Can Cryptocurrencies as a Payment Method Help Businesses?
As cryptocurrencies keep getting more and more integrated into the world's financial markets, more businesses consistently keep accepting cryptocurrencies as a method of payment. Some of the world's leading companies like Microsoft, Tesla, Paypal all accept Bitcoin as a method of payment. Xbt Usd payments keep getting adopted by global companies, so the fact that cryptocurrencies as a whole may be accepted as a form of payment in businesses does not seem like a distant dream.
One of the main pros for clients when it comes to businesses adopting Xbt Usd transactions to accept payments is the authenticity and transparency this method of payment offers. This will also help companies to establish themselves, sooner, rather than later in a crucial developing area that will most likely incorporate CBDC (Central Bank Digital Currencies). Another great aspect if a business accepts cryptocurrencies is the fact that a client can make his payment with no questions asked, since at the end of a day, it is a decentralized method of payment. If you are making a large purchase and pay with crypto, in 90% of the cases, there is no need to explain and break down the source of your funds. That is a crucial aspect of the overall success of cryptocurrencies as a whole.
Another very important aspect of cryptocurrencies being more commonly used as a payment method is the fact that some crypto brokerage companies are starting to provide their clients with crypto debit and credit cards. So essentially, you are provided with a card that is directly connected to your crypto wallet and you can make day to day purchases with your crypto via that cryp debit card. The most common type of cards are Xbt to USD cards.
So far, people and businesses are only calling out one pretty significant flaw when it comes to accepting payments in cryptocurrencies. It is felt on both the buyers and sellers side, depending on the situation. Due to the highly volatile nature of cryptocurrencies, you you may pay for something in a cryptocurrency that is equivalent to $20, but in thirty minutes that $20 crypto purchase may now be valued at $40 due to the volatile tendency of cryptocurrencies. Now imagine something like this happening on a MUCH larger scale. For example, say you want to buy a Tesla and you pay in Bitcoin. Imagine that your total for the car is $80,000 and you pay in Bitcoin. Can you imagine your reaction waking up the next day seeing that Bitcoin went from $50,000 for 1 all the way to $80,000 for one? At the time the card would have roughly cost you a Bitcoin and a half, but 24 hours later you realize that you overpaid and you should have simply waited!
Most businesses can have serious financial losses if they are not careful when they authorize payments in cryptocurrencies. Above we mentioned a scenario on the buyers side, but now imagine a seller losing his profit margin if the market prices decline. Imagine a Tesla dealership selling a car for $80,000- or an equivalent of roughly 1.5 Bitcoin. Keep in mind that they have dealerships all over the country and they are most likely selling hundreds a day. Now imagine, the next day the financial department of Tesla takes a look at the Bitcoin price and see that the Bitcoin price has fallen down to $30,000 for one. The company is essentially losing $35,000 on each car they sold the previous day!
Accepting cryptocurrencies definitely has more pros then cons, but at the end of the day you still have to be careful when paying in such a highly volatile currency.