A cryptocurrency is basically a digital asset that was created to work as a medium of exchange and as a store of value. Cryptocurrencies make use of the cryptography technology to ensure that each network is secure from external attacks. They are built on the blockchain technology which in itself is a distributed ledger that stores relevant data in a secure and permanent manner. Currently, there are over 1300 cryptocurrencies in the world and this increasing development and launch of these platforms have been attributed mostly to the popularity and the return on investment they offer. Bitcoin sits as the most valued cryptocurrency based on market value and total market capitalization. This is actually because it is the first crypto platform to be developed and launched.
What Cryptocurrencies Can Be Used For
1. They can be used to buy goods;
Prior to this time, it would be extremely difficult to see merchants or businesses that accept cryptocurrencies as a form of payment for goods and services bought. With the world evolving, these cryptocurrencies right now have been accepted by over 200 offline and online merchants around the world. The Bitcoin’s BTC token can be used to pay for hotel rooms, can be used to buy flight tickets, can be used to purchase luxury homes and recently, they can even be used to acquire a college degree.
While Bitcoin’s BTC token happens to be the most adopted, top altcoins like Litecoin, Ripple and Ethereum have all seen an increase in their adoption rate over the last couple of months.
2. They can be invested;
It is believed by most people that cryptocurrencies are the hottest investments any investor can make. This is true, the price volatility feature of these digital currencies is why they are way more profitable than the regular financial investment you can make. Bitcoin which happens to be the most valuable has seen a considerable increase in its price over the years. As at December 2017, Bitcoin was valued for over $19,000. Investing in Bitcoin and cryptocurrencies in general will definitely bring greater return on investments when compared to other investment choices you can opt for.
3. They can be mined;
These are the most important people on any cryptocurrency network. These miners contribute their quota to the success of these network through their computing power that is used to solve complex mathematical problems. Solving these complex problems is important because it helps confirm transactions on the network as well as record the transaction on the blockchain technology. For verifying or confirming these transactions, these miners are rewarded with crypto tokens.
To explain better, what a miner does on the Bitcoin network (or any other crypto network) is to verify all transactions then receive rewards in form of BTC tokens. Mining could be another form of investing, the difference being that instead of buying these tokens from cryptocurrency exchanges, you will have to purchase mining hardwares in order to solve these complex problems.
4. Can be used as a payment method;
Business owners who are looking for better service and increased sales would opt to add cryptocurrencies as a payment method. The growing need for cryptocurrencies is why it is necessary that all businesses integrate them into their payment methods. Currently, there are over 1800 crypto ATM’s in over 58 countries. Businesses seeking to integrate cryptocurrencies as a payment method can accept these payments through touch screen applications, hardware terminals and wallet addresses via the QR (Quick Response) code. One hydroponic wholesale company in the UK Eden-horticulture happens to be one of the latest companies to start accepting BTC tokens as a payment method.
Benefits Of Adding Cryptocurrencies As A Payment Method
1. Lower fees;
Businesses with the credit card payment method are charged way higher. When a transaction is carried out using credit cards, the merchant or business is not the only one involved, the bank and the credit card company are also involved. Each of these involved parties charge stipulated transaction fees for their services. On an average, transaction fees for credit card payments could rise to over 5%.
Cryptocurrencies eliminate the need for middlemen, so every transaction is simply between the sender and receiver, thus ensuring lower fees. All cryptocurrency transactions are charged between 0.1% to about 1%. Adding cryptocurrencies to your payment options would definitely mean that you save loads of money and more in the long run.
2. Security and privacy;
Credit card payments and other payment options like PayPal have become dens for scammers and hackers. These people steal the information of customers and use them for several criminal activities. All cryptocurrency transactions are secured and private. Users are not required to fill in personal data, so their information is not tampered by anyone. Most individuals who seek for better privacy have opted for the privacy tokens like Monero, Dash, Verge etc.
3. Accepted globally;
Most conventional payment methods are not accepted in all parts of the world. Also, most charge double of the regular fees when you carry out transactions in certain countries. One of the main features of cryptocurrencies is that they are globally accepted, meaning that people from all over the world can buy and make payments easily with them.
Also, these cryptocurrencies are decentralized meaning that users have all the right on the network. They are not regulated by the government and they give your business an amazing international appeal. Why put your international customers through the stress of having to convert their local currencies to a foreign one before they are able to make payments? You can save them the stress by opting for cryptocurrencies as a payment method.
4. They are fast;
On an average, it would take your conventional payment method time before transactions are verified. It could even take hours or days for international transactions. Cryptocurrencies are known for their ultrafast transactions. Over 500 to 1000 transactions can be processed in a second by these crypto networks.
With these benefits mentioned, integrating cryptocurrencies as a means of payment for your business would definitely improve your business. Also, it would make things easier and faster for your local and International customers.
Eden Horticulture is the first hydroponics wholesaler who now accepts Bitcoin and other cryptocurrencies as a method of payment www.eden-horticulture.com or contacts us on 01952 455725 to find out more.