Significant technology development for the last two decades has led to the establishment and successful evolution of virtual currencies. Nowadays, there’s hardly anyone who hasn’t heard of Bitcoin, and its popularity is constantly growing.
If before people considered it only a trading tool, providing the possibility to play with the rate and earn some cash, now such coins can fully replace fiat currencies. Numerous sectors, including real estate, insurance, banking, online casino niche, and tourism, already accept crypto transactions from their customers. Even some restaurants now provide the possibility of payments via Bitcoin, so the future is already here. The industry seems to develop faster, so let’s look at all the advantages and disadvantages of using cryptocurrencies in a business: we will discuss the positive points first.
Compared to fiat currencies, all transactions proceed faster, and special ciphers are used to verify them. Key codes are implemented to provide additional identification, making the procedure simpler and safer. All businesses and customers’ data are stored on a blockchain, and it’s impossible to change any details, guaranteeing total security.
While all fiat transactions are processed via banks, crypto users can skip this step. The main aim of cryptocurrencies is decentralisation, implying that no financial institutes or governments can regulate their activities. Full users’ control is an undeniable benefit for any business, avoiding the need to invest extra cash.
The payment services operating globally usually provide high fees for their users, which is the main source of these companies’ income. For instance, PayPal usually charges up to 4% of the transaction amount, which is usually costly for people. Cryptocurrencies usually provide zero commission, and companies actively use this benefit.
However, we know that nothing is perfect! According to Forbes, cryptocurrencies will transform the world, but they still have a range of disadvantages, so take a look at the main negative sides.
All coins are quite volatile, and their prices can change daily. For instance, most currencies experienced a significant decrease this spring, influencing all asset holders. The behaviour of the market is often unpredictable, even though experts make forecasts concerning all trends. Businesses can face unpleasant surprises that usually don’t happen when using traditional money.
Even though it’s still the greatest advantage for many users, allowing them to keep and spend the assets without any control, it may be a problem for businesses. Decentralisation implies no regulations and no guarantees, respectively. There are no special rules and laws protecting the company in case of any concerns.
This may be the most significant disadvantage of cryptocurrencies: a lot of people don’t believe in this technology and state they would never use it, considering blockchain a new type of fraud. Such concerns have the right to life since, with all the safety and security, cryptocurrency wallets are periodically subjected to hacker attacks. The market is growing exponentially but is still far from global recognition.
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