Cryptocurrency is very appealing for a lot of people, since it can be a great investment. But the question is, if you have a business, it is a good idea to accept cryptocurrency for it? As a business owner, you will most likely see things differently. Which is great, because it gives you a lot more specifics, while also making the process more exciting and enjoyable.
Why should you accept cryptocurrency?
Bitcoin, Dogecoin, Altcoin, Ethereum are widely used for all kinds of transactions online. Offering people an option to buy items with popular cryptocurrency can actually become an advantage for your business. You just have to implement everything correctly, and you will be very happy with the results every time.
On top of that, you have global accessibility, you can have people from anywhere in the world accessing the products they want, and you can get paid right away. Cryptocurrency also comes with low transaction fees. This is all decentralized, so being able to keep all those costs very affordable is like a dream come true in many cases.
Then there’s also the fact that you can prevent fraud. You can avoid chargebacks or anything similar to that. Cyber attacks on companies tend to be more and more advanced nowadays. Which is what makes cryptocurrency such a great option, since you get to maintain anonymity, while still being able to complete transactions the way you want.
You get to have monetary diversification for your business, which is actually a very good thing. It allows you to show that you are helping businesses and everything is working as expected. Yes, some adjustments are needed, but the potential is indeed great.
Are there any downsides?
The main challenge when it comes to using cryptocurrency for business is that prices fluctuate quite a lot. Sure, you can buy an item for $50 worth of currency, but tomorrow the crypto might only be worth $30. While cryptocurrency is great as an investment, the fact that it has a lot of pricing fluctuations doesn’t make it a great option for businesses. In fact, it is the reason why Valve, Amazon and many other retailers are not currently accepting crypto payments.
Also, now, there is little to no regulation. While that might sound great for users in general, it can be really challenging for companies. You don’t have any proper rules and an authority to manage everything. So, if there are any issues or any problems like that, you are on your own. Also, the wallet address can’t be recovered if you lose it, and the transactions are all public.
As you can see, small businesses encounter pros and cons when it comes to cryptocurrency. Sure, on one hand it can be a great way to have that monetary diversification, it can also be a great hedge against inflation. But on the other hand, cryptocurrency is also volatile and it can have security concerns. It’s important to weigh all these things in, and then you can make the right choice based on your requirements!