Whether at the head of a startup or an already established company, many business owners have realized how much they stand to gain by harvesting the power of crypto. Digital currency is all the rage nowadays, and after Bitcoin’s and Ethereum’s incredible rise, it seems like we are all just waiting for the next crypto to explode.
Of course, every business is different, so no one-size-fits-all solution could tell a business owner whether to invest in crypto right at the conception of their company. However, there are more than a few ways in which a company can profit from the inclusion of digital currency, with the seven main ones being:
- Instant global payments
- Unparalleled safety
- Low fees and charges
- Inflation protection
- The possibility of lower taxes
- A shot at anonymity
- Reaching a wider audience
1. Instant Worldwide Payments
The world has become one well-connected place, opening up horizons for business owners who want to achieve worldwide success. While it’s possible to sell a service or product to a person living in any part of the world, the problem can arise once they have to pay for it, and it’s all due to the unique currencies of different countries. Cryptocurrency solves that problem right off the bat.
By using Bitcoin or any other crypto, users can send and receive payments around the world, regardless of their country’s currency. All of these transactions are recorded through blockchain technology, so they are fast, transparent, and reliable. The only obstacle could be the sometimes lengthy processing times, as it can take up to five days for a payment to reach your account.
2. Secure Transactions
Despite what some might believe, cryptocurrency transactions are very secure. The entire concept is built around blockchain technology, which ensures there is no tampering with transactions. Cryptocurrency is also decentralized, so it’s nearly impossible for hackers to mess around with it, although that shouldn’t prevent you from being on high alert regarding online safety. If you’re looking to trade or invest in cryptocurrency, choosing the right platform is crucial. Many crypto brokers in the UK offer secure and regulated environments for buying, selling, and holding digital assets.
Furthermore, these digital currencies use cryptography to add another layer of protection. Cryptography is a way to protect important information through the use of codes, so only those for whom the information is intended can access it. This leaves business owners—and their users—with very little to worry about when it comes to payment safety and transaction issues.
3. Lower Transaction Fees
Buyers aren’t the only ones at the receiving end, as businesses also get to enjoy special perks, like lower transaction fees. Regardless of your line of work, you’ll still have to pay your vendors, suppliers, and employees. Most businesses will use traditional payment methods—like credit cards and direct bank transfers—when settling these transactions. And while they are still a solid and trustworthy payment option, traditional solutions are slowly being replaced by more modern options. The reason for that is the lower transaction fees, which are typical for cryptocurrency transactions.
That being said, while fees associated with crypto transactions are already low, it’s expected that they will be further reduced. Blockchain technology is constantly evolving, which brings better terms and conditions regarding transactions carried out through it. While reduced fees can benefit any business, they are especially important for startups that don’t have a huge budget to begin with.
4. Protection Against Inflation
Inflation is something that all currencies are prone to in some degree. While it’s possible to make predictions regarding the inflation rate and impact, it’s impossible to know for sure when it will spiral out of control. With inflation out of hand, the value of your business assets will decrease over time – which isn’t something you’ll have to worry about with cryptocurrency.
Due to its decentralized nature, there isn’t a bank or a regulatory body that can increase the supply and drive down the price of currency. Take Bitcoin as the perfect example – its supply is limited and known, as there will only ever be 21 million Bitcoins. After every four years, the amount of BTC that is mined is reduced by half, which is how Bitcoin manages to combat inflation and protect the investment of its users.
5. Possible Income Tax Benefits
The first thing that you should keep in mind is that crypto is taxed like stocks and other types of property, and it’s not possible to bypass paying taxes altogether. That being said, your business might be able to enjoy some income tax benefits, depending on your jurisdiction and the status of cryptocurrency in the country. Some businesses can deduct their crypto investments from their taxes if they are based in a country where digital currency is legal.
If you are not sure whether you’ll be able to enjoy such benefits, it’s best to consult a professional. Considering there’s a way for crypto to increase your company’s potential for growth, it’s worth looking into it.
6. The Perk of Anonymity
Not every business wants to have its financial dealings publicly displayed. As long as it’s legal, some companies prefer to add a layer of anonymity, which they can do by sticking to cryptocurrency transactions. These transactions are recorded in a public ledger via cryptocurrency addresses, making it impossible for anyone to know who’s behind those addresses. This will not only keep your transactions anonymous but also contribute to the security of your business.
Hackers will have a much harder time breaching into your company and stealing important information, giving you an upper hand in a world full of cyber threats. You should still do your part in keeping critical vulnerabilities at bay, which you can do by utilizing strong passwords and two-factor authentication.
7. Greater Business Exposure
Ultimately, people love to see businesses that accept and implement cutting-edge technology. There’s a growing number of people interested in trading and spending cryptocurrency, with terms like Bitcoin, Ethereum, and Dogecoin becoming mainstream. By using platforms like Moonpay, businesses can allow customers to buy Bitcoin easily and securely, expanding their reach to a tech-savvy audience. Embracing cryptocurrency transactions can attract this new demographic and enhance a company’s reputation for adopting cutting-edge technology.
Of course, you’ll also be able to benefit from the good word that’s likely to get out, as consumers always appreciate businesses that offer a long list of banking methods.
The Bottom Line
Investing in cryptocurrency might still seem like a forward-thinking action, but that might not be the case in the near future. The adoption of cryptocurrency transactions seems inevitable, so it’s a good idea to get ahead of the competition while you still can by focusing on crypto. Make an effort to better understand the digital currency ecosystem and you’ll soon be able to profit from it.
