Cryptocurrency And How Its Impacting Small Businesses

Although cryptocurrency has a tendency to elicit vastly polarized opinions, it’s tempting to call it the great equalizer of the 21st century. The reason for this is simple: from massive worldwide conglomerates to small mom-and-pop businesses, people are confused about what cryptocurrency means for commerce. Many people simply dismiss cryptocurrency out of hand because they reason that if they can’t make sense of it, their customers won’t be able to either. The problem is that your customers can make sense of cryptocurrencies, and they’re using it in record numbers. Fortunately, there’s an upside: if they can figure out how to make cryptocurrency a part of their daily business, so can you—and you should probably start now before all your competitors are doing it.

Cryptos 101: How Do Cryptocurrencies Work?

Cryptocurrencies rely on a technology known as blockchain, which functions as a secure digital ledger for various online transactions. It’s less important to understand how blockchain works than it is to understand what blockchain does, but here’s a brief overview: unlike other digital records, blockchain isn’t stored on a specific server. Instead, it is copied and sent to a large number of devices in a global network each time it is updated. These copies provide verification for each transaction conducted, which means that blockchain transactions are practically impossible to falsify. Any attempt at creating a fraudulent transaction record would be easy to disprove hundreds or thousands of times over.

The security of blockchain alone should appeal to small businesses, which typically need to be wary of credit card fraud and other such hazards of doing business with the public. However, there’s another aspect of blockchain that should make it even more attractive: transactions can be made completely anonymous. Customers prefer anonymity because it prevents their data from being mined and farmed when they shop for products and services online. However, small businesses can also reap surprising benefits from this anonymity—after all, you can’t accept returns from cranky customers or issue refunds when you don’t know who they are.

Accepting Specific Cryptos on Your eCommerce Site

Blockchain is the technology behind cryptocurrencies, but it’s important to realize that many different types of crypto exist. These types, as well as the individual units that make them up, are called “tokens”. Bitcoin is the world’s first (and, at the time of this writing, most popular) token, with more than 10 million estimated users. That’s not a huge number right now, but it is projected to grow by as much as five times within the next three years.

It’s easy to see why, too: new services allowing users to easily buy Bitcoin online using their bank accounts and growing media attention will all but ensure that the number of users climbs steadily, even when the market fluctuates. As such, it is reasonable to assume that there will soon be an increased demand for products and services these users can purchase with their Bitcoins. Ethereum, Litecoin and other prominent cryptos will likely be the subjects of similar interests. The implication for business owners should be clear: the sooner you start accepting payment in cryptos, the more of this emerging market you’ll be able to corner before the competition does.

Cryptocurrencies have the potential to make savvy users and traders a lot of profit, and the same holds true of businesses that accept them. However, like any emerging commodity it pays to do your research before jumping headlong into the market. Learn more about how token value is determined, which cryptos are most secure, and what the future might hold for Bitcoin. Then make a decision that you can be confident in, and lead your business towards greater success in the digital world.