Cryptocurrency in Small Businesses



0 Comment

Along with the worldwide economic progress of 2018 is the growth and development of cryptocurrencies. Introduced by BitCoin, Ethereum, Ripple, LiteCoin, and a lot more others, Cryptocurrency Price prediction is the newest way to invest, pay, and purchase.

Cryptocurrency is used as investment tokens in the foreign stock exchange market. It promotes easy trading and fast money, so a lot of people have been encouraged to use it and play on international trade. Today, the cryptocurrency system is being developed as a system for paying hospital bills online. It can now also be used as tokens to pay partial installments for real estate properties.

Cryptocurrencies, according to economic analysts, have the capability to equate currencies in the near future and can be used as an international legal tender.

In this article, we’ll give you points on how cryptocurrency can affect the micro economy, small businesses, for this matter.

Pros

Transaction

Small business owners may use cryptocurrencies for investing original capital and paying utility bills. Cryptocurrencies promote faster transactions and less personal appearance in counters. Using them as remittance and payment money can also cut off costs since they require no processing fees at all. Also, by using cryptocurrencies, small businesses get to avoid paying taxes.

Convenience

The convenience of using cryptocurrencies is undeniable, most especially if the user is out of the country, short of cash, or out of funding. Cryptocurrencies can also be used as a portal to borrow money or buy stocks from other traders. They can give you the advantage of having your money with you in a virtual form.

This may help when you’re out of the country since cryptocurrency money doesn’t recognize tenders. It only has one intrinsic value anywhere you may go.

Money Value

Like what was mentioned earlier, cryptocurrencies have one intrinsic value, meaning it may be affected by inflation and deflation rates but its value is still the same international. For instance, if you’re currently in Asia and that country is suffering from a depressive economy, your money value won’t be affected since it has a true money value. This can help in the faster growth of SMEs and other small businesses.

Cons

Currency Regulations

Unlike legal tenders, cryptocurrencies lack an economic regulatory board. It becomes technically unfair for other businesses that don’t use cryptocurrencies since they still get to pay income taxes and other processing fees monthly. This may cause social chaos and economic depression.

Price Volatility

Cryptocurrencies are vulnerable to inflation trends most likely because they are produced by foreign exchange trading and stock gambling. This could mean that as much as your money has a chance of multiplying, it could also be reduced and decreased without prior notice.

Conclusion

In conclusion, small businesses may hold accounts in cryptocurrencies, but they also have to maintain a generous amount of cash on hand and in a bank. Cryptocurrency may serve as an investment for small businesses, but it can’t be advisable to fully rely on such when it comes to bills payment and supply purchases.

Leave a Reply

Your email address will not be published. Required fields are marked *