Business changes, this is true in this aspect of life than any other. Any large change in society has business behind it. Nothing is achieved without business support. Even public and not-for-profit measures use technologies and procedures developed in the commercial world.
Let’s look at payment methods: we have seen numerous innovations in recent years, such as contactless payment and smart devices, such as phones and watches, to make payments.
For this reason, we would argue that every business should consider accepting cryptocurrency payments as we move into 2024.
Ease of Use
Cryptocurrencies are easier than ever to use for the average person. In the early days, getting involved in cryptocurrency seemed difficult, obscure, and even dangerous. Initially, the cryptocurrency had a link to illegal activity on the dark web. Sites such as the notorious Silk Road website had a reputation for criminality.
While sites such as this still exist, they do not command the share of cryptocurrency use anymore. You don’t even need to mine for coins, another difficulty that made cryptocurrency use an area reserved for tech geeks in the early days. Anyone can buy Bitcoin instantly and spend it in almost any kind of business, online or in person. As a business, you can accept certain cryptocurrencies, such as Bitcoin, through the same transaction processing company that your credit card sales work with.
Security
By its very nature, cryptocurrency is secure. All transactions made with cryptocurrency benefit from a unique form of encryption where users ‘mine’ the currency by solving complex mathematical problems. These users are then rewarded with new cryptocurrency coins. The system is self-sufficient, and notoriously difficult to hack, giving those taking payments significant peace of mind.
The blockchain is, in fact, immutable. This means that it cannot be changed. When a block or hash is encrypted the entire blockchain sees it. So, if it is changed, it needs to go through the process of verifying it which couldn’t happen. It has already happened and been registered.
Since the blockchain isn’t on any single server, there is very little room for it to be hacked even aside from the fact that it is encrypted. The blockchain resides on millions of computers so a hacker cannot go into one and change the block. They would have to hack into the other millions and change it or it won’t work. This is a logistical impossibility.
International Trade
Anyone who has dealt with international financial transactions will know that international bank transfers can be prohibitively expensive, especially for smaller transactions. Cryptocurrencies are not controlled by any central bank, and they are not tied to any geographical location. Equality for all allows customers and companies the advantage of the transaction cost is the same.
Since a Bitcoin in Country A is the same as it is in Country B, there is no need to convert it at all. It is completely borderless. This also allows for faster transactions since there is no point in which it has to be changed to another currency. It can take a matter of minutes to make a transaction when using Bitcoin for international purchases.
Attract New Customers
We can use the acceptance of cryptocurrency to attract a new range of customers. It can be attractive to some, who are typically early adopters of new technologies. Something new can be an interesting talking point on social media. If you are one of the first in your industry to do this, then it can be a talking point. If you have an e-commerce store, then why not use it to get new customers paying in cryptocurrency.
There are many people who would rather not deal with banks whenever possible. Those people still want a way to pay for things without using cash and cryptocurrency is the ideal way to allow them to do so. If you don’t accept this as payment then those people will find the vendor who will.
Tax Purposes
Taking cryptocurrency can be beneficial when it comes to tax purposes. In many tax jurisdictions, cryptocurrency is not recognized as a currency. This can cause some potential issues, such as dealing with disputed transactions. But can be beneficial in other ways. It leaves any cryptocurrency balance held to be a possession rather than a profit. Many tax collection authorities are catching up and changing the rules on accounting for crypto profits, but it remains a gray area.
It is an investment
One of the best reasons to accept cryptocurrency as payment is that they can increase in value which has you making even more money after the initial purchase. And it can happen very quickly. Even if you decide to convert to fiat after the purchase, it can gain in value in those few hours while it processes. It may be a small change for each transaction but it adds up to be quite a bit when you have thousands of transactions.
And, if you decide to hold the coins while the value is on the increase as a company policy then the gains can be staggering. Consider that Bitcoin has gone up in value from around $10,000 to over $40,000 in less than a year at the time of this writing. It makes sense to at least consider holding some Bitcoin as a company.
Conclusion
The financial landscape is changing very quickly. And history has shown us that businesses that are slow to adapt to the changes happening right now are generally not going to last long.
When a trend is happening that can affect your bottom line it is wise to jump on it early and not when it is too late. Make the change as soon as you can to start accepting Bitcoin or other cryptocurrencies and start reaping all of the benefits right away.
*This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.