Table of Contents
Apart from their surging popularity as attractive investable assets, cryptocurrency(ies) can also help businesses grow and scale up tremendously.
Businesses must evolve with time. They must incorporate the best practices to reduce costs, accelerate payments, and maximize profits.
But it so happens that current commercial setups hinder the progress of firms. Especially those that are small and medium in size.
Even self-employed professionals (read freelancers) who work alone to cover daily costs and expenditures have a tough time getting their work’s worth due to undue interference by third party ‘payment processing’ companies.
In such a scenario, cryptocurrencies can greatly prove beneficial for individuals and companies.
Their decentralized nature guarantees the smooth operation of businesses without many roadblocks.
So, without further ado, let’s dive in and examine the business benefits of digital currencies!
Low Transaction Fees
Business transactions involve multiple money transfers done throughout the month, and even during the day (in some cases).
The transaction fees in such transactions need to be lowest for firms and individuals to realize their appropriate worth ( profits + operational costs).
Generally, that’s not possible due to intermediary payment companies deducting their commissions for ‘processing transactions’. Cryptocurrencies eliminate the need for middle-man payment processing.
Their underlying distributed peer-to-peer technology (also called blockchain) ensures low transaction costs and direct and transparent exchange of funds between two transacting parties.
Global Acceptance
By their very design, cryptocurrencies have a global presence. Bitcoin (BTC) and many other cryptocurrencies have strong communities backing them across the world.
That’s because of their underlying mathematics and algorithm-driven protocols.
One doesn’t need an elaborate setup to send and receive crypto funds. Just a simple wallet, that’s all. Every transaction can take place from that particular wallet.
Another way to access cryptocurrency assets in India is by buying/trading them on WazirX. To know more about that in detail, check out the video below:
Complete Ownership of Funds
Often product sellers and service providers have their accounts frozen by banks or their business accounts shut down by centralized payment companies.
Bitcoin (BTC) or any other cryptocurrency solves this. Due to the decentralized nature of crypto-asset networks, there are no hold-ups. Fund transfers happen after consensus is achieved between network participants.
This also eliminates the risk of ‘double spending’. Double spending is a situation where fraudulent folks can duplicate a certain transaction and extract the same amount as that involved in the exchange.
With cryptocurrencies, your payments and your funds remain your own.
Investment Benefit
Cryptocurrencies can be accepted as payments but unlike usual state-backed currencies, they can double up as investments too. And why?
Because over a period of 11 years since the inception, the cryptocurrency market cap has grown from absolutely nothing to $300 billion.
During the famous 2017 rally, cryptocurrencies had a combined valuation of around $850 billion!
Investors have reaped a six-figure return on their bitcoin (BTC) investment from 2010 to date.
New Customers, New Business Prospects
For small or medium-sized firms, accepting cryptocurrencies can open up new business opportunities. Early cryptocurrency adopters/users can become prospective customers for purchasing goods or services.
This, in turn, will accelerate the process of acceptance of innovation as per the graph below:
As of date, companies and organizations have already joined the ‘businesses adopting crypto’ bandwagon. Some of the notable names include:
- Microsoft – Global IT giant, Microsoft accepts bitcoin (BTC) payments for Xbox games, music, purchasable content from the Windows store. Bitcoin can be added as a balance to the Microsoft Account which in turn can be used to make payments later. However, Office 365 subscriptions cannot be purchased with bitcoin.
- WordPress – One of the largest blogging websites in the world, WordPress permits users to conduct BTC transactions. Various plugins can be integrated with the option of bitcoin. WordPress.com grants complete flexibility for BTC payments, which makes it a prominent supporter of the first virtual currency.
Other Business Partnerships
Organizations like Samsung are amongst the first multinational corporations in the world to expose blockchain-based solutions to users.
Recently, the Korean electronics giant partnered with the Stellar Development Foundation to allow blockchain developers to produce Stellar based apps for Galaxy Smartphone users.
Apart from the Samsung Blockchain Keystore also supports apps built on TRON, Ethereum, and Klaytn.
Ripple is a payments company that has onboarded over 200 banks and financial institutions to conduct cross-border financial settlements on its proprietary payments network, RippleNet.
RippleNet uses the cryptocurrency XRP to process transactions.
The business applications for cryptocurrencies and blockchain technology are manifold. The world is slowly warming up to the idea of crypto assets pervading the current financial and industrial systems.
It’s only a matter of time before digital currencies become a way of life just like email and the internet.
Frequently Asked Questions
Are Cryptocurrencies Legal In India?
In India, cryptocurrency is legal, and anyone can buy, sell, and trade it. Because India lacks a regulatory system to regulate its operations, it is presently uncontrolled. According to the Ministry of Corporate Affairs, companies must now document their crypto trading/investments inside the financial year.
Is Crypto Legal In India?
Cryptocurrencies are legal in India, and anyone can purchase, sell, and exchange them. It is currently uncontrolled, as India lacks a regulatory structure to oversee its operations. Per the Ministry of Corporate Affairs, companies must now record their crypto trading/investments within the financial year. In cases where a person receiving the gains is an Indian tax resident, or the cryptocurrency is regarded as domiciled in India, cryptocurrency transactions have been taxable in India
Who Invented Cryptocurrency?
Satoshi Nakamoto invented cryptocurrencies and the technology that makes them function in 2009. The presumed pseudonymous individual or persons who invented Bitcoin used this identity. In addition, Nakamoto created the first blockchain database. Even though many people have claimed to be Satoshi Nakamoto, the person's identity remains unknown.
Is Bitcoin And Cryptocurrency The Same Thing?
Bitcoin is a cryptocurrency that was designed to facilitate cross-border transactions, eliminate government control over transactions, and streamline the entire process without third-party intermediaries. The absence of intermediaries has resulted in a significant reduction in transaction costs. Satoshi Nakamoto, the creator of Bitcoin, created the first cryptocurrency in 2008. It began as open-source software for money transfers. Since then, plenty of cryptocurrencies have emerged, with some focusing on specific fields.
Is crypto legal?
Crypto is legal in most countries, including India. While nations like the U.S. and many in Europe have regulatory frameworks, others like China have strict bans.
Can I Invest In Cryptocurrency?
Yes, with exchanges like WazirX, you may invest in cryptocurrency in India. To begin, go to the WazirX website and register. After that, you will receive a verification email. The link received by verification mail will only be available for a few seconds, so make sure you click it as quickly as possible. This will successfully verify your email address. The following step is to set up security, so choose the best solution for you. After you've set up the security, you'll be given the option of continuing with or without completing the KYC process.
Is Cryptocurrency Legal In India?
In India, cryptocurrencies are legal; anyone can purchase, sell, and trade cryptocurrencies. They are currently unregulated; India does not have a regulatory framework in place to regulate its functioning. According to the Ministry of Corporate Affairs (MCA), companies must now declare their crypto trading/investments during the financial year, according to the Ministry of Corporate Affairs (MCA). Cryptocurrency transactions have been taxable in India when people receiving such gains are Indian tax residents or where the crypto is considered to be domiciled in India
How Many Cryptocurrencies Are There?
There are over 5000 other digital currencies available on the internet in addition to Bitcoins. The only problem is that they haven't gotten the users' attention. Besides Bitcoins, a few other digital currencies have gained popularity among users. It's been more than ten years since Bitcoins were first released, and now they've achieved new heights thanks to their phenomenal success.
Is Cryptocurrency Banned In India?
No, cryptocurrency is not banned in India. India has seen its ups and downs in the crypto sector concerning its legal status. The Reserve Bank of India (RBI) issued a circular in April 2018 advising all organizations under its jurisdiction not to trade in virtual currencies or provide services to assist anyone in dealing with or settling them. A government committee proposed outlawing all private cryptocurrencies in mid-2019, with up to ten years in prison and severe penalties for anyone dealing in digital currency. The Supreme Court overruled the RBI's circular in March 2020, allowing banks to undertake cryptocurrency transactions from dealers and exchanges.
What Is The Safest Cryptocurrency To Invest In?
Bitcoin has had the highest market capitalization, has been around the longest, has the most experienced development team, and has enormous network impact and brand recognition. As a result, while trading cryptocurrencies, the rate of return on Bitcoin is commonly used as a benchmark. However, the risks associated with cryptocurrencies remain, and the safest cryptocurrency for you depends on your analysis.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
