Should You Start a Cryptocurrency Business: Pros and Cons

We’ve seen technology revolutionize every aspect of our life. This stands true for our payment systems as well. In addition to Apple Pay, Amazon and what not, we also have cryptocurrency. Cryptocurrency is picking up quite the popularity amongst users including the use of bitcoin for business and people indulging in cryptocurrency trading.

How Is Cryptocurrency Influencing the Business Sector?

Excluding Bitcoin ATMs, roughly 2,300 US businesses accept bitcoin as payment for transactions, according to some estimates from late 2020. As a digital payment system that does not rely on institutions to authenticate transactions, cryptocurrency streamlines and speeds up financial transactions.

A coin has two sides, and so does the use of cryptocurrencies like bitcoin in business, which has both advantages and disadvantages. Some of your concerns about accepting this as a payment method for your company are well-founded. That is why we are preparing facts that may be weighed on a scale by you to see if your firm is at risk.

Let’s look at the digital currency’s pros and cons:

Pros of Using Cryptocurrency for Business

1.   It is safe and secure

Transactions are encrypted in cryptocurrency. Thus, “cryptocurrency.” The blockchain tracks each coin and wallet, requiring advanced coding. The end goal is to improve security.

Also, compared to fiat money, cryptocurrency transactions are much faster. Receiving and processing payments in businesses requires speed.

To further maintain the security of your transactions, make sure you use a no log VPN to carry out any transactions related to cryptocurrency. A no logging VPN like VeePN will ensure that none of your data and transaction history is ever saved so your data and money is always safe.

2.   It helps your business evolve

Change is part of growth, and times are changing. Many people are accepting digital currencies, and customers want faster and easier payment options. This important emerging space for currency evolution is entered by adopting bitcoin for business or any other cryptocurrency.

3.   It helps increase revenue

It’s in your company’s best interest to be able to provide your customers as many payment choices as possible. Profitability is the ultimate goal of any business. To increase conversions and user interest, you should make it feasible for customers to pay using a variety of cryptographic currencies.

4.   Reduces chargeback fraud

It’s called “chargeback fraud,” and it’s when a cardholder contacts the bank that issued the card and asks to reverse payment or get a refund while still keeping the goods that they bought. Cryptocurrency does not have this problem because of the tight tracking system that is built around the blockchain technology. It’s nearly tough to pull off a chargeback scam.

5.   Its low on transaction fees

Transaction fees are imposed by several payment systems. PayPal, for example, levies a transaction fee of up to 4%. (or sometimes more). In the meanwhile, the fees associated with cryptocurrency transactions are often negligible, if not nonexistent. Some examples of fees are Binance’s 0.04–0.10% transaction fees, which are based on the volume traded.

6.   Removes the middle man

Banks and online markets were intended to be replaced by cryptocurrencies as the intermediaries. In order to accomplish this, the blockchain will use a decentralized ledger of linked records to replace the central system.

Cons of Cryptocurrency in Business

When discussing digital currency’s pros and cons, we are now moving towards the disadvantages of using this relatively newer payment system on the market:

1.   Its super volatile

Bitcoin’s value can fluctuate greatly, making it difficult to predict its worth. Bitcoin’s price fell by 30% in a single day in May 2021 before recovering to a new low of 12%. Volatility can be influenced by a number of things, including security breaches, uncertainty about its future value, and bad news.

2.   It’s still unknown in markets

Cryptocurrency has yet to gain widespread acceptance. Some people are still unfamiliar with digital currency. As a result, you must take into account whether or not your customers choose to utilize digital currency. Even though they own wallets and coins, some people choose to trade with fiat money or other traditional payment methods.

3.   The setup process is complex

It may take more time and effort to set up your cryptocurrency payment options than with traditional forms of payment. It’s up to you whether you want to set up your own company wallet or rely on third-party exchange services.

In the long run, these may seem like small setbacks, but they can be a significant deterrent at first. Make sure you always use a no log VPN when setting up the wallet and the payment systems.

4.   It is unregulated

Because of the lack of regulations surrounding cryptocurrency, your company may be at risk of being a victim of scams and the like. It’s also more dangerous than investing in the stock market.

5.   Your are responsible for security

If you’re the victim of a hack and your virtual wallet is stolen or your currency is accidentally deleted, you’re on your own. You can think of it as the same thing as someone stealing your debit card and stealing all of your money, but in this situation, no bank will replace your virtual wallet.

6.   Has high potential for scams

Blockchain is a cutting-edge technology that is at the heart of bitcoin. Internet fraudsters and hackers might take advantage of this key component to swindle cryptocurrency owners via social media platforms like Facebook, Twitter, and Instagram because of the newness of this technological aspect. Fake cryptocurrency investment schemes have been utilized to defraud crypto-users of their money.

Conclusion

After weighing the advantages and disadvantages of accepting bitcoin as payment in your firm, I hope you can come to a decision that’s advantageous to your organization. Sometimes, one needs to take that bold step while considering its worth. Just make sure you always use a good quality VPN to connect to the wallets and the marketplaces.

 

 

 

 

 

 

 

 

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