Over the years, the use of cryptocurrency has its fair share of controversies and challenges.
Despite its cycle of rising and falling, it sure looks like cryptocurrency is here to stay. This is evidenced by the fact that more and more businesses are accepting cryptocurrencies as a form of payment for goods and services.
Today, we’ll talk about cryptocurrencies and why more and more businesses are accepting them for payment.
What is Cryptocurrency?
Before we proceed, let’s first discuss what is cryptocurrency.
Cryptocurrency is essentially the digital way to hold and transfer value through the world wide web. What makes cryptocurrency different is that it’s not controlled by any particular person or bank. You can purchase cryptocurrency coins or tokens via the Internet using a credit card or any other legal tender.
Cryptocurrency value can rise and fall depending on the supply and demand. The most well-known cryptocurrencies are Bitcoin and Ethereum. The amount of cryptocurrency available is usually fixed at any given time. Therefore, if more people are using cryptocurrencies, the higher their value.
Why are More Businesses Accepting Cryptocurrency?
While prices of cryptocurrency won’t reclaim its 2017 highs, many experts think that the price could rebound sooner than expected. With that said, more businesses will start accepting digital payments for goods and services.
Why is that the case?
1. Reduced Transaction Fees
One of the most obvious bottom-line benefits of accepting crypto in a business is the lack of direct processing fees. Unlike credit card transactions where banks charge a fee, transactions using cryptocurrency have no third-party involvement.
Cryptocurrency is not controlled or developed by a single entity but instead, it works directly through the blockchain technology.
2. Faster Form of Payment
It can take several days for credit card payments to clear. The same can’t be said with cryptocurrency transactions because the transfer of value happens almost immediately. As a result, you can access the coins or tokens in a matter of minutes.
It’s also worth noting that all cryptocurrency sales are considered final. This adds a layer of financial security for your business.
3. Better Customer Access
With the continued popularity of cryptocurrency, more consumers are becoming more interested in coin payment options.
Should you choose to accept cryptocurrency as a form of payment, you are essentially increasing your potential buyers. Since crypto is not regulated by the government, this currency by definition is international. This potentially opens up your business to a global clientele.
4. Protection from Fraud
As mentioned, all cryptocurrency sales are final. This is because all transactions added to the blockchain through mining.
This particular system verifies the funds and it becomes impossible to spend more than you own. Also, both parties’ approval is needed to finalize the transaction. This system protects both the merchant and buyer from potential fraud.
Is Cryptocurrency Still a Big Deal?
While the Bitcoin bubble of 2017 did burst, it is still widely used. Over time, more cryptocurrencies are being widely accepted by establishments. Don’t be surprised when even a luxury auto body shop is accepting cryptocurrency nowadays. Luxury brands all over the world have begun accepting bitcoin as a trade for goods, which is monumental.
Trust your car with the professionals at San Diego Auto Body & Paint. With cryptocurrency gaining popularity at establishments, transactions have never been faster, providing you with better customer service. Contact us with any questions you may have about our services. Schedule your appointment today!