Top 5 Benefits Of Cryptocurrency For Business Operations

Sharan Phillora

September 25, 2022

benefits of cryptocurrency for businesses

Cryptocurrencies have been around for over a decade now, but most people are still trying to figure out what they are and how they can be used. While some businesses have already started integrating crypto payments into their operations, an increasing number of companies worldwide are using Bitcoin and other digital assets for a host of operational, transactional,  and investment needs.

This article dives deep into the different ways companies are using cryptocurrency, the benefits of crypto for business and why it makes sense to be doing business with blockchain.

The Impact Of Cryptocurrency On Businesses 

The world of cryptocurrency is still in its early stages, but it has already begun to impact businesses in a number of ways.

For instance, crypto provides businesses with an alternative way to raise capital. In the past, companies would typically rely on venture capitalists or bank loans to finance their operations. However, with the advent of ICOs/IEOs (Initial Coin/Exchange Offerings), businesses can now turn to the crypto community to raise funds from a distributed pool of investors. This new method of fundraising allows businesses to tap into a global market and collect capital more effectively than ever before.

Another way that crypto is impacting businesses is by making products and services more accessible. International payments can be a hassle, and many online retailers have begun accepting Bitcoin as a form of payment, opening them up to a whole new market of potential customers who may not have otherwise been able to make a purchase. In addition, accepting crypto payments can help businesses avoid the high fees that come with credit card transactions and chargebacks.

Finally, crypto is also having an impact on the way businesses are run by providing them with new tools and technologies to manage their finances. Blockchain – the underlying technology behind Bitcoin – has the potential to revolutionize business processes, including secure data storage, transparent transaction tracking, and improved supply chain management. This eliminates expenditure that would have otherwise gone to a middleman, saving businesses a considerable amount of money.

Top 5 ways businesses can use can use cryptocurrencies to improve business operations

Apart from the aforementioned benefits of crypto for business, there are various ways in which crypto can help improve businesses operations. Here are a few of them:

1. Raise Capital Through Crowdfunding

For blockchain projects, raising capital through Initial Coin Offerings (ICOs) or Initial Exchange Offerings (IEOs) have become quite popular in recent years as an alternative to traditional methods, and it’s not just startups that are turning to this method of fundraising. The Internet gave us the ability to share an idea with the entire world, and with blockchain, projects now have the ability to crowdfund resources to bring these ideas to life, and even some of the world’s most established companies are looking into raising funds through crypto.

Crowdfunding with a dedicated, public blockchain wallet keeps all donations information open to the public, allows all parties to see how many donations have come in, and what these funds are being used towards. It also lets fundraisers avoid third-party fees without compromising on security or donor trust.

2. Crypto as Business Equity

A popular trend seen in the modern business world is giving early employees a cut of the company’s profits through shares and employee stock options. However, distributing and managing these assets can be a hassle. With blockchain and digital assets, the process of offering and providing employees equity is much more streamlined, enabling businesses to securely and transparently track company ownership. Using crypto for business equity also makes it much easier to buy, sell, or transfer shares.

3. Crypto as a form of payment

Large companies are now turning to cryptocurrency as a means to pay for goods and services. Tech behemoths like Microsoft, Dell, AT&T, and others have also started accepting Bitcoin as payment. Cryptocurrency can be used to pay for things online without having to go through a bank or another third-party intermediary, reducing transaction costs, speeding up payments, and keeping your financial data secure. Businesses can also set up their own private blockchain networks to keep track of transactions made within the company while keeping competitors and other market players in the dark.

Many companies have even started to pay their employees with cryptocurrency. This has a number of advantages, such as being able to pay employees anywhere in the world without having to worry about cross-border transaction fees. Crypto can also be used to stream payments to employees, which is especially useful for freelancers or contractors. 

One of the biggest drawbacks of getting paid in cryptocurrencies is the hassle of converting digital assets into spendable fiat currency. While there are a number of things crypto can buy, it’s practically impossible to live anywhere without interacting with the local currency. With Binamite, businesses can pay using any of the various available options, from crypto wallets to credit cards, while employees can choose how to split their pay between their local currency, USDC, BTC, and ETH for each invoice. Binamite also offers complete invoice and contractor management tools, streamlining the process of paying and getting paid in cryptocurrencies.

5. Crypto can help businesses go global

Another advantage of cryptocurrency is that it helps businesses cater to a more international crowd. In the United States alone, 7% of people don’t have a bank account or access to financial services, and this issue extends to over 2 billion people worldwide – nearly 30% of the global population. 

With crypto, businesses can easily accept payments from anywhere in the world without having to worry about cross-border transaction fees and international banking protocols. This makes it much easier for businesses to sell their products and services to a global market.

Crypto can help businesses tap into all kinds of new markets that would otherwise be inaccessible. Countries like Venezuela have been struggling with high inflation rates, making it difficult for Venezuelan businesses to accept payments in their local currency. This is just one example of many countries suffering from currency inflation, and digital assets allow businesses to continue operating in these countries.

Top 3 Companies That Have Already Adopted Cryptocurrency 

1. Tesla invested $1.5 Billion in Bitcoin

Elon Musk, from being a leader of the Doge memecoin army to a full-fledged Bitcoin investor, has had quite the journey. He has had a massive hand in pumping Bitcoin after updating his Twitter bio to include Bitcoin and subsequently buying $2 Billion worth of Bitcoin for Tesla. This move sent shockwaves throughout the crypto community and beyond, with many heralding it as a sign of mainstream institutional adoption.

While he later announced that customers could buy their vehicles using Bitcoin, he took back his support for Bitcoin due to environmental concerns surrounding its mining operations, and Tesla has since sold a large portion of its Bitcoin portfolio. Dogecoin appears free from his criticisms, but Musk has stated that Bitcoin’s environmental impact is improving, and that Tesla would likely resume accepting Bitcoin payments in the near future.

2. PayPal’s early adoption

PayPal has always been a pioneer in ushering digital transactions. With its history of promoting and simplifying transactions across borders within minutes, it came as no surprise when the platform rolled out the ability for people to buy and transact in cryptocurrencies like Bitcoin, Ethereum, Litecoin and Bitcoin Cash. While crypto enthusiasts have criticized PayPal for not letting users transfer their coins to a private wallet, it is still a big step forward in terms of mainstream adoption.

3. Visa and MasterCard’s adoption

Two of the world’s biggest global payment processors, Visa and MasterCard, have also supported the use of Bitcoin. Last year, Visa announced that they would be enabling support for settling transactions in stablecoins on the Ethereum blockchain. Soon after, MasterCard followed suit, announcing that it would be enabling cryptocurrency transactions on its network in 2021.

With such major corporations hopping on the crypto bandwagon, the doors to broader mainstream adoption appear to be slowly opening.

Should your business invest in cryptocurrency?

Investing in cryptocurrency is a risky proposition, but it could pay off if you make the right choices. Tying your company’s valuation to a decentralized network of disparate participants with no central authority is risky.  If you’re thinking about investing in crypto, then you should do your research and only invest what you can afford to lose.

It’s important to remember that cryptocurrencies are still a new and volatile market, so it’s vital to approach any investment opportunity with caution and realistic expectations. That being said, directly investing in cryptocurrencies isn’t the only way to reap the benefits of this burgeoning market. 

Offering and accepting cryptocurrency payments offers a wide range of benefits, and integrating your products and services with Web3 applications can be a compelling way to rapidly boost your business exposure and accessibility. With its potential to help businesses go global and reduce transaction costs, crypto could be the key to taking your business to the next level.

Can businesses accept cryptocurrency?

Yes, businesses can accept cryptocurrency as payment. In fact, many businesses have already started to do so. Cryptocurrency can be used to pay for things online without having to go through a bank or another third-party intermediary. This helps reduce transaction costs and speeds up the process of making payments.

What’s more, using cryptocurrency can help businesses avoid chargebacks. With crypto, businesses can also choose to set up their own private blockchain to keep track of all transactions made within the company.

If you’re thinking about investing in crypto, then you should do your research and only invest what you can afford to lose. Additionally, it’s important to remember that cryptocurrency is still a new and volatile market. As such, it’s important to approach any investment with caution and realistic expectations.

However, if you’re willing to take on the risks, then investing in cryptocurrency could be a way to give your business a boost. With its potential to help businesses go global, reduce transaction costs, and avoid chargebacks, crypto could be the key to taking your business to the next level.

The Bottom Line

It will be interesting to continue monitoring the future of cryptocurrency unfold.  It is evident that many businesses have started to explore ways in which they can use crypto to streamline their operations. From raising capital to managing business equity, there is a multitude of ways in which companies can add value by integrating cryptocurrency into their business operations. With the increasing mainstream adoption of crypto, it is likely that we will see even more businesses utilizing digital assets in the near future.

How Binamite Can Help? 

Binamite is a borderless payments platform that gives businesses the flexibility to pay their employees, contractors, and freelance workers using their preferred method, while ensuring recipients can split their pay between fiat and crypto in any ratio. If you’re looking for the most flexible, comprehensive, and convenient solution to paying and getting paid in digital assets, head over to Binamite and Sign Up for free!