Business Performance Could Improve with Bitcoin
Alongside Brexit, Bitcoin was one of the most trending news topics in 2017. The value of this previously unobtrusive phenomenon has made it become well-known. It is surprising that it took nearly a decade for something which was launched in 2009 to gain so much acknowledgement, and its quick growth in value has helped it to move forward. Before we go ahead, I would like to talk about cryptocurrency, in general, before we discuss if it can boost your business performance.
What exactly is Cryptocurrency?
It’s a digital currency that utilizes encryption to control its uses and to develop its product. Cryptocurrency makes use of blockchain technology to keep records of each transaction, which prevents the same person from spending the same coin. However, it’s also a currency like the dollar, pound, or euro but the difference is that it is simply not regulated by any financial institution, bank, financial authority or government.
Bitcoin is the main cryptocurrency brand. It works by using point-to-point exchanges that connect buyers with sellers who set their payment methods and prices. If you want to purchase Bitcoin, you must first of all have a digital wallet. Then you will have to find a recommended trading platform, like Coinbase, before selecting the right Bitcoin Operator based on the type of offers that they have.
Moreover, the primary objective was to develop a method of payment that would not have to be in accordance with any government regulation or financial authorization, which would allow a number of benefits that the fiat currency could simply not offer. This was attractive to many, so the number of wallet users increased exponentially.
Are business owners using bitcoin to boost there business performance?
More and more companies have agreed to get onboard by using mainly Bitcoin, and also other cryptocurrency. For instance, giants such as Paypal, Microsoft, and Expedia have already accepted it as well as many other smaller outlets, especially those whose main clients are the millennials, which are the ideal demographic for adopting this new currency. Bitcoin can as well be exchanged for when buying goods from Amazon and Nike.
Blockchain technology has also been used by catering companies to improve their revenue management and internal processes. The industrial giant TUI Group is one of those companies that are known to be running an underground experiment on this.
So now, let’s talk about the advantages of cryptocurrencies.
Advantages of Cryptocurrencies
Below are some of the benefits your business can achieve by using cryptocurrencies.
More options for your clients.
We all know the saying “buyer is king” and it has never been as true as it is today when the rate at which customers ask for immediacy and personalization are at a very high level. Therefore, the more payment options you can offer, the better for both of you. And, with so many new merchants putting up the sign “Bitcoin Accepted Here”, it’s definitely a trend which you should pay attention to if you want to boost your business performance.
For most companies, the fees charged by their banks are a huge burden to them and they cannot ignore that, especially when they can be charged 5% of their total transactions. However, one of the many benefits of cryptocurrencies is that this figure is usually much lower, and sometimes charges do not exist at all. This is because there are no payment intermediaries.
Another nightmare for many companies is the time it takes to go through transactions. Even though we live in the age of 24/7, many financial institutions and banks continue to stick to a number of working days for making payments. However, the blockchain technology which is behind the cryptocurrency implies that these payments can be done in a matter of minutes which will likely boost your business performance .
Disadvantages of Cryptocurrency
Having known all the benefits associated with using cryptocurrencies, there are still some disadvantages that you need to know. These include:
Fluctuation in value
Cryptocurrency prices can fall and rise at any time like what is happening now, so there is always a risk that you can get caught into when the price drops. Notably, Bitcoin’s price has in a single day dropped more than 40%.
Recently, there are certain regulations guilding cryptocurrencies. But as it gets more and more popular, several governments think it will have to be regulated. Until we are certain about what these regulations might be, it is not possible to predict how this will affect businesses.
Having seen the advantages and disadvantages of cryptocurrency, it is imperative to know that Bitcoin is waxing stronger. So many financial experts have predicted that Bitcoin will soon be adopted by so many governments as a means of payment. Many people are already of the view that Bitcoin will boost so many businesses mostly in terms of payment.