Cryptocurrency has been around for a long time now, but interest has spiked rapidly in the past year as investors and businesses alike begin to realize the true value of digital currencies.
There is also a growing appeal for multi-option payments to both retail businesses and eCommerce sites, providing customers with greater choice. Given the recent surge in popularity (over 100 million people globally now own cryptocurrency), you might be wondering whether it would be beneficial to accept Crypto in your business.
As with most new technologies or financial tools, there are pros and cons to consider. Check out the points below for a brief introduction to accepting Crypto as a business.
Pro: Decentralization
Conventional currencies can be controlled by governments, meaning central banks can use monetary policies to print more supply or take it away at will. Crypto, on the other hand, is decentralized. Online broker easyMarkets states that less affected by government economic policies because it is not directly controlled by national authorities. This means transactions take place directly between two parties, without the need for an intermediary like a bank.
Pro: Fast, Cheap and Secure Transactions
As well as the aforementioned versatility of customer payment options, one of the primary advantages for your business and its customers is the transaction method itself. While many banking and financial services (PayPal, for example) will add their own fee onto transaction requests, the same does not apply to cryptocurrency.
Large transactions and even international payments can take place incredibly cheaply, saving money for both yourself and your customers. There are also no fees for account maintenance, deposits, or overdrafts.
As well as being cheap, Crypto exchanges, whether paying for goods or moving coins via one of the Best Cryptocurrency Exchanges out there, can happen almost instantly, whereas with traditional currencies (sometimes referred to as fiat currencies), processing transactions can take hours or even days. And due to Blockchain tracking, the risk of fraudulent payments is also reduced.
Con: Volatility
By accepting it as a payment method, your business becomes a holder of Cryptocurrency. As with any other currency, the value of a single coin/token can change over time. The major difference is the current volatility in the value of these digital currencies – daily fluctuations of 30% or more are certainly not unheard of, and it’s possible that the payments you accept could quickly drop in value. On the other hand, this could also be looked at as a positive. As demand rises, and the supply of most coins remains constant, it’s equally possible that your business could profit from accepting Crypto.
Con: Potential Lack of Demand
Even with Crypto being adopted by millions of people, there is no guarantee that these users will opt to make payments in digital currency. So, if you do choose to integrate it into your business, Crypto may still only comprise a small fraction of your revenue.
Choosing to incorporate Cryptocurrency may depend on the type of business you’re running and your prospective customers. If you think your target market will welcome the opportunity to pay digitally, then perhaps it’s something to consider, but make sure to do your research beforehand to help you make an informed decision.
