Why Blockchain Technology and Cryptocurrencies Is The Need of the Hour
No matter what, the next big thing in the history of blockchain technology is going to be the tech’s most prominent companies dominating the industry.
The world just entered another year of blockchain technology. While Bitcoin became the blockbuster, the decentralization space has become more attractive to investors and businesses.
The demand for digital technology, digital wallets, and digital currency is rapidly growing. Businesses are looking for a more advanced blockchain market that helps them create a more secured and transparent space for their customers. Security, privacy, traceability, and scalability are the high priorities of every business.
The Big Players into Blockchain and Bitcoin
Big companies like IBM Corporation, Microsoft, Amazon are making gigantic steps towards the blockchain and implementing numerous technological strategies to boost their footprints in the market. Amidst the pandemic, the companies picked up huge investments to overcome the broader economic crisis.
“Global blockchain market is expected to account for a CAGR of 60.8% in the forecast period 2020 to 2027, “ market analysis and insights by Data Bridge Market Research.
On the other hand, like never before, Bitcoin boomed, rising 400% over the year, topping $50,000 for the first time in early 2021. Thanks to Tesla CEO Elon Musk for leading Twitter for Bitcoin.
Also, we’ve heard Tesla announcing in an SEC filing that it bought $1.5 billion in Bitcoin. The company stated that it is aiming to accept payments in Bitcoins. Musk’s tweet and Telsa announcement gave a rocket ride to cryptocurrencies. The prices of currencies, especially Bitcoin, took a massive jump. This is resulting in a new history witnessing drastic changes in the global financial system and crypto market.
Now investors and entrepreneurs are in the chaos stage, whether to follow the big firms and incorporate blockchain technology to replace cash with crypto?
But then, Microsoft co-founder Bill Gates stated, “My general thought would be that if you have less money than Elon, you should probably watch out,” in an interview. This statement almost sounded like a caution to the crypto investors and newcomers.
However, there are specific points that you need to consider before integrating blockchain or Bitcoin into your business.
Beware of the Volatility
You should definitely know that the Bitcoin price deserves a lot of attention since Bitcoin has had a big run — the ups and downs of its price (subject to the vicissitudes of Musk’s mood) and other financial influences. So your business should be ready for less risk and decent profits. Better not the reward side; keep an eye out for unpleasant surprises of Bitcoin prices. Your business model should be ready to absorb the hit of it.
For instance, The Midvale, a Utah-based online retailer, accepted Bitcoin as payment since 2014. At the same time, the company converted 50 percent of the Bitcoin sales revenue in crypto to dollars. So there are chances of both profits and risks to your business table.
Hence, cryptocurrencies are a great way to deal with the expensive processing fees, middlemen factors associated with transactions. At a later point, you should also consider unexpected downside risks related to cryptocurrencies.
Consider your Business Model
To a great extent, you should think if the Bitcoin payment method works for your business model or not. Although Bitcoin is climbing up the ladder, it is not scalable in the way Visa or Mastercard is! That means it is not just in a stage to run the U.S. economy, at least right now.
Your business may have to invest in software systems that support your business transactions. Companies can sign up for payment processors such as BitPay that allow e-commerce businesses to accept Bitcoin as a transaction. Etsy, Shopify are already using this technology.
Cryptocurrency: The Future
Due to its decentralized nature, transparency, traceability, and instantness, and exclusively for being backed up by blockchain technology, crypto is gaining all the world traction.
Cryptocurrency investment can be risky. But it is going to be the financial future of the world, say experts across the globe. The crypto world might remain as the primary financial instrument and the common currency in the future.