Today, the blockchain technology (blockchain is an analogue of the public book of income-bearing operations, the main idea is that users can make payments without any intermediaries on the condition of irreversibility of transactions) are becoming more popular and widely used. When organizing his business, an entrepreneur should consider the importance of adopting cryptocurrency as one of the payment methods. Making such a decision is necessary based on the needs of the business.

The benefits of using cryptocurrencies in business

  1. Availability. Thanks to the decentralization of the currency, the need to verify each transaction is eliminated. The adoption of cryptocurrencies helps businesses save up to 5% on transactions.
  2. Fast transaction processing. Centralized banking systems tend to slow down payment processes. Quick settlement is crucial when doing business.
  3. International currency. This method allows you to easily conduct transactions in different parts of the world without intermediaries. Using cryptocurrency will be the most convenient way of settlement for customers with online purchases. It will also be nice to avoid costly exchange conversions and fees for foreign transactions.
  4. Partnerships. The study shows that sellers who accept cryptocurrencies such as Bitcoin have a wider customer base compared to those who do not.

By the way, the most popular cryptocurrency among business owners is precisely Bitcoin (BTC) due to its principles of working on the blockchain.

Disadvantages of using crypto in business

  • Volatility (price). The monthly rate of some cryptocurrencies can reach 60%. For some businesses this can be a serious problem.
  • Insecure cryptocurrency services. They do not cover losses in case of hacking, as traditional banks do. Therefore, some enterprises lose their income from cryptocurrency. Also, wallet keys can be stolen, which makes it impossible to return funds. Since cryptocurrency promotes anonymity, this can lead to illegal transactions.
  • Requires a deep understanding of all processes. Cryptocurrencies require an understanding of the mechanism of blockchain technology and the use of digital wallets.

Business prospects

The blockchain is designed to eliminate certain types of correspondent relations, clearing companies and intermediaries, contract executors, outdated models of payment systems and brokers. This technology will contribute to the transformation of many sectors of the economy, and not just its financial sector.

TOP promising areas for implementing blockchain technologies:

  • Healthcare
  • Insurance
  • Retail
  • The property
  • Micropayments
  • Bank operations
  • Logistics
  • Jurisprudence
  • Medicine
  • Property Registration
  • Music industry

New projects on the blockchain will be based on its main advantages - openness, security, security. Therefore, the blockchain will be a good help for any services where users could worry about possible fraud or data safety.

Ways to use cryptocurrency technologies in business

How to determine if a business needs cryptocurrency?

Finance

  • the desire to save on costs: in the case of payments in crypto, you do not need to pay a commission to the bank - only to the processing itself. As a result, costs for merchants can be 70% lower compared to fiat payments.
  • no loss of money on chargebacks: payments in crypto have a great advantage for the seller, because chargebacks on them are impossible. The processing company cannot take the funds and return them to the buyer. If a mistake really occurred on the seller’s side (the goods were lost, the wrong model was sent, etc.), then the parties must agree. After that, the buyer can send the seller an invoice with a blockchain address for return.

Lecture hall

  • orders from different countries: a buyer from any country can send you cryptocurrency through processing, and the speed and commission of the network are the same for everyone. A cryptocurrency wallet is sufficient.
  • attracting new potential customers: crypto users are actively looking for places where you can pay in digital currency. Other things being equal, they will choose the company that accepts crypto. Moreover, the more different coins the merchant supports, the higher the chance to attract a buyer.

Competition

  • getting a marketing advantage: by connecting BTC, you can become the first company in the crypto-receiving segment. If cryptocurrency is not yet widespread in the current business, the media will readily illuminate this innovation, both niche and crypto.

Business application

Cryptocurrency is most often used as payments from individuals. Such payment transactions are easily reflected in cash accounting and they do not require additional costs. This does not directly benefit the business, but it is an excellent way to get additional PR: the ability to pay for services using bitcoins is a way to express yourself in the media and news publications.

Business owners can attract additional financing through an ICO, during which the company issues its own tokens and sells them to investors. However, it is worth considering the fact that the tokens issued by the company do not constitute a cash, but are exchanged for any services.

The main use of crypto is payments between legal entities. Companies can increase profitability by increasing the speed of transactions, since on average cryptocurrency payments take about 10-15 minutes and can be made at any time, regardless of banking days. This means that the funds received can be put into circulation faster, thereby increasing the overall cash turnover ratio in the company.

Conclusion

Most companies, both small and large, can benefit from the inclusion of cryptocurrency as a payment method. This will help increase business revenue. Although cryptocurrency has some disadvantages, it can make any business more competitive.