Why Small Businesses Should Experiment with Cryptocurrency
Since 2008 cryptocurrency has come a long way from being just an unknown oddity to a commonly used term in the commerce and business world at large.
For the starters, cryptocurrency, built on blockchain technology, is nothing but a digital currency that leverages cryptography to ensure the digital communication between third parties is unhackable. The unhackable attribute of this currency is what makes it so widely popular among business, besides its investment potential.
In this digital age, hacking is one of the prime threats that loom over businesses, irrespective of the fact whether they are big or small and it’s not something that you can easily fight against.
This is where cryptocurrency helps with its unhackable feature.
The 3 crucial benefits cryptocurrency for Small Businesses
# Zero Processing Fees
Traditional transactions require you to pay a predetermined processing fee because it involves a go-between for managing transactions.
However, in the case of cryptocurrency, there are no middlemen involved, and so you can easily save on the processing fee part.
# Alternate Payment Options
The best advantage that cryptocurrency offers are that it provides an additional payment option. Though it may not appear to be a big thing for businesses right now, then it could lead to additional sales for your business, going forward. With digital safety becoming more and more of an issue, the desire to use cryptocurrency is sure to rise.
# Speedier Transactions
Crypto transactions are speedier than traditional operations. While the latter may take two-to-three days, the former might just a couple of seconds. However, there are few exceptions, like the ACH transfer that may take a couple of days to convert.
How to Handle Taxes for Cryptocurrencies
Filing for cryptocurrencies is same as traditional currency because the earnings through Crypto are treated as a cash transaction. The process has become a lot simpler with most wallet accounts automatically converting crypto into cash.
But then, it’s better to find out what your country’s tax laws advice concerning crypto.
Agreed, Cryptocurrencies have faced criticism from big banks and big investors for its high volatility issues and for being not regulated like other currencies. However, banks and investors have started warming up the idea of cryptocurrencies and are even considering to make some decent revenue for themselves by investing in tokens like Bitcoin and Ethereum.
And not just banks and investors, even financial institutions, legislative chambers, and regulatory bodies are waking up to the fact that though cryptocurrencies may have a long way to go in terms of establishing trust with the common man and commerce, it’s going to be the face of the market, going forward. So, as a small business owner if you are thinking twice about using cryptocurrencies, then you don’t have to. Small business owners should bear this in mind that cryptocurrencies are facing increased regulatory scrutiny not because they are suspicious but mainly because they are gaining grounds in the marketplace and thus needs constant observation and monitoring. To know more about cryptocurrencies and its underlying technology blockchain, you could check out GoodFirms’ blockchain research report on the same.
Author Bio: This is Jennifer Warren, a Content Crafter for GoodFirms – a review and research platform for mobile app development, web development companies and more. The company publishes research report on a time to time basis, the latest one is on PPC Management Research.