Cryptocurrencies are an entirely digital form of currency. Much like state-issued money, they represent value. Yet, no central individual bank or government controls it. Then, where does this value come from? It comes from the people that believe they can get goods and services for them.
The Benefits of Crypto
Cryptos can have a huge role in your online business. Over 15.000 companies accept them as payment. Let’s look at the reasons for it.
Every time you use a card to buy something, you share your personal information. Your name, address, and other sensitive details become available to the merchant. That allows vendors to track where and how you spend your money. Where you shop, what you eat, and everything you buy with a card can be tracked.
This is impossible when using crypto. You do not share any sensitive information with the other person.
You will never lose access to your crypto account. Banks and companies like PayPal can freeze your account at any given time. They will only reason that you are not following their rules. Additionally, you would have to wait a long time to get access to your account, and that could break your business.
You own your cryptocurrency. The bank can’t freeze it if you’re not following their rules.
You cannot receive fake crypto, and the sender can’t reverse a transaction. Credit card charge-back scenarios are not possible. Cryptos use a digital ledger, called blockchain, to record all transactions. That makes it impossible to commit fraud. Both the sender and the receiver must confirm the transfer.
And if someone were to hack you, they would need 0.65 billion billion years with current technology.
Cryptocurrencies are versatile and secure. They enable companies to be more effective and reach more customers. In fact, it doesn’t matter if you’re located in Venezuela, Zimbabwe, or Iran.
After all, anyone with an Internet connection can use digital money with no risk. For example, if you want to do business in Africa, you don’t have to worry about a Nigerian prince stealing your money.
The transaction speed is fast, especially for cross-border transfers. Instead of waiting for 3–5 business days, you will receive your payment within minutes.
You would need a bank account to use normal money. Also, the bank would charge you a fee every time you want to use it. Digital currencies have much lower fees because there is no middle man.
Still, if you’re using a third-party service like Coinbase to manage your account, you will have to accept some fees.
The Industries that Use Crypto
Mass adoption of crypto is still in the early stages. Yet, the technology has the potential to disrupt the banking industry and many others.
The web hosting industry is a prime example because webmasters value their anonymity. Bitcoin hosting is more common. Companies like AbeloHost offer their services in exchange for them. Offshore hosting is especially affected by this trend. People who opt for offshore hosting often prefer this method of payment. If you don’t believe this is the right choice for you, make sure to browse through the Bitcoin hosting reviews. You’ll definitely find what you’re looking for.
The Role of Cryptocurrencies for Your Online Business
Thanks to the Internet, we’re more connected than ever. It has never been easier to connect with people around the world. But our privacy and identity are under more risk.
There have been many scandals related to data leaks in the past few years. 23 million credit and debit card numbers were stolen in the first half of 2019.
Hackers can steal your credit card information through tracking scripts. Your voting preferences can be influenced based only on your Facebook profile. Even your most sensitive personal information is at risk.
Cryptos can play a massive role in the survival of your business. By using digital money, you protect not only yourself but also your clients. This is especially true if you’re running an online business. Transactions don’t need any sensitive personal data from either party. The security offered by crypto is second to none.
By having digital money as a payment option, you also enhance your brand. You show your customers you care about their privacy. It tells them you’re open to innovation and strive for convenience.
Also, you lose nothing by having another payment option. Actually, you stand to gain more. 25% of shoppers abandon their cart because they can’t use their favorite payment method.
Some industries have already welcomed digital money into their business. Overstock.com, Inc. was one of the first large retail firms to accept crypto. As a result, up to $120.000 of their weekly revenue comes from crypto payments.
In summary, cryptocurrencies are a faster, cheaper, and more secure payment method. Normal money can’t compare to the convenience of digital money. Digital currencies show great potential for disrupting banking and many other industries. Real estate, healthcare, and communication are some examples.
Cryptos are the next step in the evolution of money. For centuries, people have used gold and silver to buy and sell goods. Then, governments started printing paper money to show the value of gold. In the 1940s, the Bretton Woods Agreement tied all currencies to the US dollar, and the dollar got tied to gold.
In the 1970s, the Nixon Administration cut the dollar from the gold standard. Now, the dollar is equal to nothing. Legal tender laws are the only reason people use fiat currencies.
Web hosting is one of the first industries to accept crypto. Webmasters don’t need to worry about their privacy with them. After all, they keep their anonymity while still having access to superb hosting services.
It’s hard to tell exactly what the future for crypto will look like. Their value can be very volatile, and it’s dependent on how popular they are. In 2017, $6.2 billion was invested into 875 crypto startups. The same year, cryptocurrencies experienced peak popularity.
But reality struck in 2018. Many cryptocurrencies, most notably Bitcoin, had a surge in prices. 2019 looks to be a more stable year for the industry, and growth is positive. It will be worth paying attention to future developments in the crypto world.