Many people have borne the standard payment systems’ weaknesses for far too long because of a lack of a better alternative. Ever wondered why Bitcoin was created? The concept of Bitcoin came to address the many challenges people have while using traditional methods. For example, transacting through the traditional consumes a lot of time and money. As you know, in the world of business, time wastage is a risk that may hinder business expansion and even lead to its closure. Therefore, the appearance of Bitcoin has transformed the business landscape in multiple ways that can spur the growth of many enterprises.
In the last few years, Bitcoin has recorded tremendous growth, growing to be the most reputable digital currency of all time. The popularity of digital currencies and bitcoin is attributed to the technology it has in place.
Blockchain technology is a life-time invention that has changed the world in a way you would never have thought. With the decentralised blockchain system, there is yet more to come.
Many people view bitcoin and cryptocurrency as a technology of the future. However, its impacts are apparent even at the moment. Bitcoin and its supporting infrastructure, blockchain, are transforming how we store money, conduct business, or pay for goods and services. Besides, there are many more ways that Bitcoin has made the world a better place. Let’s have a look at the impact of Bitcoin on business:
Crowdfunding is a capital sourcing method obtained using small investment amounts from many individuals to finance new businesses. Organisations with fantastic goods, services, and ideas can raise funds from the public in small quantities. The existence of crowdfunding gives life to new ideas, products, and services. However, the technique has not been beneficial simply because a central authority controls it. For that reason, you have to pay attention to campaigns that the crowdfunding platforms world deems worthy of the public’s support.
Cryptocurrencies will never stop evolving. Initial exchange offering (IEO) is one of the most recent inventions that might disrupt how new businesses raise capital through token sales. With IEOs, new investors are confident that their investments go into worthwhile projects. The new system allows for tokens to be sent to a relevant exchange and a counterparty to avail them to available investors.
The conditions and prices for the sale are agreed upon by the developer and the platform. In a nutshell, this agreement entails the percentage of tokens the platform holds for sale, the tokens’ flat price, and the number of tokens kept for the development team.
With bitcoin and blockchain technology, there is a new era of crowdfunding on the horizon. Blockchain technology has brought the democratisation of capital for new businesses. Despite minor setbacks, bitcoin-based start-up financing is making major comebacks for the better.
You wouldn’t be wrong to assume that machine learning technology is a replacement for the human resource department. However, there’s a lot needed to hire, compensate and terminate employees.
The human resource management community believes that bitcoin and the blockchain are modernising the hiring process, making it easier for human resources to evaluate candidates and available staff faster. Concerns of outsiders interfering with inaccurate data on job candidates will be a thing of the past.
Without emails, stacks of paper, or phone calls, your organisation can authorise and bring in the right talent at each step in the hiring process, with activities moving transparently and automatically around the chain. Blockchain is also going to impact payrolls for multinational corporations or business organisations with foreign employees. The technology can comfortably handle back-end work to standardise payments in different currencies.
Changes in the money transfer process
For the longest time, we have depended upon cash, wires, and bank-to-bank transfers. The money transfer techniques are efficient but still have a long way to go. It is sad to note that some transfers can take longer than a week to clear and be deposited.
Bitcoin transfer doesn’t require a regular check and balance process required by banks and other money transfer mediums for deposited funds. Whether you’re operating your business within the country or internationally, bitcoin transfers are fast and don’t charge fees. Transactions can be safely stored in the blockchain and easily tracked. Bitcoin has eliminated the need to rely on intermediaries to approve transactions between users, speeding up payments at lower rates than other money transfer mediums.
Strengthening the E-commerce
We’re living in a world where everyone seems to make their purchases online. Ecommerce is a big deal in contemporary business, with an estimated $4.5 trillion worth of sales worldwide. Research predicts that 95% of household shopping in 2040 will happen online. There are various reasons for the upward trend, including more mobile-friendly websites, an increasing population of digitally native consumers, and improved user experience on different e-commerce platforms. In any case, there are still steps e-commerce retailers need to consider, including adopting Bitcoin as a means of payment.
Most businesses are slowly adopting blockchain rapidly, and it would not be easy to imagine a future that doesn’t embrace bitcoins and crypto as a means of payment. As more e-commerce retailers allow the use of digital tokens for payment and public awareness grows, the chance to try bitcoin will be ubiquitous.
Furthermore, Bitcoin transactions are immutable, reducing the fraud risk for you as the shopper and the vendors. Besides mitigating risk, bitcoin will create more avenues for business globally.
Promotes transparency and accountability
It is sad to note that companies and individuals out there follow illegal and corrupt business practices. Consumers want to ensure that they buy goods and services from businesses with integrity and those that follow the law. However, a word or a written document by an organisation or individual about their integrity may not convince many clients.
Fortunately, Bitcoin and blockchain technology keep organisations and individuals more accountable. Blockchain technology also provides relevant information to consumers about companies that sell to them.
All bitcoin transactions are traceable and stored in the blockchain network. As a business owner, you can keep proper records of your transactions without the fear of incurring extra charges.
It gives customers control over their money
When you trade-in Bitcoin currency, you have sole control over your money. Additionally, you have the autonomy of determining when to initiate transactions and how much you wish to send. However, this isn’t the case with the standard payment systems where third-parties, like banks, impose rules on how you transact. And a significant weakness with the standard payment methods is that they’re slow as banks must approve transactions.
Thanks to modern technologies like immediate bitcoin, you can conduct your transactions from anywhere at any time. You don’t require the approval of banks or any other third-party to complete your transactions.
Offers an alternative investment option
Although we have multiple standard investment options, they’ve many weaknesses. And one of them is being susceptible to inflation. For example, during challenging economic times, the Federal Reserve may develop policies designed to print more currencies. Sadly, this step leads to inflation, whose overall effect is to devalue your investments. This, however, isn’t the case with Bitcoin because its code stipulates that the maximum amount to mine is 21 million. Therefore, digital currency is the best hedge against inflationary pressures.
Marketing and advertisement
Marketing consumes a fair amount of money for any business. And this is the reason many businesses yearn for a system that can reduce promotions expenses. Bitcoin has an active community of supporters consisting of miners, traders and other users. This community’s objective is to ensure that the Bitcoin system succeeds; hence, it supports businesses that have adopted it. Therefore, payment through this platform catches the attention of this community that can ultimately support your business. Additionally, you can list your business on specific websites that support Bitcoin users.
Bitcoin is also a modern and innovative method of payment that has multiple perks. Clients, especially, the millennial’s, are likely to choose a business that approves such a payment mode. Therefore, when you list Bitcoin as one of your payment methods, you give your venture a plus.
Emergence of crypto-banks
Through blockchain technology, there is a new way of lending and borrowing money. Crypto-banks capitalise on blockchain’s essential features, including safety, confidentiality, and transparency, to deliver this new type of banking. Via the decentralisation component, crypto-banks can administer loans by directly connecting users and borrowers. If the borrower has a perfect credit record, they stand a good chance of accessing credit. Compared to mainstream banking, where borrowers might spend a lot of money processing loans, the crypto-banks is quick and hassle-free. With the inclusion of AI technology, crypto-banking technology can now deliver services objectively without the influence of human biases. The crypto market is currently witnessing a consistent growth of the Crypto-banks, and notable entities include Galaxy Digital LP and Datarious.
The financial sector is witnessing a transformation in the form of Bitcoin technology. Digital currencies change the way people do business by providing prompt payment solutions and offering additional investment opportunities. Any forward-looking business should embrace Bitcoin technology to reap its multiple perks, as enumerated here.
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision.