Successful new technology undergoes a massive growth in which we try to use it for everything. Email, search, social networking—each passed through this phase. It took time before we figured out what its best applications and limitations were.
You might be familiar with terms like Litecoin (LTC), Ethereum (ETH), Bitcoin, Zcash (ZEC), Ripple (XRP), Monero (XMR) and Ether. They use Blockchain Technology to keep this currency and technology safe.
Over the last couple of years, the name cryptocurrency has been rapidly expanding. At first, it seemed unknown and somewhat scary like the credit card looked to users in its early days.
A blockchain is a protected distributed ledger—which protects you or anyone else from making a copy of that Bitcoin you bought. Some of these ideas are prominent, while others are ludicrous.
Immediate Settlement: Purchasing real property usually involves third parties (Lawyers, Notary), delays, and payment of fees. The bitcoin/cryptocurrency blockchain is a “large property rights database,” says Gallippi.
Lower Fees: BitCoins don’t have a transaction fee. But most users will still engage a third-party service, such as Coinbase to create and maintain their bitcoin wallets
Identity Theft: When you give your credit card to a merchant, you give him or her access, even if the transaction is for a small amount. Credit cards operate on a “pull” basis, where the store initiates the payment and pulls the designated amount from your account.
Access to Everyone: There are approximately 2.2 billion individuals with access to the Internet or mobile phones who don’t currently have access to the traditional exchange.
It is worth noting, of course, that governments which already restrict internet access (like China) can and have worked to shut down ICOs (initial coin offerings) and peer-to-peer trading of altcoins. Other governments like Russia and the United States are talking about increasing regulations on these cryptocurrencies. There may be more restrictions on coin ownership. Those who choose to invest their business’s wealth in this manner should be aware of changing legal implications.
In forthcoming years, the motto of fintech developers is going to be “ crypto coins for everything!” Initial Coin Offerings (ICOs), which introduce new cryptocurrencies to the world, has raised $4 billion so far, the currency remains improbable.
Initial Coin Offerings (ICOs) started out as an alternative means for funding new protocols and infrastructure in the crypto universe. Through this process, companies create and sell tokens. The tokens could be hoarded as investments or used to accomplish tasks on their platform.
Bitcoin enthusiasts often point at 2013, when the government of Cypress decided that to stabilize their budgets, they would repossess some of the investments made by businesses and individuals throughout the country. The very nature of Bitcoin makes that impossible. Without both the private and public keys to accounts, there is no way to access a Bitcoin account. This could be considered a more secure way for businesses to hold their wealth.
Bitcoin can ultimately purchase by anyone who has an internet connection and a fiat currency to trade for the digital coins. In many countries where the fiat currency is notoriously unstable, residents are becoming more and more interested in altcoins.
Even when used domestically, cryptocurrencies have lower overall fees than other digital funding sources. Many brick and mortar stores are familiar with the various credit card fees charged, even on minimum purchases. When accepting or sending Bitcoins and other altcoins, there are no transaction fees; the currency is very much like cash in this way.
That said, converting the currency into a fiat currency can have fees; so can a digital wallet that holds your coins.
New Market Niches
It’s not every day that a company gets the chance to connect with an entirely new niche in their market. Bitcoins have not yet seen widespread adoption, so companies that accept them are more likely to get business from those who want to use them as their primary currency. While investing in Bitcoins can be risky due to price fluctuations, developing regulations, and more, companies that take the risk of the new money may see unique benefits.
When digital currencies like Bitcoin first became financial players, they gained a sinister reputation. As the preferred monetary medium for ransomware creators and terrorists, cryptocurrencies came to the attention of markets and governments in a very negative light.
Since then, however, the currency has gained more legitimacy. Businesses are beginning to accept Bitcoin and other altcoins, and more small companies are looking at cryptocurrency as currency, not just an investment or commodity. There are definite benefits to choose to accept altcoins at your small business.
Cryptocurrency is rapidly emerging from high tech obscurity and becoming mainstream.
While new, cryptocurrencies are solidly rooted and here to stay.
Over 100,000 businesses, already use this money in everyday transactions. Giants like Amazon and Tesla, have begun accepting as well. Numbers more are happening their lead every day.