What Small Businesses Should Know About Cryptocurrencies
By entering 2019, Bitcoin and other cryptocurrencies have gained a considerable growth and to a great extent got out of the harsh decline that they sustained in 2018. The growth and development of different cryptocurrencies heavily affect various stakeholders in this market.
By entering 2019, Bitcoin and other cryptocurrencies have gained a considerable growth and to a great extent got out of the harsh decline that they sustained in 2018. The growth and development of different cryptocurrencies heavily affect various stakeholders in this market. Small businesses that use the infrastructures of the crypto world and cryptocurrencies in the process of their activities, surely like other actors present in this field, are affected by various volatilities and changes. Due to their nature, small businesses undergo more function volatility through changes and volatilities of the market compared to other kinds of businesses. Therefore, they need to exercise more caution about their presence in the crypto market.
What Are Small Businesses Doing in the Crypto World?
With the presence of cryptocurrencies, sellers can directly make financial transactions with buyers. This makes different transactions and trades that small businesses make using cryptocurrencies to be much faster, more effective, and without worries. Companies like VISA card that further the transactions between two parties and more precisely put plays the role of a middleman in trades, in exchange for this collaboration and mediation, this company receives a lot of fees. VISA requires a fee of 3 to 15 percent of the total amount of different transactions. But using a network like Blockchain makes the transaction fee for small companies decrease greatly. What is better for a small business than this?
What Are the Dangers of Cryptocurrencies for Small Businesses?
Of course, cryptocurrencies can greatly help different businesses, but it should be accepted that if a business is faced with a decline in the value of cryptocurrencies and experience this problem before changing their cryptocurrencies to the dollar and real currencies, then it will sustain great losses. Anyway, cryptocurrencies are growing and developing and the tools that are used in their world, like digital wallets, will make the process of transactions and different trades much faster and easier. Small businesses should step more carefully in the path of using cryptocurrencies with the precise knowledge of the different dimensions of their activities. These companies, have limited financial sources and in order to make their brand and grow in their market of the target are faced with some difficulties in which any kind of mistake especially financial mistakes can make them sustain great costs. Therefore, they should be more cautious in the volatile, or more precisely, the strange world of cryptocurrencies. Of course, with the maturation of cryptocurrencies, probably the matter of caution will be moderated to some degree, and small companies will be active in this field with fewer dangers. The world of cryptocurrencies is still moving forward in its cycle of evolution, and thus, we should wait in order to make a certain judgment about the future of small businesses in the crypto market.