5 Ways Small Businesses Can Benefit from Utilizing Cryptocurrencies
- Written by Diana Smith
Over the last couple of years, cryptocurrencies have become a very important part of the financial landscape. Still, the alternative nature of these types of financial assets still keeps most of the small businesses on the fence about the whole matter. How can these assets benefit your organization? Are cryptocurrencies suitable for the SMB sector in the first place?
Let us try to answer these questions and see how and why small companies should get into the whole digital currency game.
Expanding your payment options
Customers appreciate convenience regardless of the scale of your business. Adding cryptocurrencies like Bitcoin to your payment options should definitely broaden your appeal, especially among the younger populace. There is another thing to consider, though. If you want to start an online store, you have to factor in international clients. Since cryptocurrencies can pass national borders without the involvement of tiresome bureaucracy, they make the perfect asses for international transactions.
Lower transaction fees
In the previous sections, we have mentioned that cryptocurrencies exist outside the traditional financial system. That is true – digital currencies are decentralized, have no regular authority, and don't require the involvement of third-party financial institutions. As we’ve seen, one of the benefits of this situation is that cryptocurrencies make international transactions as streamlined as they get. But we also need to keep in mind that all transactions (national and international) are completely free of various fees. This can be used as a powerful tool for keeping your company competitive.
Opportunity for joining the blockchain
Up until now, we have discussed the possibility of your company accepting and trading various digital assets. However, the opportunities for your small business don’t end up here. You can actually invest in a professional cryptocurrency mining rig and start the production of digital currencies yourself. This is an excellent opportunity to establish a secondary income flow that will keep the company floating during slower months. Also, your stockpile of digital coins can be used to kick-start various reward programs, pay off your employees, and in a number of other creative manners.
Excellent Fraud and chargeback protection
Since cryptocurrencies are devoid of any kind of regulations and supervision, you may get the impression they are very vulnerable to fraud. However, that is not the case. Blockchains are designed with anti-fraud mechanisms built into their very core. For instance, crypto transactions can’t be overridden or reversed. That means that your assets will be completely protected from the common chargeback fraud. Also, cryptocurrencies don’t know the concept of debt (you can spend only the coins you own). So, you can, at any moment, be sure that your clients are solvent and ready to back up the transaction.
Branding made easy
This is another topic we briefly touched upon in the previous sections. Namely, cryptocurrencies were imagined as an opportunity to the legacy banking system – a part of the global libertarian movement aimed at relieving trading from the burden of politics, national interests, and banking fees. These values carry a lot of weight. Accepting cryptocurrencies as a part of your financial arsenal will allow you to brand your organization as a forward-thinking, contemporary company that thinks outside the mere boundaries of profit and expansion.
We hope these five considerations gave you some general idea of how cryptocurrencies can benefit your booming small business. Although they were often written off and proclaimed dead, digital coins always proved the critics wrong. Since these assets are here to stay, you can lose very little and gain much by charting these grounds. All you have to do is a decent rig and will to experiment. With so many good things on the table, we say it's well worth the trying.
