Is the High Volatile Nature of The Crypto Market a Concern to Business Owners?
Yes, without a doubt that the high volatility of the cryptocurrency market it is a big concern for business owners and one of the main reasons why some business owners are hesitant in adopting cryptocurrencies in their business.
One of the main reasons why cryptocurrency was created is to serve as a digital currency to solve some of the problems of the conventional currency. However, cryptocurrency technology has grown above just being a digital currency and payment solution, it benefits has broaden and has much wider use cases. Even though cryptocurrency and its technology is still in it's early years, it has achieved a lot of growth and adoption in various industries and sectors, most especially in the financial sector.
Volatility in the cryptocurrency space is mostly caused by a variety of factors such as negative sentiments in the market, demand and supply. One of the main reasons why I think that the high volatility of the cryptocurrency market is a big concern for business owners is in the area of sending and receiving payments. When a customer pays for any products or services with a particular cryptocurrency, there is a huge possibility that the dollar value might drop when the payment is made.
Since cryptocurrency isn’t globally accepted yet and hasn’t gained full adoption yet, this becomes a problem for business owners who want to convert the received cryptocurrency to fiat currency for other offline transactions. Same applies to business owners who want to make purchases with cryptocurrency. Since the payment is determined by the current dollar value, it would mean that more units of the cryptocurrency would have to be sent to compensate for the lost value in dollars. Business owners who have received a lot of funds via cryptocurrency would be negatively affected when the market is down as the overall dollar value of their cryptocurrency holdings will be drastically decreased.
How Businesses Can Be Boosted by Cryptocurrency
With this increasing numbers and positive statistics of the cryptocurrency market, there is no doubt why more and more businesses are beginning to adopt cryptocurrency as blockchain technology and cryptocurrency and shown to be one of the fastest growing technologies and innovations. The main reasons why cryptocurrency has achieved so much growth since its invention and introduction is the benefits it provides compared to the fiat currencies and the conventional financial systems.
Businesses who have already adopted cryptocurrency are taking advantage of the benefits cryptocurrency provides to increase growth, expand their reach and skyrocket their business. The main area which businesses have shown to adopt cryptocurrency is through accepting cryptocurrency payments and utilizing cryptocurrencies for sending and receiving cryptocurrency transactions.
Improved payment system
We all know that the centralized and conventional financial system is flawed and also there are so many issues that might arise when it comes to making or receiving successful payments. This can greatly affect the business sales negatively and can also lead to losses in the business. Cryptocurrencies solves these problems and provides improved payment system for businesses to ensure successful sending and receiving of payments in less time without any problems.
Increased speed of operation through faster transactions
Businesses can benefit from the speed and faster transactions cryptocurrency provides to increase speed of their operation. The conventional financial system can be a very slow process that can lead to slow operational speed due to different factors such as network failures, server downtimes, number of third parties involved for a transaction to go through etc. These negative factors can affect business operations such as slow payments and not being able to receive payments which can affect sales and also cost the business money.
However, with cryptocurrency, these problems are solved as it ensures faster transactions and allows the sending and receiving of payments anywhere in the world faster and in less time. Some cryptocurrency transactions takes seconds to complete, making it such a powerful innovation for businesses who aims to send and receive payments anywhere in the world faster and simplify the process.
Cost reduction
This is also another area businesses can benefit from cryptocurrency and be boosted through cryptocurrency transactions. Businesses can greatly cut down cost in their operations just by adopting cryptocurrencies. We all know how expensive it can be to send fiat transactions to different parts of the world, even payment solutions such as paypal and payoneer can charge almost 3% in fees for transactions. These charges add up to the cost. With cryptocurrency, the cost is reduced greatly as some cryptocurrencies take a very small transaction fees and some don’t even have fees at all. These makes cryptocurrencies a great solution to reduce cost for businesses.
Full control of funds
With cryptocurrencies, business owners can have full control of their funds. One of the downsides of the centralized and conventional financial system is that the business money is still in the custody of the banks or central financial institutions. They can decide to freeze the business account for minor offences without any warning, or the banks can suffer from bankruptcy, leading to huge loss of funds. Also, the government might have certain policies and regulations that might affect the funds controlled by the centralized financial institutions. With cryptocurrency, the business owner has full control of the business funds and can make his/her decisions without any interference of any third party or centralized entities.
Security
This is one of the main benefits of cryptocurrencies and why businesses can benefit from it. Cryptocurrency transactions are secure as it runs on the blockchain. This means that transactions are protected by cryptographic mechanisms and encryptions that ensures secure transactions and also transaction cannot be altered or hacked which can lead to loss of funds. This can be of great benefit for businesses as they can be rest assured that the transactions are carried out in the business are secure.
Easy automation
The power of automations in business can never be underestimated. When it comes to boosting a business to the next level, automations is very important. This allows businesses to make money without any human input. While automations is still possible with the available technologies using the conventional financial system, it is still not 100%, as withdrawals needs to be made manually.
Also certain regulations can cause a stop in the automation process, or the automation process can be slowed down due to third party interference or downtimes or problems in the centralized financial entities. However, with cryptocurrencies, the whole process from start to the funds landing in the business wallets can be fully automated without any human input or fear of downtimes or third party interference. This becomes very powerful for businesses when it comes increasing sales and attracting customers in any parts of the world.
