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As momentum with cryptocurrencies keeps building, more large corporations and small businesses alike are recognising the global potential and reach available. It is estimated that over 300,000 Bitcoin wallets are downloaded per month and this number is predicted to keep growing!
Companies from Microsoft to Lush, Tesla to Starbucks are now seeing the benefits available to accepting cryptocurrencies. It is not just the global reach that makes cryptocurrencies beneficial to both the company and the customer, there are myriad of other advantages too.
For example, user autonomy; you do not have to deal with an intermediary authority, such as a bank or government. Using cryptocurrencies as a method of payment allows user autonomy as you are not relying on an intermediary such as a bank or government. As there is no intermediary, you can eliminate costly bank fees. There is a standard amongst cryptocurrencies that you are charged possible ‘maker’ or ‘taker’ fees and occasional deposit and withdrawal fees, but cryptocurrency users are not subject to the various traditional banking fees associated with other forms of currency. For example, there are no overdraft charges, maintenance, or minimum balance fees, among others.
“UK businesses lost £6.2 million to cyber scams…”
securitymagazine.com (2020)
It was reported that there was a 31% increase in cybercrime during the pandemic and UK businesses lost £6.2 million to cyber scams. This isn’t a surprise considering the closure of non-essential retail shops led many to shop online and, therefore, increased the amount of personal data being shared. Cryptocurrency transactions carry a lower risk of fraud than traditional forms of payment. There is an element of discretion with them, unless the user chooses to voluntarily publish this information, their transactions are never associated with their identity. This is because with each purchase a unique address is generated which changes with each transaction. It is also not mandatory for you to enter your personal details to complete the transaction, with debit or credit card transactions, a plethora of personal information can be transferred to companies. In contrast, cryptocurrencies – although not entirely untraceable – are not as traceable as using a credit card for example.
Cryptocurrency is also a game-changer for those who frequently conduct international business because, not only do you eliminate the fees associated with standard wire transfers and foreign purchases, making it more economical, but you also eliminate the authorisation and wait periods. Coins such as Bitcoin, Dash, and Ethereum offer the user lightning-fast transactions across borders that can easily be converted to the native currency with minimal fees. This is great for companies to tap into a previously unexplored market. There is the risk of pricing fluctuations, the prices of cryptocurrencies are highly speculative due to the factors that drive value. Many merchant wallets now convert coins automatically to mitigate the effects of a flash crash. A ‘flash crash’ is how we refer to an event in the electronic securities market wherein the withdrawal of stock orders amplifies price declines and then quickly recovers. In some cases, these precautions may not be enough, and companies will have to sit on their coins until the coin returns to its original value, but there is also the risk it won’t.
Investment Mastery is now proud to list itself amongst the companies that will offer cryptocurrency as a form of payment for goods and services.
We have always said that cryptocurrencies will replace parts of the monetary system and, as a company, we are proud to not only teach people and change their lives but adopt these practices ourselves.
