Saturday, 25 May 2019

How cryptocurrency goes beyond currency

If you own a small business, you might be at a loss to understand how cryptocurrency can possibly fit into what you do.
Many people equate cryptocurrency with Bitcoin, as that is the most popular and lucrative coin on the market.

Bitcoin’s main function is as a decentralized payment system. While that undoubtedly possesses certain advantages for smaller businesses (fewerfees, no borders, the quickerrealization of online payments for better cash flow), it is still a bit limited.

As a result, small business owners might see the coins as nothing more than an unnecessary hassle in an already complex business environment, and thus they keep away from involving them in their business.

That could turn out to be a mistake for those companies that make that decision. Cryptocurrency goes far beyond being able to pay for things and receive payments for them. It entails many activities that are germane to your business, activities which will make your life as CEO or owner much easier. If you are curious about how to invest in cryptocurrency, you can take advantage of a crypto robot like Bitcoin Trader to make that happen for you.

There are other ways that your business can profit from cryptocurrency, however, ways that you should understand to maximize the potential of your company.

1. The Other Coins

There are many other coins on the cryptocurrency market besides Bitcoin. The one thing that all these coins have in common is that they are driven by a technologyknown as the blockchain. The blockchain is a somewhat complicated process, but what you need to understand is the main thing that it accomplishes: It allows for verification and validation of processes without a third party getting involved.

2. What That Means for Your Business

Whenever you are conducting business, you are generally using these third parties, although you might not realize it. You might pay someone to write up and verify your contracts. There might be someone that you hire to help make your supply chain run smoothly. You might also have someone on hand who helps with record-keeping. All those hires add up fees for your business and cut into your profit margin. The blockchain, via cryptocurrency, helps to eliminate all of that from your everyday operations, freeing up crucial time and money for your business.

3. Piggybacking Technology

The good news is that you don’t necessarily need to be a coding expert (or even have one on staff) to utilize the blockchain. There are coins, Ethereum being the most famous example, that allowsdevelopers to use their blockchain for their own purposes. This allows businesses to customize the operations that they need the blockchain to handle on their end. Each business can find ways to cut costs and operate more efficiently via these types of coins, and the applications are practically endless.

Cryptocurrency is something that easily outstrips the common notion of it as a payment system. Once you start to understand that as the owner of a small business, you can start to benefit from it as well.


source: bmmagazine.co.uk
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