“Crypto friendly businesses”
With the rise of cryptocurrency businesses are jumping into having crypto payment available for consumers. In Chile, we have Cryptocompra where companies have the possibility to have a pluginin on their e-commerce platform.
Can it be risky for businesses to accept crypto for their goods and services?
According to Forbes “According to Michael Foster, co-creator of localethereum — a decentralized Ethereum marketplace enabling peer-to-peer exchanges — “crypto enables cheap and borderless near-instantaneous transactions. This enables customers all over the world — even those without access to traditional banks, but with access to the Internet — to purchase your company's services or products.”I believe having crypto payments in a business wouldn’t hurt at all. It just gives your business an edge and reaches out to other customers, and at the end of the day, that's whatits all about right? Reaching out to as much customersavailable and hope to sell even more.
Nonetheless, in regards to risks involved with this initiative, “Foster says there are three primary risks of accepting crypto: (1) you don't know how to keep your crypto safe; you or your business are risks averse. (2) Cryptos are highly volatile — just look at Bitcoin's price chart this year; (3) the regulatory and tax schemes are confusing and depending on where your business is located”. The major risk according to me is understanding how crypto works and understanding its numbers. I'm sure for many newcomers those endless decimals in crypto can make you feel lost. This is something that I feel must be addressed because accepting virtual currencies without knowing much about it can be tricky. On the other hand, because crypto is still in its early stages there are not many who specialize in this matter so it can be overwhelmingregarding business accounting, not to mention how volatile cryptocurrency has been.
Nonetheless, I believe it’s a matter of getting used to it and trying to research for a better understanding. There will always be an adaptation stage. Its like when you are on vacation in a foreign country and don’t speak the same language and don't understand its currency it can be overwhelming trying to continually convert the money to your local fiat cash. If you have the chance to be on a more extended vacation or even live in another country, sooner or later you will adapt to its culture and its currency will become familiar and no longer be a problem, all this after going through an adaptation phase. This is what I believe will happen sooner or later with crypto.
With time things can be modified and flaws can be worked with. Considering how volatile cryptocurrency has been it surely an issue. In Chile the creators of Cryptocompra did this to address the ups and downs in the market:
“There is a guarantee fund that allows the payment is not affected by large increases or decreases in the price of Bitcoin, Ethereum and Stellar. This gives tranquility and security to the client, since he will not have a surprise in his payment".
It’s just a matter of taking risks, learning and giving it time.
Hope you enjoyed it, comment if you like.