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The Businesses’ Response to the Crypto Boom
The crypto boom has had a huge impact on entrepreneurship around the world. The simplicity and security of cryptocurrencies attract many people. Although Bitcoin is no longer valued at $20,000, cryptocurrencies have become firmly embedded in the global financial architecture.
After the explosive growth of Bitcoin and Ethereum popularity, many businesses realized that the future would be favorable to them if they would be able to change their business model. Apple Pay, PayPal, online shopping, and the gaming industry rushed looking for Python developers to develop for Ethereum, for instance. All of these companies have been able to successfully implement cryptocurrencies in their business model. So why is crypto so attractive?
The Mainstream Appeal of Digital Currency Adoption
Naturally, the first advantage of cryptocurrencies lies in its essence — it is a blockchain. Cryptocurrency itself is a product of blockchain technology — a kind of digital record database that is renowned for its security. At the same time, blockchain technology allows transactions between two counterparties to be carried out as quickly as possible and without third parties’ involvement. This is a cutting-edge technology with tremendous potential for development and any Python programmer is aware of it.
With blockchain technology, you can forget about credit card fraud and hacking bank accounts — this is impossible with cryptocurrency. BitFlyer provides quite intriguing data concerning the Europeans. According to the survey, about 66% of Europeans believe that cryptocurrency will be present in our lives for the next 10 years.
The second advantage of cryptocurrency is the absence of transfer tax. In the process of transferring non-cash funds, we need to pay a certain amount to the bank as a service fee. With cryptocurrency, there is no intermediary fee, which for small businesses is significant for cost-saving purposes.
The third advantage of digital currency is an easy international transaction. There is no need to follow any requirements from banks. Blockchain works the way that you can send money anywhere, with no restrictions.
Perhaps not the most obvious, but vastly important advantage is the creation of an alternative to standard payment systems. Competition is always a good thing. A cryptocurrency developer in a company’s staff can help many entrepreneurs to find the most cost-effective payment method.
Problems of Accepting Digital Currencies
For many small businesses, the main disadvantage of cryptocurrency may seem to be its excessive volatility. We have already observed both sharp rises and catastrophic falls in Bitcoin. Volatility is indeed a problem. Investments in a cryptocurrency payment system for small businesses can become unprofitable shortly.
It is worth remembering that such volatility is not a sign of the fraudulent nature of the cryptocurrency, as many might think. Digital currency is quite an unregulated sphere. It means that governments have a limited influence on the cryptocurrency market development. In one respect, a lack of regulation helps the cryptocurrency market to expand rapidly. Per contra, the risks are bigger.
Nowadays, many financial institutions and national governments continue to work hard to finally integrate cryptocurrencies into national financial systems and mitigate the financial risks of operating with them. Authorities want to create unified game rules and to mitigate the risks. So, the problem of volatility will be solved over time.
Although cryptocurrency is one of the safest payment methods in the modern era, it has its own traps and pitfalls. It is worth noting that the digital currency market is not immune to fraudsters. The ordinary emission is conducted by the national central banks while the so-called “miners” are engaged in the cryptocurrency “emission”. There have been a huge number of crypto exchanges recently that offer services for transferring and buying cryptos. There are many scammers among these exchanges. You should be careful when working with crypto exchanges, and choose reputationally clean and reliable partners. The CoinGecko portal, which observes cryptocurrency thematic, has its rating of the most reliable and trustworthy cryptocurrency exchanges. We advise being careful while researching everything about the safety of cryptocurrencies and keep in mind that.
How Cryptocurrencies May Help Small Businesses?
Still, the main problem for small businesses when implementing cryptocurrency settlement — is it worth a shot? Currently, the opportunities for the installment of a cryptocurrency payment system in small businesses are vast. Naturally, it is more expedient for you to pay in cryptocurrency if you are a digital business specializing in the provision of Internet services. But you cannot be tied to this area. Issues with financial and tax settlement still have not gone away. Most likely, you should convert your cryptocurrency earnings into regular currency. However, implementing cryptocurrency in your business will create convenience and choice for your client, which benefits you in the future. The help of a remote Python coder can be more than useful in such an issue. Average Python developer salary in Ukraine is $58,800 based on research over several local job portals and $76,526 in the USA, respectively.
A successful small business is, first and foremost, a satisfied customer who wants to return with his friend. If you have your own e-commerce platform, you should know that mass crypto payment is not a distant future. Many online users lean toward digital currency payments. This can become a crucial point for small businesses in their further development.
Why is cryptocurrency so popular? Blockchain technology makes cryptocurrency one of the most secure payment methods in the world at the moment. In our digital world, cybersecurity is starting to come first in terms of priorities. For small businesses, the cryptocurrency payment option could be the key to expand their clientele and help the business grow further.
Furthermore, you should not forget that cryptocurrency is not only a convenient and reliable payment method. It is also an attractive investment. Small businesses often do not have large amounts of financing, and not anyone can afford bank loans that will weigh heavily on the company’s profits for a long time. The digital currency investments, although they are riskier, can become a source of the necessary long-term financing for small business development and growth.
The most important thing that cryptocurrency gives to small businesses is protecting your profits. Transparency and security of crypto transactions allow minimizing any customer fraud or machinations. Blockchain technology is built in such a way that all cryptocurrency transactions can be traced literally to the smallest detail. At the same time, the complexity and massiveness of the code are so great that it is not possible to interfere with it in any way for villainous purposes. Security and transparency are arguably the two major benefits of cryptocurrency for small businesses.
The crypto-boom began less than 10 years ago and continues to change our life. For a small business to survive and develop in the future, it is simply necessary to integrate into the current trends of total digitalization. Cryptocurrency is not only about security and innovation. This is the future that comes around the corner, and it is shaping our present now. Comfortable usage, speed and reliability of transactions, and the high-level anti-fraud security are key points that will help your small business become more successful and profitable.