We can’t deny that cryptocurrencies have become very popular in the last few years, and many people have begun to consider digital coins instead of fiat money. We have witnessed massive changes in the Bitcoin price chart, and the first digital currency dragged all the other altcoins along. Also, there have been changes in the way people perceive cryptocurrencies, as they have learned more information than ever about digital assets and have discovered the best ways to earn a profit with their help. Things moved so quickly that several businesses started integrating crypto payments into their companies. KFC, Microsoft, Norwegian Air, Burger King and Twitch are a few enterprises that have adopted cryptocurrencies as payment methods due to the increasing popularity of digital assets.
And because cryptocurrencies are getting more and more closer to mainstream adoption, business owners have begun to wonder whether they should join the crypto movement. After all, this is a justified question, as several big players have taken the leap.
While it is clear that cryptocurrencies are here to stay, businesses should review many things before they accept crypto payments. They have to look at the pros and cons and decide if crypto payments are a good option for them.
Here are the pros and cons of crypto payments.
The pros
There are various pros businesses will have if they integrate cryptocurrencies as payment options. Here are the most important ones.
Quick transactions
Banks slow down the payment process, and businesses need to wait long days until their funds become available. Business owners know how important and valuable time is, so they want to discover new alternatives that will optimize their time and not slow them down. Fortunately, cryptocurrencies have helped in this matter, as transactions with digital assets happen in a matter of minutes or in real time. High transaction speed is a great advantage for today’s world, as everyone wants to receive things as soon as possible, especially when we are talking about transactions.
Cost-effectiveness
Over the years, people have paid enormous sums of money for their fees. For example, the US merchants alone have spent over $78 billion. But, things are not like this with cryptocurrencies, as they are decentralized and enable transactions without relying on other parties, like banks. So, business owners won’t need to pay those fees anymore, and they will be able to save from 2 to 5 % of each transaction.
Increased security
Because cryptocurrencies are created on blockchain technology, digital coin payments will always be more secure, as the transactions are permanent and unmodifiable. By adopting cryptocurrencies as payment methods, clients will see that businesses care about their security and put them in the first place. Cryptocurrencies are ideal payment options when it comes to safety. They are not exposed to the same risks because their value is detached from the traditional payment system. It is pretty hard for hackers to attack a decentralized exchange, so businesses can have a better time knowing that nothing bad is going to happen to them.
Access to global markets
Cryptos simplify the purchase of products and services both locally and internationally. They improve access to global markets, as payment is much easier. In the traditional financial system, it is much harder for businesses to expand, but that is not the case with crypto payments. With digital assets, transactions are safer even outside the countries’ boundaries. Also, expanding into a global market will increase revenues and even the number of customers.
Cryptocurrencies have a large fanbase, so people will always want to buy products from companies that enable crypto payment. Enterprises could benefit from more clients by accepting the crypto payment into their operations.
The cons
Things have sounded good so far, haven’t they? Yes, cryptocurrency payments have plenty of advantages, but business owners must also consider the cons to ensure they make the best decisions for their companies.
Volatility
Cryptocurrencies are volatile assets, as their price can rise or drop at any time. Because their value changes constantly, cryptocurrencies are unpredictable, and this aspect stands for each crypto, whether it is about Bitcoin or other altcoins. This is why investors can encounter losses, as the crypto prices can change without any warning.
Technical difficulties
Accepting cryptocurrencies as payment methods also brings technical difficulties business owners will need to go through. It might be true that cryptocurrencies are not rocket science, but those who are not familiar with the technology behind the complex digital assets will have a challenging time integrating cryptos into their operations.
Lack of clarity regarding crypto regulations
The lack of clarity of crypto regulations makes people doubt whether they should integrate crypto payment options into their business. The crypto sector is no longer the Wild West that was some years ago, but governments still face many challenges with these innovative assets. Today, governments are still struggling to develop some regulatory framework for them. Around the world, the perspectives on cryptocurrencies are different. Some countries have accepted them, while others have banned all activities related to virtual coins. So, no one knows for sure how the future of cryptos will look and in which category they will fit.
The uncertainty about cryptocurrencies makes business owners fear integrating crypto payments as they wonder if the efforts will pay off.
Final words
Plenty of companies have started to accept crypto payments, as this trend is constantly evolving around the world. Still, each company needs to balance the advantages and disadvantages to ensure they will make the best decision and not regret the choice later.
Cryptocurrencies are highly volatile, but many businesses still opt for them, as they bring several other benefits that can’t be overlooked. Thus, digital assets still represent a good option for companies that want to expand internationally and grow their number of customers.
