This is why business owners from around the world start to accept crypto payments. This is the reason why you often came through the Crypto open business group online while surfing.
But still, there are some major cooperatives that hesitate to receive crypto as payment.
You might be wondering why? Is there something wrong with accepting crypto in the long run and so on?
Let us dig deeper, to find answers to these questions
- Decentralization: Most investors are avoiding receiving crypto as payment due to decentralization. Crypto is basically a digital and decentralized peer-to-peer payment network. This means it has no physical presence and is not backed by any central authority.
Although governments around the world are stepping up to assert their regulatory power, crypto is not attached to any jurisdiction or institution. The value of the cryptocurrency entirely depends upon the value that various owners and investors ascribe.
Now when it comes to online platforms, a large trading activity takes place. Now if at any time, a loss of confidence takes place, it can collapse trading activity and an abrupt drop in value will be observed.
- High Volatility: The other factor that is preventing business owners from accepting crypto as payment is its high volatility. As it is not backed by any central authority, a huge rise and drop in the value can ruin the stability of the business.
This volatility has been observed in the past. It is the result of volatility that has made the fortune of some investors and for some, it proves to be a misfortune.
- International Hindrances: There is a high risk involved in international payments because of exchangeability. For example, if you go with Coinbase, it will exchange Bitcoin and Etherium for some major currencies like USD, Japanese Yen, and Euros. But when it comes to other cryptocurrencies they can only be exchanged for USD or Bitcoin.
So for example if you are a British business owner and are drawing your main income in pounds (GBP). Now you wish to pay an Australian supplier in Australian dollars (AUD) and that too using cryptocurrency that can only be exchanged for USD or Bitcoin, you will have to face the additional FX risk.
Accepting crypto payments in the long run
Although cryptocurrencies are described as the Wild West of the financial system. They are also considered a threat to existing financial service providers. But they can enable businesses to transfer funds around the world easily and rapidly and that too without traditional bank intermediation.
Moreover advanced cryptographic techniques are capable enough to protect funds from theft and hacking. The underlying blockchain technology further filters out fraudulent or duplicate transactions thus they are secure enough to go with. This means crypto payments are going to be beneficial in the long run.
On the other hand, cryptocurrencies are known for providing a broader market. This means going with cryptocurrencies is going to give a new market of tech-savvy consumers who have a community within the cryptocurrency market. Moreover giving an option to pay through a digital wallet will allow you to dip into broader markets throughout the world.
Cryptocurrency is also known for its rapid processing. It gives you instant access to funds unlike a credit card that requires a few days to batch out and process. Fast transactions help to streamline business cash flow.
Apart from this, cryptocurrency demands a low transaction fee. It depends upon whether one is accepting cryptocurrency to a personal wallet or through a third-party provider like Coinbase.
Most of all, cryptocurrency is well suited for eCommerce. This is so because once the transaction is completed it is difficult to reverse unless there is the consent of the merchant. This provides eCommerce business owners with more security when it comes to fraud. This is possible because there is not any involvement of a middleman like a bank that can withdraw funds from the account without consent.
These benefits are going to change the mind of major cooperatives down the road. They are more likely to go with payments using cryptocurrency. It is just going to be similar to the situation when companies started embracing the internet or cloud servers after knowing their benefits and security.
Conclusion:
Although cryptocurrency has been in the market for a certain period of time, it is still in debate. This is because of its security risks. This is the reason why many big cooperatives are still in doubt. But with the advent of technology things in the world of cryptocurrency are changing at a rapid pace. Thus it is not wrong to say that they are soon going to be a part of this digital revolution and start accepting crypto payments.