One of the most interesting developments in recent times has been the advent of cryptocurrency. Cryptocurrencies are digital currencies you can use to make payments without using a bank or other financial institution. These currencies rely on blockchain technology, and the total market value of cryptocurrencies rose above $2 trillion. Even when the Covid-19 pandemic struck the world and the financial industry took a heavy blow, cryptocurrencies not only persisted but also grew significantly. It may seem like a passing fad to some, but the technology behind it could very well change how businesses operate in the future. With cryptocurrency and blockchain technology becoming increasingly mainstream, and virtual space is becoming more accessible for consumers, it's important for businesses to prepare themselves for what may be coming down the line. Here are a few benefits of using cryptocurrency for businesses.
Key benefits of using Cryptocurrency for businesses
A Viable Form of Payment, with no middle-man
For big enterprises, handling payroll for their employees in different parts of the world can be a massive hassle as a cross-border transaction fee and other factors come into play. Cryptocurrencies are decentralized and distributed, meaning they can't be shut down. They also eliminate the need for a middleman or third party to facilitate transactions. This means more business opportunities, fewer fees, faster transaction times, and more importantly greater cost savings- all things that will make your company stronger in the long run.
Improves Accessibility to Funds
Cryptocurrencies are relatively easy to store, much easier than cash. They're also more secure with less risk of being stolen. Cryptocurrency can be stored on a digital wallet that you control and is accessible from any computer or phone anywhere in the world. Cryptocurrencies can also be exchanged for other cryptocurrencies or fiat currency, so there are more potential profits for businesses to make. Thus, cryptocurrency could enable access to new asset classes as well as new capital and liquidity pools through traditional investments that have been tokenized.
Opens More Business Opportunities
Cryptocurrencies have generally minimal-to-no fees for transactions, which means they're great for micropayments. Cryptocurrency can be transferred anywhere in the world for a fraction of what you would pay using credit cards or wire transfers, which is great news for businesses, especially for small businesses looking to take payments online. As more and more people are using cryptocurrencies as a form of payment all over the world, this can help you expand your business opportunities in other countries. This is one of the biggest benefits of cryptocurrency for businesses. Moreover a Study confirmed merchants that accept Bitcoin attract new customers and sales.
Cryptocurrencies are more secure and fraud-resistant than traditional currencies - this means less hassle with chargebacks and customer service issues that come with traditional currencies. Unlike other digital payment methods where the government and businesses can track the users’ movement on the world wide web, consumers or the parties involved in a crypto transaction need not have to reveal their identities, enhancing security and confidentiality. Cryptocurrency transactions are also irreversible, meaning your customers won't be able to dispute a transaction after it's been completed the way they can with credit card purchases.
Transparent Capital Raising
Blockchain, the underlying technology for cryptos, can enable businesses to tap into a more efficient way of raising capital through a process called Security token offerings, or STO that allows you to offer tokenized securities that represent equity or debt in your company. STOs are similar to Initial Coin Offerings, ICOs in which instead of raising money through cryptocurrency, STOs raise funds by selling digital security tokens (similar to shares) on an open marketplace like token exchanges. STOs are similar to ICOs in many ways but offer more regulation and protection for investors. STOs also provide increased liquidity for the tokens issued because they can be traded on exchanges like any other cryptocurrency or traditional security. They are currently being applied in a number of industries, including real estate and art.
Cryptocurrencies have already disrupted many industries including finance, retail, healthcare, and more, and will continue to do so as they become more widely used. So, as the Cryptocurrency and blockchain industry continues to grow, it's important that businesses are able to prepare themselves for this new world. However, the use of blockchain technology and cryptocurrency for businesses presents a host of opportunities and challenges. As a pioneer in next-gen blockchain technology, RubiX Network partners with businesses to equip them with the blockchain solutions needed to face the crypto future. We, at RubiX, have invented the Proof of Harvest (PoH) Consensus Mechanism to make blockchain carbon-friendly and more sustainable. It is a 100% Carbon-free technology that allows asynchronous parallelism to facilitate real-world decentralized applications. This Proofchain architecture enables enterprises to build highly scalable, secure, decentralized applications with built-in privacy. The recent study evaluated the energy consumption of a single Ethereum transaction at 143 kWh compared to just 0,174 kWh that it takes to power 100,000 transactions on the RubiX blockchain. It is time to make a sustainable choice!
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