The opportunities that opened up to crypto have increased now that it has become more popular. One of the benefits that came along with the popularity of crypto is that businesses are now starting to accept it as a payment method. Unlike before, when it was only used in peer-to-peer transactions and was almost limited, now its exposure has gone over the roof.
If you have recently invested or started trading with crypto, or it’s been quite a while since you started, you are in luck. Some of the top-performing cryptos today have recently increased in market value, which means that there’s a chance for you to increase your profit.
So, in this article, we will go over several reputable businesses that have started to accept crypto as payment and the advantages and disadvantages it brings to a business.
Microsoft is a well-known company that started to accept Bitcoin as payment. We know that Microsoft is one of the biggest software companies worldwide. With the company accepting crypto, it increases the company’s confidence which also goes to show how accepting they are when it comes to cryptocurrency.
Microsoft is not only accepting crypto, but with the use of the blockchain, they have developed ION, an authentication platform found on the Bitcoin network. With the use of this technology, it can create identification cards to authenticate online identities. This also gives their users more protection regarding their identities.
Tesla is one of the most popular companies that have a good relationship with Bitcoin. Tesla’s carmaker, Elon Musk, is one of the most popular people who heavily influences Bitcoin and its investors. Tesla recently announced that the company would soon start to accept Bitcoin as payment for people who purchase a vehicle.
There have been many reports that Amazon will begin their groundwork to produce its exclusive crypto. Although the company hasn’t started crypto yet, there is a platform that allows users who use cryptocurrencies to buy Amazon vouchers. They can convert their Bitcoin into several gift cards and many more through this platform.
Using a digital wallet called the Bakkt app, users can use this wallet to pay for goods and beverages at Starbucks using converted Bitcoin. Starbucks is one of the most popular coffee chains worldwide, and their acceptance of crypto for payment gives people more opportunities to use their crypto.
Paypal, so far, is probably one of the best companies that offer users a wide variety of things they could do with their crypto. PayPal allows users to buy, sell, and keep various cryptos, including the top-performing cryptos such as Bitcoin and Ethereum. One of the notable features while using the PayPal app is the ability to track and monitor different cryptocurrencies.
Accepting Crypto as Payment
No doubt, crypto has become even more popular in recent years, and since many people started investing in it, the exposure of crypto has reached many people around the globe. Its popularity is not the only reason businesses have started to accept crypto as a form of payment, as there are many other reasons why it can be used to an advantage.
One of the many advantages of accepting crypto in exchange for goods and services is that all transactions are irreversible. Meaning, that once a buyer’s crypto payment goes through, it stays there permanently.
Crypto as a payment method can be good for business owners since it improves their cash flow now that crypto users are increasing, and at the same time, owners can easily manage the cash flow.
Secondly, business owners who accept crypto in exchange for their goods will be able to have lower fees whenever they are transacting with other parties. Transaction fees are significantly lower in cryptocurrency than in other traditional payment modes. In addition, if you as a business owner transact with other customers from overseas using crypto, you will not be paying a huge fee.
Once you see the numerous advantages of using crypto as a modern, cutting-edge payment method and wish to obtain some, it’s important to do it correctly. Most experts recommend a tried-and-tested crypto platform like Immediate Edge.
As good as cryptocurrency sounds, unfortunately, some things could still hinder the result of crypto. One of the drawbacks of businesses accepting crypto as payment is since the payment for transactions is irreversible, the process of refunding could be difficult for the business owners.
Customers who want a refund could cause the business operations to become inefficient. Added to that, for customers who want a refund on the holidays, you and your employees would have to put more into the refund process as you will need more help returning the payments.
Also, the talk about crypto regulations might soon be implemented. Among the crypto regulations come the possibilities of tax regulations, which could mean businesses have to declare their income.
In other words, each time a business owner sells, buys or uses crypto, they are liable to a capital gain tax. Not to mention, you as a business owner must keep track of all the values of different cryptocurrencies on the day you receive the crypto and when you sell crypto. The whole process could become hectic and might affect how you handle your business when you start accepting crypto.
Also read: Bitcoin in Real Estate 101
In summary: Is It Worth The Risk?
Cryptocurrency has many advantages that many users can benefit from, and despite all the risks involved, they still keep investing. If you are not aware yet, cryptocurrency is decentralised, which is one of the many reasons people love crypto. No government or bank could take control of crypto, which comes as a benefit and a risk simultaneously.
Cryptocurrency is like any other investment with risks; however, since cryptocurrency is slowly shaping traditional finance, who knows how cryptocurrency can further progress in the upcoming years?
Using a good crypto platform is always a good idea if you want to start investing or trading with cryptocurrency. If you are new, you can learn all the basics and improve your ways and potentially generate more income.