Entrepreneurship is one of the buzzwords in 2021. There are plenty of opportunities to build your brand online and offline. However, a lot of start-ups struggle in the beginning to find investors and raise capital. Actually, the financial systems that are created to fund innovative ventures haven’t evolved in the last 20 years, while technology is evolving rapidly, and there are innovative businesses that require funding.
Cryptocurrencies and blockchain technology are one of the latest examples of innovative technologies that can be used to help online and offline businesses reach their business goals. So, without further ado, let’s take a look at the benefits offered by crypto and blockchain for small businesses and start-ups.
Low Fees
One of the main advantages of crypto transactions is that they are attached to low transaction fees. The main reason for the notoriously low transaction fees of Bitcoin, for example, is that the cryptocurrency is based on a decentralized, peer-to-peer blockchain network. This means that this is a distributed database where each BTC transaction is recorded, while the miners have the same level of authority when it comes to adding new BTC transactions and processing them.
This is the main factor why the transaction fees are low and why businesses, in general, opt to accept crypto payments. In fact, many famous brands decided to support the mainstream adoption of cryptocurrencies by accepting crypto payments. Some of the biggest names in the industry are Microsoft, Overstock Home Depot, Twitch Square, OK Cupid, and many others brands.
Reputable new online casinos like Big Wins Casino are also good examples of online brands that accept crypto payments. They remain always at the forefront of technological innovations because they want to be able to integrate different technological advancements in order to stay on top of the competition. Accepting crypto payments comes without any additional costs for online or brick-and-mortar businesses that just to invest in a crypto wallets and otherwise, they don’t have any extra costs at accepting virtual currencies.
As we said there are a lot of other advantages, and also it provides an opportunity for online businesses to connect with an entirely new audience of crypto users which is a major motivation for global crypto adoption.
Benefits Offered By Blockchain and Crypto
There are many benefits offered by blockchain technology for businesses. Some of the benefits offered by businesses regarding blockchain technology include enhanced transparency, security, and better traceability of the products and services in the blockchain network. When we talk about blockchain technology in businesses, we are talking about a decentralized blockchain-based solution that is based on cryptography. This means there is a high level of security, and there isn’t a known case of anyone gaining control of the blockchain network.
This prevents fraud and errors from happening in the network, and it also offers complete transparency, which further enhances overall security. Otherwise, the blockchain network is great for complex supply chains because it offers real-time visibility of any item in the network and everything that is recorded in the network remains there forever, and no one can alter the data, which means that you can usually as a user find out everything that you want about the status of certain products services or suppliers.
One example of successful implementation of blockchain technology represents IBM with its blockchain-based solutions for supply chain management, specifically for well-known brands such as Walmart and Carrefour that already have highly complex supply chain systems. It demonstrates how blockchain technology can be built to improve the relationship between customers and brands since you can have a clear overview of the origin of each of our products, and obviously, there are plenty of benefits, as we mentioned, for every stakeholder in the blockchain network.
In addition to the implementation of blockchain technology in supply chain management, it can also be applied to other sectors such as healthcare – enhancing security when it comes to transferring data between departments, finance, obviously with the implementation of cryptocurrencies, and many other industries.
Crypto and Capital
Crypto can be used to raise capital because they hold significant money-making potential. Investors can support the business by making crypto investments in start-ups or small businesses. Also, when the business accepts crypto payments, they can also be used as additional capital in the business.
Another advantage is that you can quickly sell or buy different cryptocurrencies on online trading sites. This is another benefit for businesses because cryptocurrencies are a great hedge against inflation, and by accepting crypto payments, the business is gaining a competitive advantage.
That being said, not every cryptocurrency is made equal, and since there has been a boom in the crypto market with an increasing range of new cryptocurrencies, it’s important to stay on top of the latest developments in this sector and to learn as much as you can about the crypto project before you choose to invest in specific virtual currency.
Crypto Investments
Otherwise, cryptocurrencies hold significant potential to be used for raising venture capital and specifically for the democratization of capital. An initial coin offering is a special type of funding that is based on crypto.
The start-up is able to raise capital by issuing a digital currency that is associated with its services or products. So, investors are buying the cryptocurrency sold by the company, and the best part is that it expands the pool of potential investors because not only investors can back up the company but also regular people that are excited about the business. This is an entirely new way of raising capital with cryptocurrencies and offers more opportunities for businesses and investors.
Summary
Blockchain technology is a great solution if the business wants to cut costs and also improve the efficiency of its business processes. Moreover, cryptocurrencies represent an innovative solution for raising capital. In the long run, however, they can be used as a great hedge against inflation, and the business can also treat their crypto funds on online trading sites whenever they want. Otherwise, cryptocurrencies represent a serious advantage for businesses because they are able to communicate with a new target audience.
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