Cryptocurrency is increasingly being used not only as an investment asset but also as a means of payment. So, the original idea of digital money finally comes to life as crypto was created to become a decentralized method of payment that is not subject to any country, is not issued by any central bank, and is controlled by the community.
However, even with the popularity of crypto, many entrepreneurs still have doubts about the advisability of accepting crypto as payment for goods or services. To decide whether it is profitable for your company to accept crypto payments, let’s access all the benefits and flaws of this method.
Cryptocurrency Acceptance Pros
- Attraction of new clients. There are millions of people around the world who have invested in cryptocurrencies, and they all want to use their funds somehow. However, the number of companies accepting crypto payments is still small, so crypto owners appreciate the opportunity to pay for their purchases with cryptocurrencies and are happy to choose the appropriate business.
- Lack of attachment to a certain location. Wherever the buyer is, they can always pay for their purchase without additional difficulties online.
- Anonymity. Clients can make transactions confidentially, without disclosing personal data.
- Low commissions. Transaction fees when you use digital currencies are more profitable than in case you pay with traditional money.
Cryptocurrency Acceptance Cons
- High volatility. Cryptocurrencies are very volatile, so their value can change a lot in a fairly short period. In 2021, for instance, Bitcoin prices fell by 30% in one day.
- Lack of regulation. Digital currency is decentralized, which has both advantages and certain disadvantages. Decentralization means the absence of regulation from any central authority that guarantees security, such as the Financial Conduct Authority or the National Bank. Thus, there are no official rules and regulations protecting the business except for the security technologies provided by exchanges and processors.