How will cryptocurrency affect businesses in the future?

The Emergence

Cryptocurrency which was invented in the year 2008 by an unknown group or person known as Satoshi Nakamoto had its usage kicking off in the year 2009.

Overtime we’ve seen the currency evolve with many countries and firms adopting it as a legal tender. Many are still holding back in accepting cryptocurrency as droves of men still believe that sooner or later, the crypto world will crash and we will head back to total reliance in physical currency.

It’s Limiting factors

Stability in the value of crypto currency has always stood out as a factor that discouraged the acceptance of the cryptocurrency.

The early days of the currency was promising as its value skyrocketed. Most people at that time saw potential in it, but as the months turned into years, there was an overturn in the currency hence giving so many a grip of fear and to a greater extent posing  question as to whether the non-fiat currency has a place in the future.

Another factor that has been an object of concern to many countries is the amount of energy used in mining cryptocurrency. The energy used in crypto mining specifically bitcoin is estimated to be about 91 tetra watt hours of electricity yearly. It is more than seven times the electricity used by all of Google’s global operations.

In recent developments, cryptocurrency has achieved a high level of stability, even much more than most physical currencies and also many countries have devised measures to regulate the energy consumed in mining of cryptocurrencies hence it might not be wrong to suggest that cryptocurrency is on a ground breaking journey.

Possible effect of crypto on businesses

• We all know that as a currency, crypto is not a tangible cash, it can’t be handled like Dollars, Pounds, Naira and such alike; this attribute offers it a measure of secrecy and anonymity which to an extent is an advantage. Cryptocurrency transactions are not handled by financial institution which has resulted in the currency creating a palatable platform for any business transaction that requires topnotch secrecy. Companies that will require the least exposure and would prefer to run in a clandestine mode might have found their means of exchange which is cryptocurrency.

• Most of the financial institutions that serve as middle men between business and the customer base have failed in reliability, consistency and even delivery speed, but with just a smart phone and data, cryptocurrency can be managed with ease, having little or nothing to do with neck-cutting charge rates of financial institutions. This single factor will be a striking force in adoption of cryptocurrency by businesses in the future.

• The stress of currency conversion from one to the other say pounds to dollars and vice versa by foreigners has been solved by cryptocurrency because of its universality. With their crypto wallet, travelers are now covered to make business transactions anywhere in the world, no exchange required.

In summary, the discovery of cryptocurrency has proven to be a tilt in the positive axis in business and economic sector. Though crypto has never gotten to a point where it can replace the fiat currency completely in business transactions. Nevertheless  banking on recent developments one might be tempted to say that its total takeover as means of transaction may be imminent. It might be a good idea for businesses at this stage to plan towards accepting this privacy coin Cryptocurrency.