Cryptocurrency is a digital method of exchange that uses a digital ledger called a blockchain to enforce security of transactions. Cryptocurrency is not owned, backed, or regulated by any government or financial regulating organization. As of today there are more than 16,500 recognized cryptocurrencies with over 9,600 considered active. Each one is a little different, but all share the same basic and secure cryptocurrency architecture. It is accepted by Tesla, PayPal, Mastercard, Microsoft, Overstock, and Home Depot to name a few companies.
Simply put, crypto opens up opportunity for small business. Crypto offers small business with a new method for accepting payment and greater interoperability with many other types of asset classes and liquidity. It can provide some insulation from economic uncertainty and downturns and has a bonus of being a speculative investment method as well as an immediate payment handling medium. Crypto is cheaper and faster than conventional payment processing and gives businesses access to new types of business. There are 1.7 billion people worldwide that do not have banking options that can readily use crypto. Crypto today is convenient for customers to use, opens sales doors to a global worldwide market and gives merchants a global reach for their services and goods.
Crypto is not without risks as it is a relatively new. It can be technical to work with and requires a digital wallet to use. Crypto is also volatile and has an unpredictable value. Since crypto is new the exploits from cyber criminals are yet to be discovered. Also yet to be discovered is how global governments will handle an unregulated monetary system they cannot control.
Dispute the relative few drawbacks and risks, crypto represents a major new opportunity for small business that can be utilized now to increase reach of goods and services and a wide pool of customers. Crypto is not going away and is here to stay: Small business needs to embrace this new way to handle payment as it is one technology that further levels the playing field for small business to compete with the big players.