Bitcoin – for those who are unfamiliar with the term, it is the most popular cryptocurrency being used today. Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
There are several small businesses that are embracing cryptocurrencies in their businesses. The main reason for these is that small businesses feel that by using the latest technology, they can stand out from other businesses.
If others are using cryptocurrencies, should you do so as well? It depends.
One of the advantages of cryptocurrencies is that they are decentralized, meaning that they don’t require a bank to verify each transaction. This eliminated credit and debit card fees for every transaction, which normally costs up to 2 to 5 percent per transaction.
Another reason is privacy. It is estimated that 17 percent of shopping cart abandonment is over payment security concerns. Another 18 percent is due to excessive security checks. With cryptocurrency transactions, there is no need to share personal info whenever a customer purchases since it relies on a send only protocol. This means that counterfeiting and identity theft are decreased due to the anonymity of the user.
Quick transaction speed is another advantage of cryptocurrency. The transactions occur in real-time because there aren’t multiple banks involved in the payment process.
Being an international currency, the export of goods and services overseas is less of a hassle. You don’t have to worry about expensive transaction fees, exchange rates, or even foreign currencies.
These are the different benefits of cryptocurrencies to businesses. Is cryptocurrency for you? It is up to you to decide.