The emergence of blockchain technology has created massive opportunities for multiple individuals and companies. For startups, this is good news because they can embrace the opportunities in blockchain to expand their businesses. Are you wondering how blockchain and Bitcoin can help your young business? Please keep reading to discover various benefits of using Bitcoin and its underlying blockchain technology.
Faster payment
Startups need cash to continue operating smoothly. When using conventional methods, funds may delay at banks because of the need to verify the transaction. These delays may hurt your business’s operations and reduce its productivity.
Unlike the mainstream financial institutions that take time to verify and approve your transactions, blockchain offers quick payment based on a peer-to-peer approach. This prompt payment makes your startup operate smoothly. And smooth operations means that your business is set to grow faster.
If you were to process the same transaction through mainstream banking, you’re likely to wait for some time before the money comes to you. Furthermore, banks are likely to charge you for verifying your transaction. Waiting for long may hurt your startup by disrupting operations.
Bitcoin and blockchain help in raising funds for venture
Many businesses haven’t achieved their objectives because they lack funds. Conventional methods of raising money are expensive and might not be the best for small businesses. For example, mounting an IPO may cost you an arm and a leg.
The good news is that Bitcoin and blockchain can help you raise funds through various ways, including initial coin offering (ICO) and Initial exchange offering (IDO). You can use the funds you raise through these methods to expand your business.
Multiple entities like Bancor and Tezos have used ICOs and IDOs to raise funds for their enterprises. For example, Tezos used the ICO fundraising method to raise $232 million.
Inventory tracking
When you order goods from abroad, you need to be always informed about their status. Standard methods of tracking your inventory are expensive for many startups. But the good news is that BTC and blockchain technology can help you.
Bitcoin and blockchain enable you to track inventories of your startups. Using the two methods, you can easily record lists by capturing specific items, like selling, purchasing, and shipping.
A significant perk of using decentralized technology is that it’s free. Remember your young business needs to cut costs to grow. Unlike specific tracking services that are expensive, using Bitcoin and blockchain technology offer a free tracking solution. So, you can use the amount you were to incur in tracking to expand your business further.
Investment
You can invest in Bitcoin by either trading the token regularly or holding it for a long time, waiting for the price to increase before you sell it. However, if you don’t have the time to trade the crypto, you can sign up with the Bitcoin circuit for an excellent cryptocurrency trading solution. By using complex trading bots, you’re likely to earn handsomely from your investment.
Smart contract agreement
In the traditional approach, contracts are signed when you want to buy or sell specific services or goods. For such an agreement to be enforceable, you need to meet a lawyer who will draft the contract and witness the signing procedure. However, the elephant in the room is that this procedure takes a long time and expensive. That’s how intelligent contracts come in. they’re agreements signed and delivered digitally on blockchain technology. Such contracts are given when the two parties fulfil specific conditions.
A significant perk about smart contracts is that they’re faster and affordable. So, your startup can cut costs significantly if you use smart contracts.
The use of BTC and blockchain makes your business stand out.
The objective of your business is to win as many clients as possible to enable you to sell your products/services. As an entrepreneur, you’re also interested in finding the best ways of beating the competition. This is how BTC and blockchain technology come in. The two methods are innovative and ultramodern modes of payment. However, many conservative businesses haven’t embraced them.
Your business competitors may only focus on traditional methods of payment, like through banks and e-wallets. You can be ahead of the race if you introduce crypto payments. Customers will regard your business highly because it approves innovative payment methods.
Transparency transactions
An important aspect of cryptocurrency and blockchain technology is that they’re open to users. Unlike intermediaries that can play around with your resources without your knowledge, decentralized platforms are available, and users can see how settlements are taking place. Blockchain technology was established to empower people to have control of their financial resources.
There was a feeling that financial institutions are notorious for playing fast and loose with people’s investment. For example, the US housing crash happened because people don’t see what happens behind the scenes when intermediaries handle money. Blockchain and BTC remove these middlemen and allow people to control their money.
Secure transactions
Secure payment methods help businesses to stay away from scammers and fraudsters. However, many companies have lost funds through conventional modes of payment because fraudsters infiltrate the system and steal their identity. So, as an entrepreneur, it’s advisable to choose a secure payment method that’s fraud-proof. And this is how blockchain and Bitcoin technologies come in. Transactions through Bitcoin are encrypted and free from devious individuals. Furthermore, settlements through BTC are final, and chargebacks are non-existence.
No additional charges
BTC transfers are free and lack hidden charges that exist in conventional methods of payment. While processing your transactions, banks may impose considerable hidden costs that eat into your money. For a business at early stages, you may not like extra charges on your money while processing settlements. Remember, too many costs can hinder the growth of your business. BTC payments are fast and affordable and can help your business to grow faster.
Expansion of your business globally
Many entrepreneurs don’t participate in international trade because of the massive costs involved. Thanks to BTC, such businesses can now take their businesses to the global markets. Transactions through BTC platforms are faster and affordable for many companies. With BTC, you don’t need to pass through banks to receive or make payments.
No foreign exchange conversions
Companies that are involved in international commerce must convert their fiat currency to the desired foreign currency. The conversion fee at the foreign exchange markets is notoriously high, which increases the cost of doing business. With BTC, however, you get rid of these conversions because you send tokens directly to the concerned party. Because BTC is based on the P2P approach, you send money directly to the other party without foreign exchange conversions.
Hedge against inflation
Fiat currencies are deteriorating at an alarming rate. For investors, this is bad news as their investors may lose value over time. BTC can be a better method of hedging against inflation because of its strict code that has capped its production. In essence, BTC mining is capped at 21 million.
On the other hand, the production of fiat money is a politically driven process. So, governments can instruct the exchequer to print more currency pieces, which leads to inflation. While creating different currencies is meant to cushion the economy, the procedure hurts the buying power. So, people can be carrying a lot of currency pieces in their pockets, but the purchasing power of such money is low. So, a surefire way to hedge against inflation is to use BTC.
No paperwork
BTC is a digital currency that runs on blockchain. Transaction through this platform is carried out digitally without the need for paperwork. Intermediaries, on the other hand, may use massive papers while processing payment. Besides hurting the environment, the use of documents also adds to the cost of processing your transaction. So, your business can benefit a lot from BTC payments that don’t require papers.
Identity protection
Any business offering services online have a responsibility of protecting the data of their clients. However, scammers have created sophisticated ways of harvesting data online.
You can use the anonymity feature in your BTC to protect your identity and the identity of your clients. The use of encryption technology only allows your client to access your address. However, transactions through conventional methods require that you avail your info to third parties who may leak it to fraudsters.
Attracting a specific audiences
Blockchain technology has a growing list of crypto enthusiasts who want to see the sector succeed. Multiple traders, miners, and investors are ready to support businesses that approve BTC as a payment method. Your startup can get a boost from these vibrant community members.
Conclusion
Due to the multiple perks of blockchain and Bitcoin technologies, many startups are using them. Here, we’ve explored the main benefits of using decentralized technologies. Some of the main perks of blockchain and BTC technologies include faster payments, prompt cross-border transactions, identity protection, hedging against inflation, and transparency transactions. With these benefits, any serious business can’t ignore the application of these technologies.
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