Technology is changing company processes and the entire financial landscape. The response of both small and established businesses to these new technologies determines whether or not they will swim or sink. Some of these fantastic technologies include various cashless payment options such as Bitcoins and Blockchain.
According to experts, the digital currency bubble isn’t bursting soon despite the fluctuating prices. In fact, it brings forth many benefits, particularly for small and medium-sized businesses. These enterprises can make the most out of cryptocurrency technology in the future. But following the footsteps of other companies blindly can be a big dampener because what has worked for one company might not work for every business. Besides, you don’t have to rush into integrating these ‘fancy’ techs without weighing their relevance, pros, and cons.
That said, here are seven clever ways small and medium-sized businesses can benefit from digital currencies.
1. Fast and secure transactions
International bank-to-bank cash transfers and payments are becoming more complex and sometimes might take several business days to complete. Most startups and consumers may not want to wait that long. Fortunately, Blockchain and its laser-fast digital currency transfers can be helpful.
The Blockchain is simply a distributed ledger that collects and keeps data across thousands of nodes (various PCs connected to a particular network) globally. This implies that Blockchain commands a major computational power that makes it easy for users to transfer digital currency within a few seconds.
Besides, there’s no central entity to confirm and manage these transfers. No one can hack easily hack this kind of network to manipulate the ledgers. These instant, incorruptible, and transparent transactions on the Blockchain don’t cost much. This gives small and medium-sized businesses a special edge over established market players who majorly depend on time-proven, slow, expensive transfer solutions and financial institutions.
2. No intermediaries
Digital currency has eliminated the need for intermediary institutions such as money transfer systems, law firms, real estate organizations, and banks. Additionally, this technology holds the potential of enhancing transparency by offering citizens control over voting.
Startups can enjoy the benefits of eliminating the middleman. These benefits include fewer mistakes, massive reduction in both production and service costs, higher operations efficiency, and more. Smart contracts, one of the important elements of Blockchain, facilitate performance with no recourse to the courts. Once you execute these contracts, you cannot modify or revoke them. They simplify all statements, eliminate ambiguity, and render court trial process useless.
The moment a company starts using smart contracts, they get the ability to save their hard-earned revenue by reducing the bank fees and legal fees as well. Probably this is the reason an increasing number of startups are working toward integrating Blockchain in their operations.
3. Better management on the Blockchain
Basically, Blockchain is the cornerstone of many digital currencies. It allows small and medium-sized businesses to reduce the costs associated with transactional systems significantly. The major benefits of cryptocurrencies are that they are digital assets. They are data rather than conventional currency.
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Various business networks in use today are vulnerable to data breaches, inefficient, and expensive. A transparent, resilient, and secure Blockchain technology particularly smart contracts, is impenetrable to an unauthorized party interference can be a reliable solution to the problem of data breaches.
Note that smart contracts are computer-generated protocols that function as self-authenticating, immutable, and legally-binding agreements between the agreeing parties – employers and employees or buyers and sellers. The self-executing ability of smart contracts makes it easier for the parties to digitize and streamline the administration of company management process. Smart contracts can do the following.
- Eliminate many company management mistakes by offering a higher level of automation
- Accelerate transactions and minimize their cost
- Eliminate the risk of mismanagement and fraud
- Shorten various business cycles and increase their efficiency
- Establish a higher level of trust between two or more contracting parties
Experts assert that Blockchain is an excellent business tool that promises better security, resilience, and transparency. It can help business owners to laser-focus on a more important strategy rather than getting bogged down with boring, routine tasks.
4. Huge investment opportunities
Well, there are countless practical uses of cryptocurrencies. But you don’t need rocket science knowledge to know that these currencies can be partially used to boost the financial holdings of business organizations and individuals. For instance, if you bout one Bitcoin in 2010 when its price was less than one dollar, you could have thousands of dollars today.
While most countries don’t recognize digital currencies as an investment and financial instrument, the legal and regulatory digital currency landscape is changing rapidly. Russia, Japan, China, and other countries are striving to legalize the use of cryptocurrencies. Therefore, it makes sense for any business or individual who uses the digital currency to buy more crypto now and get better investment rewards in the future.
5. Recognition at a universal level
Digital currency is not bound by interest rates, exchange rates, transaction costs, and other country-specific charges. Thus, you can safely use it at an international level without experiencing difficulties. This can save a lot of money and time in the part of any company.
6. Customer anonymity
Your valuable cards like credit cards, ATM cards, and debit cards are all linked to your home address, name, and other personal identification details. With insecure systems, these details can be accessed by unauthorized third parties. Digital cryptocurrencies are associated with highly secure systems, and that means your personal and financial details are secure.
7. Stay ahead of the competition
Let’s face it; competition is real, and every company strives to outshine the other. Digital currency is gaining popularity, and if your company starts using it now, you are likely to have an edge over your competitors in the future. You will be seen as an innovator offering the best to their customers. Besides, you will be able to attract the right prospects and retain customers.