we have identified and categorized 4 other ways it can assist you grow your business.
1. Relatively Lesser Payment Fee Charges
Progressive fees on payments is also one of the major pros of using bitcoin for payments. Compared to this, some of the payments businesses make with their cards may eventually become extortionate and cause to be a hurdle in your business’s growth. Conversely, Bitcoin provides a wide range of fees, thereafter allowing you to manage your expenditure on finances. Also, no fee is charged for accepting any bitcoin either.
Bitcoins also have the option to be used as payment for other services; this option proves to be as an alternative to the use of business credit cards for making payments or for other services. Also, given that no banks are involved in bitcoin transactions, there are no bank charges involved. Which also means lesser overall charges and costs across the board.
Given that a lot of businesses around the world have also accepted bitcoin as payment methods, and rather use it themselves, the hassle of currency exchange, and the costs associated with it are also bypassed.
2. Securer i.e. Greater Shield Against Fraud
Another major concern for all the businesses, belonging to all types and sizes, given they operate on the internet, is Fraud. Financial transactions are a key feature of such businesses. From a range of regular events such as hacked accounts from hackers and web criminals as well as chargeback frauds, BTC provides a key opportunity for increased privacy and security.
Fraud not only poses a threat to a business or an organization due to the financial losses it incurs, but also because it greatly damages the investors’ and clients’ confidence as they are forced to think that their credentials are not safe and secure.
The real question therefore is; how does Bitcoin fight this issue? First off, with bitcoins, there are no allowable chargebacks; all the transactions are confirmed and final. There are no reversed charges at all.
Secondly, the transactions in Bitcoin transactions are highly secured via encryption. It is extremely difficult, almost equivalent to impossible to unveil the identities of the parties involved in the transaction. Also, fake transactions cannot be made in bitcoin transactions.
3. Increasing Possible International Clients
Accepting and making payments for the business’s transactions can generate a large amount of unexplored leads, similar to how the introduction and adaptation of card payments and e-wallets can widen a business’s client base. For a lot of reasons, both explicit and implicit ones, businesses can use bitcoins for their transactions in the international market.
These businesses would also look for, and prefer other businesses who deal in the same form of currency. According to a lot of reasons, as some of them discussed above, it makes absolute sense to use bitcoins as a payment method for both, local as well as international clients, given there are benefits linked with it such as, improved security and cost-efficiency.
Another major advantage for using BTC as a payment method for business transactions is that as compared to other international wire transfers which take a few days, payments in bitcoin generally take from minutes to a few hours. This period depends upon the Miner’s fee – if its higher, the payment will be faster.
4. Brand Awareness & The Media
Bitcoins and other cryptocurrencies produce publicity more than any other instrument or currency. The mainstream and other press discuss BTC, given it is still relatively newer and mysterious. Also, people are still greatly confused or unaware about it generally, and also its potential.
When they are dealing with bitcoins, the investors and traders generally have an extra marketing point to establish, and they can certainly improve their brand awareness by positioning their business and organizations as relatively innovative ones and farsighted in the industry.
This serves as a great source of advertising, and only the acceptance and use of bitcoin has a great potential of advertising your brand.
A Last Word
The article above demonstrates only some of the ways in which your business can be improved and boosted by using Bitcoin. There are also platforms such as Bitcoin Circuit trading, which allows the investor to learn more about cryptocurrency decisions and how to improve them, in order to further enhance your business finances.
It is also suggested to investors to go through the internet, and do their research for integrating cryptocurrency with their business in order to make well-informed decisions, and grow their businesses consequently.