How To Use Cryptocurrency In Your Business
The face of business is changing, and there are a number of reasons for this. One of these is the fact that the way we use money is changing dramatically. Cash is now used much less than a credit or debit card would be, and this has been a recent change. On top of this, the prevalence of cryptocurrencies such as bitcoin and how popular they have become means that even more changes are going to happen, and these virtual currencies will become a legitimate means of payment all over the world in the future. It might even happen sooner than we think.
Right now, cryptocurrencies are used mainly online, but there are moves to ensure they can be used in face-to-face transactions too. If you are considering opening up your business to allow their use, how can this be done?
In order to grow your business in terms of ecommerce development, for example, you might need investments from outside sources. Most of the time, this is an injection of cash (and sometimes, although not always, expertise). What if you could receive this investment in bitcoin or another cryptocurrency? Would that be better?
For many businesses, it would be an extremely useful way to boost productivity and profits. Not only can bitcoin be ‘transferred’ into money that can be used everywhere, but its value has been growing massively, and therefore your initial investment could easily become bigger, helping you even more.
Paying Your Staff
Paying your staff is something you need to take extremely seriously. If you don’t pay when you say you are going to or pay the right amount, not only will you lose potentially good workers, but you might find that you are subject to a legal dispute too. This is not good for your bank balance or your reputation, and it’s why you need to make sure you can afford to take people on to ensure you are doing the right thing.
It might be that you can use cryptocurrency to pay your staff or to use to put towards their benefits if they would prefer standard currency in their pay packets. Offering this flexibility will show you are a thoughtful employer, and could boost company morale in general.
No Banks Are Involved
One of the main benefits of cryptocurrency is that there are no banks involved – it is a peer-to-peer network. This means that there is no exchange rate system required (the value of the currency is the same no matter where you go), and it is a much quicker transaction too.
Your business can use this to its advantage. It will save you time and effort, and it means you can often raise the capital you need much more quickly, potentially helping you much more.
When you make any transaction using cryptocurrency, it is anonymous. This means you don’t have to provide any personal details, making the entire process a much safer one. Identity theft is rife online, and if there is a way to prevent this from happening, it should be taken – cryptocurrency is one way to do this.
Offering this option to your customers will help them to choose you over someone else. It shows you are doing what you can to keep them safe and protected, and even if they don’t want to use cryptocurrency, the fact that you’re offering them the choice is something they will appreciate.
What Is The Process?
If you buy bitcoin with a debit card, credit card, or bank transfer, for example, you will need somewhere to store it. Unlike other currencies, it can’t be kept in a standard bank account, and it’s not a physical coin or banknote, so it can’t be kept in a safety deposit box, for example. This is where the wallet comes in. You will need a wallet to keep your bitcoin safe and secure. Once you have this, you can buy goods and services (or simply wait for the price to rise and then sell your bitcoins) whenever you want.
What Is Mining?
If you hear the term mining associated with cryptocurrency, you might get an image of people digging into the earth to find coins, but of course, this isn’t want happens. A miner is someone who adds the transactions that have been made to the public ledger. The amounts of any transaction are always public, but you won’t be able to see who made the purchase or transfer. The miners add a number of transactions to the ledger at one time in blocks, hence the term ‘blockchain’. Blockchain is literally a chain of transaction blocks.
Miners are actually in competition with one another – when a transaction is made, the details are sent out to all users who host a copy of the blockchain. These are the miners, and their task is to use software to add the transaction to the blockchain. The first one to do it is given bitcoin as a reward.
How Does Blockchain Work?
The blockchains are like a bank ledger that keeps a record of all the transactions and transfers that come with cryptocurrencies such as bitcoin. When the miners are working out what algorithms to post to the blockchain, sometimes they work together, and all post at once – confirmation that the chain works comes from a number of identical algorithms being posted. They then share the funds that are sent out to the ‘winner’.
Blockchain is used to create security. Each chain is connected to the next (and the last) using cryptographic codes that are incredibly hard to tamper with. Since to get into the data in the blockchain you would need to crack a huge number of codes all at once, it is virtually impossible to hack.
Anyone can purchase cryptocurrency, and in most cases, it can be bought in the same way as you would buy any other type of currency, through an exchange system. You can trade your own currency for cryptocurrency, or you can trade one type of cryptocurrency for another.