Cryptocurrencies, as a medium of exchange, is witnessing widespread acceptance. There are numerous advantages of accepting cryptocurrencies for payments that are unique to them. Major companies like Microsoft and Wikipedia have already started to accept cryptocurrencies for payments.
A primary concern regarding cryptocurrencies for payments is the idea that cryptocurrencies are very volatile. People seem to think that there is no guarantee about the value of your crypto, which is a significant roadblock for people to accept crypto for payments. While it is true that a lot of cryptocurrencies are very volatile, a type of cryptocurrency called Stablecoins is not. They were designed with the intent to make their value equivalent to fiat currencies and make it possible for people to transact with the confidence that their funds will not change in value drastically. For example, – USDT is a cryptocurrency whose value is pegged to the USD, which means that the value of 1 USDT will always be equal to 1 USD. Even though people still use volatile cryptocurrencies like Bitcoin for payments, for the conservatives, stable coins are the way to go for accepting crypto as payments. Let’s see how cryptocurrencies are something you should be using as a mode of payment.
A survey by cybersecurity firm Kaspersky Lab revealed that 19% of people globally had purchased cryptocurrency. This one is simple. Accepting cryptocurrencies means that you have a wider audience and pool of potential customers. The cryptocurrency market is booming, and even major financial firms like Goldman Sachs are investing in cryptocurrency, which is an indicator that it will only get more popular with time.
Rollbacks and Fraud Protection
As a business or an individual, an important concern getting paid in fiat is that a third-party has control over your money. Whether it is banks or online payment systems like PayPal, they can deny access to your funds whenever they want. Banks can rollback transactions if they think it was fraudulently made, and you might be left without your funds. It makes sense to want greater control over your hard-earned money. Cryptocurrency transactions by nature are immutable, which means that once you get your funds, it’s yours and you have complete control over it. Nobody can take your funds away, and you are safe from any interference from third-parties.
Quicker Settlements Across Borders
If you are accepting money from someone abroad, depending on the kind of transaction and the bank, it might even take more than a week before you see money in your account. Cryptocurrencies are way faster, and you can get your crypto in a matter of minutes. If you are using a wallet that uses off-chain transactions, you will get your funds instantaneously!
Cryptocurrencies are borderless also, which means that anyone anywhere who has cryptocurrencies can send you money, which makes it very valuable for companies who deal in places where the traditional banking systems are not efficient or completely absent.
Low Transaction Fee
As a general rule, cryptocurrencies have lower transaction fees than dealing in fiat. Banks and other financial institutions charge a hefty transaction cost for moving funds, and essentially people end up paying a huge part of their earnings just to send money to someone. If you accept cryptocurrency, the other party will have to pay a minute transaction fee or in some cases, even zero transaction fee. This is a huge incentive for people to transact in crypto. Quite recently, $1bn worth of Bitcoins were transferred with the transaction cost of $700, which was actually overpaid by around 20 times. It could have been moved by just using around $35. The same transaction would have attracted thousands of dollars by a traditional bank in the name of transaction costs.
People around the world keep their money in banks for safekeeping and to earn interest. The interest rates, however, are very low when compared to that of cryptocurrencies. Cryptocurrencies can rake in interest rates of up to 18%, which dwarfs anything offered by traditional banks anywhere in the world. If you are going to accept cryptocurrency, you can deposit your crypto on borrowing and lending platforms or exchanges to avail of high-interest rates.
Cryptocurrencies were designed with privacy in mind. For cryptocurrency transactions, no personal information is needed except for the wallet address. You can send and receive funds anonymously. This becomes important if you are dealing with clients for whom privacy is very important or even on your end, if you do not wish to reveal your identity to the person you are dealing with, no other traditional payment methods come close to offering this level of privacy.
Cryptocurrencies have revolutionized the way people do business and think about money. They are here to stay and will maybe even overtake fiat currency in terms of usage and popularity. As a business or an individual, you should be thinking about the future. Getting familiar with cryptocurrencies will only help you secure your future, so if you haven’t started accepting cryptocurrencies yet, begin now.
Griffex is a marketplace for smart sale and purchase of cryptocurrencies, a flexible trading platform presenting an opportunity for seasoned investors, retail traders, and cryptocurrency enthusiasts at managing multi-currency investment portfolio. Griffex adore the flexibility of trading with multiple cryptocurrencies, the sensational charm in new-age commerce and financing that has attracted millions towards this revolutionary mannerism of investing.