Cryptocurrency such as Bitcoin is quickly starting to have an impact on many different types of business from retail stores, to agriculture, and especially to finance. If you are a business owner, you must start thinking about how cryptocurrency will impact your business, and also how you can use it to add more profit to your business. Keep in mind, bitcoin is not just about sending money. It is also about the technology behind it – the blockchain. Here are some ways bitcoin will be impacting business, not just retail and finance, and how you can take advantage of it moving forward on your business projects.
The first thing cryptocurrency factoring of your business is in sales. Traditionally, payments incoming to your business will be either through a card, check, or through electronic bank transfer. Cryptocurrency is unique to this since there is a very little fee, quick transfer time, and also every transaction can be independently verified through the blockchain. There is also a sense of anonymity to it. Many businesses such as retail have really started to embrace cryptocurrency instead of fighting it, seeing it as a way to be able to offer customers a new way to pay. Many consumers are now demanding the ability to be able to pay in cryptocurrency.
Another cryptocurrency factoring of your business can be in using the blockchain. This new technology has the ability to indirectly verify transactions. The fee is also very low to use this technology. Credit card fees can really eat up profit for your business, especially if you do an online business such as online transactions that mostly uses a credit card. Using blockchain can potentially save you thousands of dollars every year in credit card fees. Since the blockchain is also public, you can also verify each transaction.
If you do decide to accept bitcoin into your business model, you should do some research into the tax situation and the regulatory situation in your location. Since cryptocurrency is a new technology and is quickly becoming a trend in business, not every location has the same taxation policy. Some places consider it an asset that can increase in value which will have a capital gain tax, some places consider it more of a property. Some places have even tried to ban cryptocurrency seeing it as a rival to fiat currency. You should consider seeking out the advice of a financial expert if you will be doing a large volume of crypto transactions in your business.
Price can really add to your profit, or lower your profits depending on what way the price goes in crypto trading. Since the price of crypto can go up 100’s or down 100’s every day, you need to make sure that you have some sort of buffer so that you are not as much impacted by price swings from crypto. Many merchant accounts now have a feature that allows you to instantly convert the cryptocurrency into fiat currency which can really mitigate the risk factor of price swings.
Using cryptocurrency in your business can add a new stream of income, make business easier, and also gives you customers a new way to pay you. You should make sure that you are aware of how the technology works, how the taxation/regulatory system is where you are, and also make sure you have a plan in place to buffer the swings in price. especially with the main crypto coin bitcoin. As cryptocurrency and blockchain technology evolves into daily life, make sure your business is set up to be able to handle it.