Bitcoin (BTC) is the world’s most popular digital currency, and the hype around this new asset doesn’t seem to be dying down anytime soon. Since it was first created in 2009, the Bitcoin network has been used to send trillions of dollars around the world, with secure transactions and very low fees. The potential use case for bitcoin and cryptocurrency as a global currency has helped create demand and drive up the price, leading to further speculative investment. As a result, BTC price has climbed significantly over the years, resulting in returns of more than 1000% for early investors.
As the popularity of Bitcoin has grown as both a way to transfer money and an investment, it’s seen greater interest from businesses too. Many companies now accept Bitcoin as a form of payment, and some even use it as an investment too. In this article, we’ll discuss the ways businesses can leverage Bitcoin and other cryptocurrencies for growth.
Accepting Cryptocurrency Payments
The simplest and most obvious way for businesses to benefit from cryptocurrency is by accepting it as a form of payment. Increasing the number of ways consumers can pay for goods and services is a great way to reduce friction during the buying process, making it easier to convert leads into sales and improving revenue. Instead of simply limiting users to fiat payments, giving them the option between traditional and crypto will potentially secure more businesses.
Some customers may even be more likely to purchase from a business simply because it accepts bitcoin and cryptocurrency. People who are heavily involved in the crypto space are good at promoting businesses and services that are friendly to crypto, helping to give brands more exposure when they accept it as a form of payment.
Most cryptocurrencies have significantly lower transaction fees compared to traditional payment processing services. For example, credit card processing fees can be up to 3.5% of the charge, resulting in significant costs. On the other hand, crypto fees are rarely more than 1%, with huge transactions often made at less than $1.
Improving Transparency and Consumer Trust
One of the most important aspects of Bitcoin is its public blockchain which allows every transaction to be traced and viewed by anyone. Financial transparency can be extremely beneficial in helping to reduce corruption and improve financial knowledge. Businesses can audit more effectively when all of their transactions are recorded on a public blockchain, improving accounting practices and ensuring irregularities are caught early.
In addition, the blockchain can also be used to verify and improve transparency in supply chain management. When buying high-value items, consumers need to have trust in the product and know that they’re getting exactly what they pay for. Purchasing online requires a higher level of trust, but the transparency offered by public blockchains can reveal every stage of a product journey from factory to consumer.
Embracing these digital assets can help businesses stay ahead of the curve, transforming potential hurdles into strategic advantages. While some might view cryptocurrencies as a Finance Phantom—an elusive and enigmatic force—those who adapt and integrate these technologies effectively can unlock new revenue streams, streamline transactions, and gain a competitive edge in the evolving market landscape.
Global, Future-Proof Business
Cryptocurrency payments are borderless, with users from all over the world able to send and receive coins like Bitcoin and Cryptocurrency without any issues. The conversion process is carried out by the consumer, so businesses can accept overseas crypto payments without having to worry about paying extra fees for bank conversions.
One of the downsides of accepting crypto as a payment is that prices can fluctuate. However, the price of Bitcoin has risen dramatically over the years. Simply holding onto the coins might be a worthwhile investment if this continues in the future, and making use of cryptocurrency may help provide a competitive advantage for businesses.
