Cryptocurrency for Business- The Ultimate Enterprise Guide
Published October 11, 2021 by SYNARION IT
Are you thinking to use cryptocurrency for your business?
Cryptocurrency is not a buzzword these days. Cryptocurrency development companies helped a lot to bring it into the public domain. Every government has either regularized it or planning to do the same at the earliest. It is capturing the market at a fast pace. New milliners having a higher market share of particular crypto-currency are announced every day.
Are you thinking to use cryptocurrency for your business? Then this blog is for you. I am going to share some basic knowledge that you must know before you proceed to either your proceed to start using cryptocurrency for the purchase of items for your business or want to facilitate your consumers/partners to use cryptocurrency for sale or purchase in your business.
Cryptocurrencies are systems that allow for secure payments online which are denominated in terms of virtual “tokens,” which are represented by ledger entries internal to the system. “Crypto” refers to the various encryption algorithms and cryptographic techniques that safeguard these entries, such as elliptical curve encryption, public-private key pairs, and hashing functions.
Therefore a cryptocurrency is a form of digital asset based on a network that is distributed across a large number of computers. It is a digital or virtual currency that is secured by cryptography. It’s a peer-to-peer system that can enable anyone anywhere to send and receive payments. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.
Blockchain technology is the “engine” that powers cryptocurrency networks and it is rapidly gaining recognition among businesses. It is a cryptographically secured ledger that tracks transactions on a decentralized network. Decentralized networks, like those of Bitcoin, Ethereum, Cardano, etc., are a collection of computers that are self-managed by a consensus mechanism — a set of rules that dictate how data is recorded, shared, and synchronized throughout the network.
Top 10 Cryptocurrency in the world & their market cap in the year 2021 is as follows
|Cryptocurrency||Market Capitalization ($ Billion)|
|Binance Coin (BNB)||70|
|USD Coin (USDC)||33|
Considering Cryptocurrency for business
According to stats released on the basis of usage of cryptocurrency between late 2020 and early 2021, more than 2,300 US businesses accept bitcoin and that doesn’t include bitcoin ATMs. An increasing number of companies worldwide are using bitcoin and other digital assets for a host of investment, operational, and transactional purposes. Considering Cryptocurrency for business
The use of crypto for conducting business presents a host of opportunities and challenges. As with any frontier, there are both unknown dangers and strong incentives. That’s why companies venturing to use crypto in their businesses should have two things:
- A clear understanding of why they are undertaking that action and
- A list of the many questions they should consider.
What can crypto do for your business?
To support your company’s thinking about crypto, here are some of the foundations behind why some companies are currently using crypto
- Crypto may provide access to new demographic groups. Users often represent a more cutting-edge clientele that values transparency in their transactions. One recent study found that up to 40% of customers who pay with crypto are new customers of the company, and their purchase amounts are twice those of credit card users.
- Introducing crypto now may help spur internal awareness in your company about this new technology. It also may help position the company in this important emerging space for a future that could include central bank digital currencies.
- Crypto could enable access to new capital and liquidity pools through traditional investments that have been tokenized, as well as to new asset classes.
- Crypto furnishes certain options that are simply not available with paper-based currency. For example, programmable money can enable real-time and accurate revenue-sharing while enhancing transparency to facilitate back-office reconciliation.
- More companies are finding that important clients and vendors want to engage by using crypto. Consequently, your business may need to be positioned to receive and disburse crypto to assure smooth exchanges with key stakeholders.
Crypto provides a new avenue for enhancing a host of more traditional Treasury activities, such as:
- Enabling simple, real-time, and secure money transfers
- Helping strengthen control over the capital of the enterprise
- Managing the risks and opportunities of engaging in digital investments
Crypto may serve as an effective alternative or balancing asset to cash, which may depreciate over time due to inflation. Crypto is an investable asset, and some, such as bitcoin, have performed exceedingly well over the past five years. There are, of course, clear volatility risks that need to be thoughtfully considered.
Direct benefits of using cryptocurrency in business
When you run a small business or restaurant and you want to keep your costs low, provide great customer service, and always bring in new clients then the great thing is that you’re the perfect candidate in the new global cryptocurrency economy, and it’s now very easy to get involved!
Some of the benefits of this new approach to payment transactions are –
a) Lowering Expenses:
One of the primary goals of any business is to keep your costs low while still maintaining quality. The great thing about cryptocurrencies is that they can reduce your costs to accept customer payments. With Cryptocurrency, transaction fees are negligible, instant, and not reversible by the sender. This gives you the benefit of eliminating chargeback fraud. Also, funds are available immediately because there is no third party involved such as a payment processor or bank to wait for funds to settle and be sent to your account. You can see that the funds received and use them without waiting days or weeks.
b) Growth of Customer Base:
Being known as a business that accepts cryptocurrencies will attract new customers. Tech-savvy customers, Millenials, and people who want to be in control of their finances are using cryptocurrency more and more each year. This is a wide audience and a growing mainstream trend.
c) New Market for penetration:
You can get publicity and awareness for your business through merchant directories that list businesses that accept cryptocurrencies. If you operate a business that can provide services or ship internationally, you can also easily accept payments with full confidence that the transaction is complete and has settled accurately by accepting cryptocurrency. Business owners can benefit by participating in a community and becoming trusted and well-known for repeat customers.
d) Fraud reduction:
A payment made with cryptocurrency cannot be reversed after the fact. This is different from credit card payments, which can be reversed using chargebacks, a feature often exploited by fraudsters.
e) Instant payments:
Credit card payments can take days or even weeks to come through. Meanwhile, cryptocurrency offers instant transfers.
f) No barriers:
Cryptocurrency makes international trade more accessible by removing barriers and restrictions to trade, ultimately making it easier to accept payments in different currencies.
g) Attract new customers:
As cryptocurrency is still a fairly new method of payment, offering it as an option for your customers could help you bring in new business.
h) Get ahead of your competition:
By being an early adopter of cryptocurrency, you can gain a competitive advantage over your competition.
i) Offer added benefits to consumers: You too can be a pioneer in this growing community of businesses using cryptocurrency for business and help your customers enjoy the other benefits of using cryptocurrency. These include maintaining the privacy of your customers because there are no intermediaries or third parties for payments to track transactions. There are also no restrictions on payments because cryptocurrencies such as Cryptocurrency are an independent, peer-to-peer, and permissionless network that allows everyone to send or receive payments. It is also very easy to convert from a cryptocurrency to local currencies for your business accounting by using partners such as With-Coin Payments or local exchanges.
Cryptocurrency for Amazon Purchase: a real-life example
Amazon is probably one of the most anticipated retailers for Bitcoin adoption. While Amazon doesn’t accept Bitcoin directly, there are several services that allow you to buy Amazon gift cards with Bitcoin, or trade your Bitcoins in exchange for ordering your product for you. Most of these services will also give you a discount on your purchase. For your understanding, I am going to share a few of them with examples.
Purse.io: Purse.io is probably the most popular solution for buying on Amazon.com using Bitcoin. The site connects people who want to pay with Bitcoin on Amazon, with people who want to trade their Amazon gift cards for Bitcoin. Here’s how it works:
A shopper selects a product from Amazon+ the desired discount
- The shopper’s order is presented in the order book for earners to fulfill
- Once an earner fulfills the order, he or she receives the Bitcoins in exchange.
- Discounts start from 5% up to 33%. The lower the discount you request, the faster your order will be fulfilled.
Earners have different levels, with higher levels receiving access to orders with a lower discount request. Buyers can easily add items from Amazon.com using Purse’s Chrome extension as well.
Bitrefill: Bitrefill is a popular service that allows you to purchase gift cards or top-up prepaid mobiles with cryptocurrencies. It also accepts Lightning Network payments.
Through Bitrefill you can buy gift cards for Amazon.com, Amazon.UK, Amazon.ca, and more. There are certain buying limits, however, they can be increased by verifying your account.
- Fold: Fold is a website that allows you to buy different gift cards through Lightning Network payments. You can purchase Amazon.com gift cards on the site and get up to 20% back on your purchase as well. There are maximum limits on the value of each gift card purchased, which are subject to change.
- Moon: Moon is a browser extension that allows you to buy on Amazon.com instantly via Lightning Network payment or through your Coinbase account with Bitcoin, Litecoin, Ethereum, or Bitcoin Cash.
Last I just want to recommend to you that as cryptocurrency becomes more widely embraced, businesses should be keeping a close eye on how this technology develops and consider how it could be used to their advantage in an easier & faster way.
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