Cryptocurrency is an innovation that is advertised as the future of payment. And while this may be true, it is confronted with its challenges. As more people get to know and learn about cryptocurrency, it will become more of a means of exchange and less of a store of value. In this article, we are going to explore the pros and cons of accepting cryptocurrency in your business.
Pros
Increased customer base
One of the advantages of accepting cryptocurrency in your business is that you are likely to win new customers. Whether you are running a restaurant, bar, supplies store, or online business, your business is more likely to catch the interests of individuals who you might call tech-savvy. These types of individuals are always looking for new inventions and will want to support your business once they know that you are accepting cryptocurrency payments.
It will build your business reputation
Your business reputation can be boosted by accepting cryptocurrency. You will be viewed as a progressive business that uses new technology. Since your business is offering its customers a faster and more secure method of paying for goods and services, is likely to win their trust and build a solid reputation.
Lower transaction fees
Cryptocurrency payments offer lower transaction fees for both merchant and customer unlike payment gateways like PayPal. However, transaction fees depend on whether you are receiving payment through a third-party payment processor like Coinbase or into a personal crypto wallet. Regardless of where the payment ends up, the transaction fees are way lesser than credit card payment or other payment services.
Faster transactions
Cryptocurrency payments are processed faster than other payment services and card payments. This is because cryptocurrency payments are highly secure and do not need multiple layers of checks, unlike card payments. Cryptocurrency payments take the same time to complete regardless of where you are in the world.
Secure transactions
Since cryptocurrency is backed by blockchain technology, which is a highly secure database network, it offers a higher level of security. Another advantage that cryptocurrency payments offer in terms of security is that transactions cannot be reversed once they are completed. It will take the consent of the merchant to effect a reversal, which assures protection against payment fraud. Visit satoshipoint.io to learn about Bitcoin ATMs.
Cons
It is volatile
If you are planning to accept cryptocurrency payments in your business, you must brace yourself for the impact of the extremely volatile crypto market. We have witnessed several surges and plunges in prices of digital currencies over the years, and that is not likely to change anytime soon. Your business might take a hit from a price plunge that will affect your revenue.
It is still only a store of value
While it may appear as though more businesses are starting to accept cryptocurrency payments, it is still largely a store of value. Many users of digital currencies are only investing in crypto to trade and make a profit, which also explains why the market remains volatile.
The world is yet to catch on
Accepting cryptocurrency in your business may seem like the progressive thing to do, but the problem is that the majority of the world populace is yet to understand how it works. This is still a huge problem for cryptocurrencies – many people are still having a hard time understanding the technicalities involved.