How Cryptocurrency Benefits Businesses
Why should a business go through the process of transitioning from only traditional currencies to accepting digital currencies? What is the benefit of moving to intangible currencies? Here, we will investigate the benefits of digital currency, and how it can fundamentally change the experience of vendors and businesses
Cryptocurrencies at the current point in time are driven by tight knit communities that are highly motivated. This means that if there is a vendor that begins to accept that cryptocurrency, there is a very high likelihood that that vendor will receive business through the community of that cryptocurrency. That is, the community will most likely support the vendor merely because the vendor is supporting their coin, even if they wouldn’t have purchased from that vendor otherwise.
In this way, vendors can essentially create business out of thin air by merely accepting a new form of currency (which can be kept in its form or transferred to other cryptocurrencies or traditional money). Further, it is quite likely that other cryptocurrency communities will hear word of these vendors that accept certain cryptocurrencies, and will likely petition to be accepted, producing even more potential business for very little work. Here, both the vendors and the currencies’ communities are benefited via mutual legitimization and exposure.
Vendors also get to enjoy the benefit of a few core attributes of cryptocurrencies: low transaction fees, complete transaction security, and the impossibility of chargebacks. When using credit card services or paypal, or essentially any payment method other than cash, vendors suffer rather large fees and costs. These services are generally the method through which vendors make larger purchases that would not be easily facilitated by cash-in-hand, possible, and they usually wind up costing the vendors a large amount of money which either bites into their profit margins, or is passed on to the customer.
With cryptocurrencies, since the transaction fees are essentially nonexistent (unless you want instant transactions, in which case you may need to voluntarily increase the transaction fee to a positively tiny percentage of the transaction size), vendors and customers need not suffer these extra fees and charges. Beyond this, transactions are 100% secure. Theft is almost impossible when cryptocurrencies are being transacted properly, and transactions cannot be intercepted, as they are being processed by thousands or even hundreds of thousands of computers around the globe.
Further, vendors currently have to deal with problems when an individual with a stolen card, or an individual who has malicious intent, uses their credit card to enact a chargeback on a purchase while having kept the merchandise. With cryptocurrencies, this is impossible, and a transaction is completely irreversible. Now, a vendor still ought to honor returns and other similar situations with a voluntary refund, but compulsory chargebacks would be a thing of the past.
Clearly, cryptocurrencies are a step above traditional money when it comes to making fast, easy, and secure transactions of any size. The only question to ask is, why not?