There was a window in time when Bitcoin and Ether made millionaires overnight, but that was through trading, and had little to do with unrelated businesses. Now, if you have a new business or even an old one, are there any reasons why you should consider cryptocurrency? If you do adopt cryptocurrency, will it add any financial advantages to your business?
The Answer is Yes
Cryptocurrencies are volatile, they do not yet have a wide acceptance, and you may not even get the option to make or receive payments via Bitcoin or any other cryptocurrency during most day-to-day transactions. That being said, every time that you do get an opportunity to pay or receive money via a cryptocurrency, you will have a significant financial advantage, because there are almost no third-party fees associated with such transactions.
Near Absence of Third-Party Fees: The Huge Difference
Last October, a bigtime Bitcoin investor had managed to complete a payment/investment of 29,999 Bitcoins with a fee of $0.01 for the entire transaction!
To provide some reference here, consider the fact that the amount was equivalent to roughly $194 million/£147.5 million on that specific day, which would have cost them thousands of dollars to transact had he used traditional methods, because the banks or any other third-party involved in the transaction would have taken small chunks out of the money as their fee.
In peer-to-peer blockchain transactions, there are no active third-parties, although the miners need to be paid for their work, which is why a nominal fee is there. As one can imagine, the third party is neither directly involved in a business transaction, nor are the fees anywhere close to what a bank or any other financial institution may charge.
There are Risks
The primary problem with cryptocurrencies, and why they are not being more widely adopted, is the same instability which makes them so lucrative for trading. There is no sure way to tell if the currency won’t drop by hundreds of pounds overnight, which does add an element of risk to making such transactions, especially for larger orders.
On the other hand, there is also a chance that your current cryptocurrency stash will increase significantly in value down the line, which actually makes the situation even more confusing!
Major Business Energy Providers are Beginning to Consider Blockchain in the UK
The constant increase in oil and gas prices have resulted in both residential and commercial energy becoming more expensive every year. In order to somewhat counter this issue and keep the price of gas down for everyone, the largest energy supplier in the UK, Centrica, has started to explore blockchain technology.
Of course, the majority of the business energy and gas providers in the UK are not so considerate, but even in the absence of cryptocurrency payments, you can bring down the business gas rates you are paying right now by simply deciding to switch business gas and electricity providers.
The competition is fierce in the sector, so whether they accept cryptocurrencies or not, there is always opportunity for negotiating a better deal, as long as you are ready to switch business gas and energy suppliers at the end of your current contract.
As of now, blockchain technology is still being explored, especially because it has more areas of application which go much beyond just cryptocurrency. Cryptocurrency on the other hand, is yet to reach a stage where it can be considered by every small business as a viable option for every payment.
Perhaps it’s better to have a strategy which limits the amount of cryptocurrency transactions every day/week, as it would allow smaller businesses to explore crypto payments without risking anything big.