Cryptocurrency began in 2008 with the creation of bitcoin in response to the 2008-2009 recession and the lack of certainty in established currency. The original idea was to create a currency that could transcend government backed currency and protect wealth for citizens from countries with unpredictable economic circumstances.
Cryptocurrency is a digital exchange currency that secures itself through “digital communications between third parties that is virtually unhackable. In fact, that’s the major reason for the widespread interest, aside for the investment potential.
With the new currency method, the question arises as to whether small businesses should look to accept the growing trend. While every situation is different for each small business, taking a look at crypto is a good idea for any interested business considering accepting the different types of cryptos.
For the pros, crypto has little to no transaction fees depending on the amount of currency being exchanged. In addition, transactions are incredibly fast cutting some times from days to seconds. Lastly, in a simple explanation, it allows a business to accept an additional payment option that can lead to more business.
The cons all revolve around uncertainty with the new currency type. High volatility is a huge issue as bitcoin (for example) saw a high of almost 20K per coin, and a low of 3K in just a year. Taxes and regulation are also an issue with the government still determining if crypto is a security, currency, or something else.
In the end, it is up to the small business to decide whether to proceed with the new payment options. If you are a B2C business, I’d suggest taking a look at the more well known cryptos and decide from there.