You’ve heard a lot about cryptocurrency lately. There’s a good reason for that. Despite the somewhat volatile nature of their overall values, cryptocurrencies remain a growth market. As techno celebrities like Elon Musk popularize this decentralized form of money, we will only see the acceptance of crypto spread across industries.
You may think that this doesn’t mean much to your business model. Especially if you’re a small business, it can be hard to view the rising tide of digital payment options as something that will directly affect you in the near future. However, this is not the case. Cryptocurrency can mean a lot to your business model, from its soaring popularity to its applications and your revenue streams.
All kinds of blockchain-based technologies are taking off. From the digital trend in non-fungible tokens to the use of blockchain for the storage and communication of electronic health records, we are seeing a revolution in the cryptocurrency market. The world is taking notice. Even companies like MasterCard have adopted cryptocurrency into their processes.
But you may be asking, isn’t crypto just a bubble? A trend that might go away anytime soon?
The answer to these questions is quite simply no. Cryptocurrency is likely here to stay. With the value it adds in terms of everything from an easy transfer of funds across borders to its effective security framework, cryptocurrency will ultimately be the future of trade in many if not all sectors of the world.
In fact, more than 15,000 companies worldwide support Bitcoin, which is of course the frontrunner in the crypto race. Bitcoin, like most other cryptocurrencies, uses blockchain technology to seamlessly and immutably store transaction data in a highly secure and decentralized node. The relationship between blockchain and cryptocurrency enables the user to back up their financial data without going through a payment service that will charge a fee. As a result, the payment is often cheaper, more private, and highly secure.
All the inherent benefits of such a system make for a widely popular means of conducting business. And for you, cryptocurrency can mean all kinds of changes.
Understanding what exactly cryptocurrency means for your business model can be much simpler than it might at first seem. While you may question the regulations and tax obligations that come with using cryptocurrency, it’s not much different from any other asset. Meanwhile, the range of benefits might just help you.
Here are the most important ways cryptocurrency can affect your business:
First, cryptocurrency means opportunity. As you’ve likely seen, the rapid growth in value from any blockchain-based coin can result in a windfall virtually overnight. By investing in them, or even creating them yourself, you have the potential to boost your values beyond your previous expectations.
Then, there’s the global marketplace in which we live. For any business that wants to scale and expand outside of their country, cryptocurrency offers the means for customers to make easy and cheaper payments. This is all because of the decentralized nature of cryptocurrency and the fact that it doesn’t need to pass through a payment processor to be accepted. Whether you’re in Germany or New Zealand, cryptocurrency can be used all the same.
But how did taxes come into all of this? For small businesses, there are already so many things to know about taxes, ranging from self-employment to property. Fortunately, cryptocurrencies are defined in most nations as assets rather than currency and are treated as such. They can appreciate and depreciate in value, requiring thorough record-keeping. But blockchain makes that easy.
Considering the money to be made in markets like CBD, where regulations differ and traditional banks won’t always accept transactions, the potential of cryptocurrencies in business is vast. The only question left is how to take advantage of the crypto boom.
For any enterprising business looking to innovate with crypto, there are a few things you should know before getting started. Here are some tips for succeeding with cryptocurrency integration:
- Explore the range of crypto wallets and payment services available to businesses.
- Invest when crypto is at lows, cash out when it’s high, but understand selling comes with capital gains tax.
- Partner with a crypto company or blockchain product.
- Offer crypto loyalty rewards programs or crypto bonuses for employees.
- Keep thorough records of all crypto values when bought or sold.
As the nature of cryptocurrency regulations and business practices change, many stand to gain by accepting these currencies now. At the same time, they can offer incentives to customers and employees at low costs.
For any business, exploring cryptocurrency now can be a great way to secure your ability to scale in the increasingly digital marketplace. Expand your potential and understand the implications. In turn, you can build investment and global trade opportunities.