News
Cryptocurrency and Your Business
With our digital landscape, cryptocurrencies continue to be a trending topic, acting as a popular option and investment opportunity for many individuals and businesses alike.
For those unfamiliar with the term, cryptocurrency is secure digital money that is separate from government bodies (including banks) that usually works with blockchains. Blockchains act as a database for cryptocurrencies to record transactions. You’ve likely heard of the most popular form of cryptocurrency, Bitcoin, but there are several types of virtual money out there: Ethereum, Cardano (ADA), Tether, etc.
Now that we’ve done a high-level overview of the digital financial opportunities, you might be wondering:
What does this mean for businesses?
Some people think of cryptocurrencies as shady or untrustworthy, but over 100,000 businesses use them (including some big names, like Microsoft and Amazon). The downside of cryptocurrency is that it is not regulated by any government body, meaning there is some risk involved, especially when you’re dealing with not-as-popular cryptocurrencies that aren’t a part of a blockchain. Yet, you could argue there is risk with physical money as well — someone could pay with a counterfeit bill and having large amounts of money may increase the risk of a robbery.
While you don’t need to become a crypto-run business anytime soon, it may be worth keeping cryptocurrencies in mind for future opportunities and benefits you can receive without extra transaction costs, bank fees or wait times. ZDNet shares a list of helpful ways to get started if you’re interested in ways to accept Bitcoin and other cryptocurrencies.
As the popularity continues to climb and more organizations accept cryptocurrency, you don’t want to fall behind on advancing technology and become outdated in your industry — or the country. Financial Post reported that Andreas Park, a finance professor at the University of Toronto, seems to think that digital currency becoming a part of Canada’s central bank system is unavoidable. It may be worth looking into investment opportunities while it is not under a regulated system.
It’s never a bad idea to stay on top of trends and changes in Canada’s financial landscape, no matter the size of your business; look into how cryptocurrency may benefit your business, or at least understand how the database and transactions work. Education and research are key to adapting to this new form of transaction.
Additional sources: https://due.com/blog/cryptocurrency-small-business-need-know/
All Posts