Since the first release of cryptocurrency in 2008, this digital currency has made a great impact on the digital economy. Though it is an oddity for some people who are new to cryptocurrency, this development marked the beginning of more advanced technology in the years to come.
Cryptocurrency is now a widely accepted around the globe. Various businesses use this virtual currency as an alternative to traditional money. Hence, the existence of cryptocurrency opened a lot of opportunities to businesses and in e-commerce.
More on Cryptocurrency
Have you heard about Bitcoin or Ethereum?
If not, these two are the most popular cryptocurrency in the globe. You’ll see bitcoin press release service on social networking sites and online sources. Moreover, Bitcoin is the talk of people who love using cryptocurrency.
So, what is a cryptocurrency?
In simple terms, a cryptocurrency is a virtual currency utilized in digital exchange. This type of currency uses cryptography which is a method of securing digital transactions and communications between third parties.
Cryptocurrency offers security and protection to users. In this digital age, most transactions such as banking, shopping and sending money use the internet. The internet is not a 100 percent secured place. You are prone to cybercrimes such as identity theft, hacking, and scams.
Using cryptocurrency protects you from hackers and scams. It ensures that your account is 100 percent safe from prime threats on the internet.
How does it Affect Small Businesses?
Cryptocurrencies offer both advantages and disadvantages to small businesses. Here is the list of pros and cons of this virtual currency.
Pros
- Customer Accessibility- This technology promotes improved customer accessibility. Using cryptocurrency as a payment option will help to increase your audiences and buyers. Moreover, customers all around the globe can reach your business. Hence, it gives small businesses an opportunity to grow through a global clientele.
- No Fees– Digital transactions from credit card to banks require a middleman who manages the transaction. A processing fee is charged because of a third party presence. In cryptocurrency, there’s no need for a third party. You can do transactions and avoid the extra fees which are a great advantage for a small business.
- Fast Transactions– Cryptocurrency transactions are lightning fast compared to credit card payments. When you use a credit card to do transactions, the payment process usually takes days to complete. On the other hand, cryptocurrencies transaction processes only in a matter of minutes.
Cons
- Unpredictability– Cryptocurrencies are highly volatile. You’ll never know when it crashes. And, if it does, you’ll have to wait for the conversion until the price levels out. It is a big problem if the invoice is on deferred payment.
- Possibilities of Government Regulations- Today, there are no laws regulating cryptocurrencies. However, the government is finding a way how to treat this growing virtual currency. And, once the government puts up laws accepting cryptocurrency as payment, expect the taxes involved in every transaction.
Indeed, cryptocurrencies have a huge impact on small businesses.
Find out more on how to start using cryptocurrency on business! Look up for more details and digital economy updates here at Cascade Business News.