How Can Small Businesses Benefit from Bitcoin
Bitcoin: While cryptocurrency is popular in the digital world, many businesses are yet to embrace it. The corporate realm is unfamiliar with the blockchain concepts and has not adopted using digital currencies for payments. Some large corporations are open to crypto transactions, but many small businesses are on unfamiliar grounds. Since digital currency is gaining traction, small companies should also be ready for the changing financial landscape. Fortunately, they can buy cryptocurrencies from the official site and enjoy some benefits from embracing them.
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Table of Contents
Reduction of Transaction Charges
Most small businesses accept credit card payments, which is convenient for buyers. However, every time you swipe a card, the credit card issuer charges a transaction fee of up to 4%. While the figure is inconsequential for large companies, the expenses pile up for small businesses leading to cash flow problems. Most small companies resort to minimum purchase quantity to minimize credit card use, imposing unnecessary customers’ limits. Transaction charges also skyrocket in foreign transactions. For instance, the bank transfer charges in international transfers can be high compared to local transfers. Fortunately, using cryptocurrencies can eliminate intermediaries in transactions reducing expenses. Small businesses can also pay suppliers using bitcoin to minimize costs. Your business can buy bitcoin with a credit card and use it for transactions.
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Lack of Inflation
Inflation usually affects customers’ buying power and can cause losses for businesses since you buy products at a high price and sell them at low prices. Unlike fiat currency, which is prone to inflation, cryptocurrencies were created to be finite. Hence inflation is virtually non-existent since there is no possibility of surplus. The lack of inflation benefits both the buyer and the seller.
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Fast and Secure Transactions
Most bank transfers take more than 24 hours to verify transactions and transfer money from the buyer to the seller. If you are waiting for the payment to dispatch the goods, it can cause unnecessary delays to your customers. Selling and buying gift cards using crypto is a fast and seamless process, and you don’t have to wait for days for a financial institution to verify the transaction. The elimination of third-party involvement in crypto transactions also speeds up the process since a buyer can transfer bitcoin directly to your cryptocurrency wallet. Buyers can also buy gift cards with cryptocurrencies and make payments without divulging any personal or financial information. This benefits a buyer who wants to keep their personal information secure during online purchases.
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Exposure to International Markets
Small businesses with only credit cards as a payment method are limited to geographic locations and specific customers. If you embrace cryptocurrencies, it exposes your business to the ever-growing community of crypto loyalists. You can also market your products globally and increase your profits in online sales. Aside from capitalizing on the higher customer acquisition in a new demographic, you can establish a long-term revenue stream. For instance, you can buy cryptocurrencies for business transactions or as an investment. You can develop new revenue streams from your crypto and expand your business; for example, mining digital currency can boost your revenue streams.
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Increased Brand Visibility
Today’s online market is oversaturated, and it is vital to stand out if you want to increase profits. You need unique ideas and innovations to differentiate from other small businesses and build your brand visibility. One of the methods to expand your business customer base is to adopt crypto for business transactions. You will gain exposure from the press, and the cryptocurrency community never disappoints in creating a buzz around your brand. You will move from a local business to an internationally recognized entity.
Conclusion
Digital currencies are the future, and small businesses that adopt them early have an advantage over their competitors. Besides, it opens numerous doors for businesses and increases revenue streams.
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