Cryptocurrencies are arguably the hottest thing on the internet right now. They’ve created an entirely new generation of multi-millionaires and have revolutionized the way people invest their money. After many years, cryptocurrencies are finally starting to draw Wall-Street’s attention, as well as mainstream investing and the business community.
Just recently, giant companies such as Tesla and Microstrategy have started pouring billions of dollars into Bitcoin in an attempt to make even greater profits. But why exactly are big businesses so attracted to cryptocurrencies?
What Makes Cryptocurrencies so Attractive for Business
Cryptocurrencies have more than one advantage. They rely on a revolutionary technology called blockchain, which uses the computing power of millions of computers worldwide. Cryptocurrencies can be used both as a payment method and a future investment, making them a versatile option.
They also have the capability of reducing fees and eliminating our dependency on central banks. They promise to protect our privacy while keeping cyberattacks at bay, thus creating a better and safer world.
Cryptocurrencies like Bitcoin and Ethereum are based on blockchain networks. Blockchain promises to become a tool that could help democratize the world of finance. It removes our reliance on big institutions and gives power back to the individuals.
When you make a transaction using blockchain, that transaction is posted globally on millions of computers that operate simultaneously. To compromise that transaction, you would have to break into every single computer. This property makes blockchain a safer and more transparent alternative to the current financial system.
Because cryptocurrencies work on blockchain networks and peer-to-peer interaction, they are entirely decentralized. Cryptocurrencies can remove a business’ dependency on traditional banking institutions, which could otherwise fall victim to cyberattacks, corruption, and bad management.
Cryptocurrencies offer a higher degree of control, but they also make you responsible for your own money. You won’t be getting it back if you forget the password to your cold wallet or if your brokerage account gets hacked!
Fees and payment
Most cryptocurrency payments are made directly between the buyer and the seller. This eliminates the need for middlemen like Visa or Mastercard, who generally charge a processing fee.
Because of this, cryptocurrency payments are advantageous for both consumers and businesses. Moreover, cryptocurrency transactions are irreversible, so once the money leaves your wallet, it’s out of your (virtual) hands.
As long as you can handle the high volatility, cryptocurrencies are becoming an increasingly appealing way to invest your money. With all the money printing going on lately, the risk of inflation has become a real threat. In contrast, many of the most popular cryptocurrencies have seen incredible price increases recently.
Regular cash loses its value by sitting in savings accounts that make almost no return on investment. Cryptocurrencies can serve as a hedge against inflation. They allow businesses to protect their money from being devalued while making a passive income at the same time.
Cryptos can store value just like gold and silver do. However, they’re stored on the blockchain network, so you don’t need to transport them. Compared to precious metals, they are much easier to transfer, convert back to cash, or divide into smaller parts.
It seems like nowadays we are constantly being watched. Our every movement is being tracked, and all online transactions are tied to our name and address. Cryptocurrency promises to provide a greater degree of anonymity and privacy since it doesn’t store your data.
Crypto allows people to hide their identity if they wish to do so. This favors businesses that operate in more controversial sectors. By accepting cryptocurrency as payment, they can easily attract more customers.
Cryptocurrencies have not only changed the world of business and finance but many other sectors and industries. For example, did you know that some banks and hotels accept cryptocurrency? And while you’re at it, try going for a crypto casino, where you can game safely and play with Bitcoin.
Fortune seems to be smiling at those who own cryptocurrency. We certainly live in exciting times, and the financial world is going through rapid changes. With cryptocurrencies only getting more popular, one thing is certain: this is just the beginning.