Industry insiders like Dan Schatt and others are closely watching the rise of Bitcoin and other cryptocurrencies as they believe that it will change how we do business. These experts have outlined seven ways that they believe Bitcoin and other cryptocurrencies will change how we do business.
Some of the ways include:
1) Making global payments easier and faster
Bitcoin allows for quick and easy cross-border payments with no third-party interference. This makes it an ideal payment solution for businesses that frequently conduct transactions with suppliers and customers in other countries. The globalization of our economy means that this is an important issue for many businesses, and cryptocurrency-based payment systems, like Bitcoin, are making it easier than ever before.
2) Lowering transaction costs
Traditional payments options typically charge high fees to the purchaser or receiver of funds as revenue for facilitating transactions. However, cryptocurrencies have been designed with lower transaction costs from the ground up, making them a more attractive option for businesses. In most cases, they can be used without incurring any additional charges beyond the cost of sending and receiving the currency itself.
3) Eliminating costly chargebacks
Chargebacks account for billions of dollars in losses that merchants face every year due to false claims by customers unhappy with their purchase that result in a money-back guarantee return by their credit card provider. Bitcoin transactions are final and irreversible once they occur, offering merchants protection from these costly chargeback fees that routinely amount to a percentage of the sale.
4) Increasing access to global markets
Due to stringent regulations concerning ICOs and cryptocurrency exchanges, many entrepreneurs have limited access to cryptocurrency-based investment opportunities. However, this is changing as more governments worldwide begin to relax their stances and create favorable regulatory environments for blockchain projects. For example, Estonia has already created a countrywide initiative to encourage cryptocurrency startups to relocate, thereby offering them digital residency status. This will allow them the same benefits as their physical counterparts with easier visa applications and lower tax rates.
5) Offering low-cost business loans
Businesses that need to borrow money often turn to traditional lending institutions such as banks or credit unions. However, these institutions often charge high-interest rates and fees for their services. Cryptocurrencies can provide an alternate solution for businesses in blockchain-based loans. These loans are issued by lenders who use cryptocurrency as collateral, and the terms are often more favorable than those offered by traditional financial institutions.
6) Facilitating online micro-transactions
Micro-transactions, or transactions worth a few cents or less, have traditionally been difficult to execute due to the high costs of processing them. However, Bitcoin and other cryptocurrencies offer an attractive alternative thanks to their low transaction fees and fast processing times. This could make it possible for businesses to monetize previously unprofitable content, allowing them to monetize users more effectively.
7) Disrupting social media advertising models
Influencer marketing is big business, with many of today’s leading celebrities and public figures relying on the revenue gained from sponsored posts on social networking sites like Instagram or Twitter. Cryptocurrencies offer a way for advertisers to get their message in front of consumers without having to pay high fees associated with traditional advertising platforms. Instead, advertisers can use low-fee cryptocurrency transactions to send their promotional material straight into the hands of their intended audience.