With the EU poised to rollout new cryptocurrency regulations that some commentators believe might lead to at least short-term turbulence given the uncertainty factor, you should be thinking about whether or not digital currencies like Bitcoin make sense for your small business.
In the case of the European regulator, the hope is to introduce regulations to prevent criminal elements from using cryptocurrencies in money laundering schemes. But, make no mistake, cryptocurrencies are here to stay, and it’s a subject you should seriously contemplate.
What is Cryptocurrency?
First, off, you might be wondering what, exactly, a cryptocurrency actually is. Simply put, it’s another term for a digital currency, and it uses cryptography to track purchases and transfers on something referred to as a blockchain A blockchain is a public ledger of all transactions. While Bitcoin is the most popular and widely used digital currency, other popular types of cryptocurrency include Ethereum and Litecoin.
Also consider that cryptocurrencies are starting to go mainstream. In fact, CNN reported last December not only that investors would get the chance to trade Bitcoin futures on the Chicago Mercantile Exchange and the Chicago Board Options Exchange, but also that Nasdaq could join that list in 2018. So, it’s pretty clear that cryptocurrencies like Bitcoin are not a passing fad.
Yes, Bitcoin is definitely legitimate. And it has already won over some big industry players such as Microsoft, Paypal, and Dish Network, all of which accept Bitcoin. So, if these juggernauts transact with digital currency, you should consider whether or not cryptocurrency would make sense for your small business.
Risks & Benefits
It’s important to understand, should you decide to get set up to accept payments courtesy of digital currencies, that there are risks and benefits of doing so. It can be argued, however, that the pros outweigh the cons by a significant margin.
If you want to learn more about the benefits and risks of cryptocurrencies as well as figure out how to actually go about getting set up for digital currencies, check out the following infographic from Mulligan Funding for all of the details: