It would be hard to not agree that cryptocurrencies have affected the financial world in the past decade or so. One of the biggest aspects of this financial world is the running and operations of businesses. The advent of cryptocurrencies has both been promising and controversial in the adoption of the mainstream economy, even in businesses. There was a significant amount of doubt associated with the trading of cryptos on the large scale as companies and different countries were fearing the ban of cryptos by the government. People do have strong opinions on this ecosystem. No matter how much controversy surrounds them, the rise of cryptos does not seem to stop.
These days cryptos have also made their way into the business models of several companies. Even though they are primarily used as investment opportunities by most people, for example, people will buy a certain amount of Ethereum by converting ETH to INR and wait for that value to grow, these days cryptos are also used to buy thousands of products and services online. The versatility of cryptocurrencies has also reached a point where booking hotels or playing poker can be facilitated with them.
The advantages of using cryptocurrencies in business
Not only do transactions in cryptocurrencies ensure transparency and anonymity, but they also facilitate hassle-free payments globally.
- They provide the businesses an opportunity to access new demographics – When businesses operate solely on the cash model, they are at a disadvantage since they are extremely limited to a certain number of people. Online modes of payments have now been adopted by most businesses and the acceptance of cryptos is just the next logical step. Allowing the customers to pay in cryptos would lead the businesses to new sets of customers.
- Adoption by financial institutions – Several institutions like banks and companies are now on board with using cryptocurrencies – especially ripple. XRP is used for many payments all across the globe due to the benefits the network offers. Check the XRP price in INR and make the transactions with very low transfer fees and at a fast speed. If banks and other major financial institutions are adopting the use of cryptos, it is natural for it to be picked up by other companies as well.
- Acceptance in different countries – The skepticism around cryptocurrencies was even at a much higher level wherein countries and governments were debating the ban of cryptos. The biggest threat to trading in cryptocurrencies was the ban from government bodies. El Salvador was the pioneer in accepting Bitcoin legally, since then several countries have expressed their acceptance of cryptos and have not outright banned it. Even in India, the trading of crypto is now officially legal with a few regulations around it.
- Ease of purchase – Buying cryptos is now super easy. Anyone with access to the internet can purchase, hold, and trade cryptocurrencies. There are multiple cryptocurrency exchange platforms, each better than the other, that provide millions of users all over the world a unified space to buy and sell these assets. This ease of purchase has been one of the major contributing factors to the rise of cryptos in business. Using credit cards, debit cards, PayPal, and other methods one can transfer money into their online wallets and purchase the desired cryptos.
The businesses that have already adopted cryptos
The rise climb has already begun. There are several businesses, even big ones, that have shown their explicit trust in cryptocurrencies and have backed them up.
- Tesla – With a whopping amount of 1.5 billion dollars that Tesla has invested in bitcoin, the faith in this particular crypto has only increased among the masses. Tesla has also announced the institutional adoption of BTC as customers can now use the coin to buy vehicles.
- PayPal – For even more enhanced ease in payments across the globe, PayPal has jumped on board the crypto train. They allow their users to buy and make transactions using cryptos like BTC, ETH, LTC, etc.
- Visa and Mastercard – Two big platforms and their endorsement of cryptos have been a big boost to sales and trading. These companies are devising their regulatory platforms and making them more accommodating.
Businesses all over the globe have already begun the use of cryptocurrencies in different capacities. This is important for global financial unity as cryptos help businesses cut transfer rates and make lightning-fast transactions. With more businesses jumping on board, the higher the values are predicted to be.