Many financial experts predict that bitcoin and blockchain technology will cause the most considerable business disruption since creating the Internet. Consumers adopting cryptocurrencies are catalyzing the need for businesses to understand how they are playing in this space. Failure to adopt these technologies may cause businesses to get left in the dust of their competitors who do adapt. Platforms like cryptoexchange.com also help accelerate this trend by making the purchase of cryptocurrencies so simple that any business owner or consumer can start.
Here are a few reasons how bitcoin is already transforming the way we transact with other parties from both a consumer and business perspective.
Business improvement
As is true in most businesses, the more leads that make it through a sales funnel, the more profit can be made. When companies accept bitcoin as a part of their day-to-day transactions, they open their doors to an entirely new set of prospects. The secondary benefit is that consumers can complete transactions without the hassle and at a more accelerated pace. Bitcoin transactions can take as little as 5 minutes which is particularly advantageous for large purchases.
Currently, Domain registry services such as Cheapname now accept bitcoin. Other online companies such as Shopify and WordPress allow users to set up their online businesses and accept bitcoin as a payment method. Not only have online stores seen the benefits of facilitating bitcoin transactions, but so has the brick-and-mortar world, including Elon Musk’s company, Tesla, and Virgin Galactic. As an increasing number of sellers continue to accept cryptocurrency payments, it will only be a matter of time before more will follow suit.
Tackling issues in security
Cybersecurity and cybercrime have become a popular topic among businesses today, so much so that the World Economic Forum (WEF) highlighted this as one of the most significant risks facing the world today. Due to its immutable and decentralized nature, blockchain technology prevents data theft and builds a more secure Internet against DDoS attacks.
Furthermore, many believe bitcoin will make financial transactions more secure since all records will be stored on the distributed ledger indefinitely. Attempts to tamper with this data are nearly impossible since changing one data point will change the entire chain of data. Blockchain’s record will be essential for tracking payments, which currently is impossible with cash transactions.
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Removing the middleman from investments
Currently, investors must transact through a brokerage which is typically necessary for security reasons. However, due to the added overhead, the investor then takes on the added costs in fees. With blockchain and cryptocurrency, investors can invest in assets directly without the need for a middleman. Therefore, investments that were typically unattractive due to high costs may be worthwhile when buyers and sellers can directly transact with each other.
Removing the middleman is beneficial in more situations than investing. Since a buyer and seller can conduct a transaction directly, the bank’s function can be bypassed altogether. Users can facilitate these transactions through a password known as their private key and receive funds through a public key.
Stabilize Economies
Society continues to face alterations on a large scale due to blockchain’s wide range of uses. Today, several economies are known to be unstable due to government manipulation. Of course, cryptocurrencies can’t solve all of the problems in government today. But due to their finite supply, they can remove much of the hyperinflation that occurs. As a reminder, hyperinflation occurs when the government continues to print money in excess until the currency is devalued to almost nothing. Bitcoin relies more heavily on the laws of supply and demand to indicate its price.
Maintaining records for taxes
Since bitcoins’ ownership gets transferred from party to party, two people can never hold the same value. Therefore, a clear record will store consumer’s data. The single source of truth will accelerate the speed and accuracy in which accountants can calculate taxes and the government can distribute funds.
Our world is continuing to transition into a world dominated by digital currency. This article highlighted some of the possible use cases of bitcoin and how it will affect and transform businesses. Many continue to expect the full adoption of cryptocurrency based on these very reasons.