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Benefits of paying with cryptocurrency

Benefits of paying with cryptocurrency

An increasing number of companies worldwide are using digital assets for a host of investment, operational, and transactional purposes. Although fiat currency payments are still the most popular form, adding paying with cryptocurrency into the equation provides consumers and merchants with unique benefits. GIG will list some of the essential benefits of paying with cryptocurrency in the following article.

Read more: What You Must Know Before Investing in Crypto

What can cryptocurrency do for your business?

To spark your business’s thinking about cryptocurrency, here are some of the rationales behind why some companies are currently using cryptocurrency:

  • Cryptocurrency may provide access to new demographic groups. Users often represent a more cutting-edge clientele that values transparency in their transactions. One recent study found that up to 40% of customers who pay with cryptocurrency are new business customers, and their purchase amounts are twice those of credit card users.
  • Introducing cryptocurrency now may help spur internal awareness in your business about this new technology. It also may help position the business in this critical emerging space for a future that could include central bank digital currencies.
  • Cryptocurrency could enable access to new capital and liquidity pools through traditional investments that have been tokenized, as well as to new asset classes.
  • Cryptocurrency furnishes specific options that are not available with fiat currency. For example, programmable money can enable real-time and accurate revenue-sharing while enhancing transparency to facilitate back-office reconciliation.
  • More companies are finding that essential clients and vendors want to engage by using cryptocurrency. Consequently, your business may need to be positioned to receive and disburse cryptocurrency to assure smooth exchanges with key stakeholders.
  • Cryptocurrency provides a new avenue for enhancing a host of more traditional Treasury activities, such as:
  • Enabling real-time, simple, and secure money transfers
  • Helping strengthen control over the capital of the enterprise
  • Managing the risks and opportunities of engaging in digital investments
  • Cryptocurrency may serve as an effective alternative or balancing asset to cash, which may depreciate over time due to inflation. Cryptocurrency is an investable asset, and some cryptocurrencies have performed exceedingly well over the past years. There are, of course, clear volatility risks that need to be thoughtfully considered.

Benefits of paying with cryptocurrency

Cheap and instant worldwide payments

A long time ago, cash was the primary way of transacting. People would buy and sell everything using cold, hard cash. After that, debit and credit cards became popular. People no longer needed to carry around cash and instead could buy using a card conveniently in their wallets or purses. While debit and credit cards are great, the fees associated with these cards can be exorbitant. These fees can very quickly add up from debit and credit card fees, merchant fees, checking account fees.

Cryptocurrency is a new payment method based on blockchain technology. Using smart cryptography or encryption, unique and divisible digital currencies are created. The transaction costs of cryptocurrencies are low, and payments can take place almost immediately and worldwide.

Cryptocurrency is your own property.

Benefits of paying with cryptocurrency

As long as you know the passphrase/password of your digital wallet, the crypto coins/tokens are entirely under your management and ownership, and no one else can use them.

This is in contrast to the money you put on a bank account, which is no longer yours from a legal point of view. When you deposit money into the bank account, you become a bank’s creditor that manages your money on your behalf.

In transactions you carry out with bank deposits, the bank acts as an intermediary between you and a third party. Regarding these transactions, you trust that the bank will perform the transfer as you intended.

It works differently with cryptocurrencies. You immediately do business with other people without the intervention of a bank or third party. Transactions with cryptocurrencies are peer-to-peer transactions or transactions from people to people.

Full 24/7 traceability of transactions

Each transaction within the blockchain is verified by a decentralized network of devices (called nodes), stamped on time and linked to the previous transaction, creating a chronological series of transactions.

The register of these successive and irreversible transactions (also called the blockchain) is continuously synchronized and updated on all devices participating in the blockchain network. This makes it impossible that a third party manipulates the payment or the sender to reverse the payment. Everyone can also continuously verify whether or not a transaction has taken place. These transactions can be followed anonymously by everyone via the so-called block explorer.

High level of privacy

Most online transactions require an array of information to identify the person conducting the trade. For example, transferring money from one person to another can be done only after the identifying information for parties at both ends is verified. Similarly, online purchases also require you to enter identifying information to make a purchase. The verification process may prevent crime, but it also places an intermediary firmly in charge of the transaction, allowing them to control the provisioning of services to select parties.

Paying with cryptocurrency transactions is pseudonymous. While this means that they are not entirely anonymous, paying with cryptocurrency can identify the transactions only by using a blockchain address. An individual can have multiple addresses, just as they can have multiple usernames and passwords for a single account. Internet Protocol (IP) addresses or other identifying information are not required to conduct the transaction.

Paying with cryptocurrency by mobile apps

As with many online payment systems, crypto inventors can pay for their coins anywhere they have Internet access. This means that purchasers do not have to travel to a bank or a store to buy a product. However, unlike online payments made with bank accounts or credit cards, personal information is not necessary to complete any transaction.

Cryptocurrencies provide a technical solution to problems with privacy, the unbanked, international payments, high transaction and service costs, bureaucracy, and electoral fraud. Blockchain technology eliminates the intermediary (middleman) and allows people to do business directly, globally, and in a cheap way. Therefore, paying with cryptocurrency brings many benefits to both parties – the provider & the buyer.

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