Future Investment In Cryptocurrency Market
The job of a business consultant is to increase the revenue of a business and recommend suitable ways to meet the challenges. A business consultant improves the performance of the company's management and helps the company achieve its desired goals. On the other hand, if there is a major market opportunity for the company in the future, then a business consultant recommends the company some suitable way to use that opportunity. Every company wants to expand its business and always implement some innovative ideas to help the company succeed. However, the reputation of a company depends mostly on its financial success. In the era of globalization, it has become possible to expand any business all over the world. Cryptocurrency has gained popularity as a means of business transactions. Various business firms have expressed interest in taking cryptocurrency as a means of transaction. Cryptocurrency can be considered as a major business opportunity for the future.
This Article Explains
- Cryptocurrency Market
- Benefits of Bitcoin as Cryptocurrency
- Drawbacks of Bitcoin as cryptocurrency
Cryptocurrency market is a new market that has high potential in the upcoming years where businesses can invest to get high returns. Many of the top companies have started investing in cryptocurrency market and have adopted the block chain technology. Cryptocurrency can be defined as a digital currency (Makarov and Schoar, 2020). The transaction process that is done through cryptocurrency is protected by the technology called cryptography. Bitcoin is the most popular among various cryptocurrencies. Other cryptocurrencies are Ethereum, Ripple, Cardano, NEM, LiteCoin, IOTA, etc. In general, Bitcoin is a type of cryptocurrency that allows money to be exchanged or transferred without any third-party intervention. Financial transactions through Bitcoin are completed through a private computer network known as nodes. It is linked to a sharing program known as the block chain. When Bitcoin enters the market, it challenges centralized currencies, which are controlled by the government (Ji et al., 2019). Bitcoin is basically a peer-to-peer cryptocurrency system, which has hit traditional transaction systems. Block chain technology makes bitcoin and many other cryptocurrency transactions possible. It depends on the financial transactions of the people. It is important to mention that all financial transactions are recorded through block chain technology.
Benefits of Bitcoin as Cryptocurrency
The business can archive great success if Bitcoin is taken as a means of trading. Therefore, to make the business more successful, we should focus on the benefits of using Bitcoin. If the financial transactions of the business are not monitored by any central authority, then the business can be managed more efficiently. Block chain technology gives a business more advantages (Borri, 2019). Block chain technology has universal acceptance because it allows financial transactions to be completed without the control of a central authority like the bank.Cryptocurrency can be used to complete business transactions faster than banks. If the business transaction is completed quickly, then the business's performance will also increase.
- The advantage of using bitcoin as a means of financial transactions is that it provides users with more autonomy. Customers enjoy greater freedom of their financial transactions using cryptocurrency. It means customers do not have to rely on any intermediary authority like the bank in their financial transactions. If an organization completes financial transactions through cryptocurrency, it can facilitate the banking fees of the organization. Bitcoin users do not have to bear the cost of minimum balance fees and retimed deposit fees.
- Third-party control in business transactions creates many difficulties. Bitcoin's biggest advantage in business is that Bitcoin can be controlled by only customers. No third party can control Bitcoin without user permission (Katsiampaet al., 2019). It is worth mentioning here that when individuals used FIAT currency, there were risks like credit card chargebacks.
- Cryptocurrency handling is easier to handle than handling bank accounts in business transactions. Bitcoin is better in many aspects than traditional bank accounts. Because bitcoin is the only user responsibility. No third party can freeze the user account. It is a great benefit to Bitcoin users.
- Users can sit anywhere in the world and complete business transactions through cryptocurrency. If a person makes a financial transaction through Bitcoin, then the person has to pay very low transaction fees. A person can also complete his or her financial transactions while sitting in a coffee shop.
- Cryptocurrency plays a vital role in protecting the identity of businesses. Bitcoin can be used to quickly complete financial transactions. It also protects the user's privacy even if it completes transactions quickly. One of the main advantages of Bitcoin is that it is a decentralized currency (Corbet et al., 2019). It is free from the monetary policy of any country in the world. A person can easily convert his FLAT currencies to Bitcoin and keep Bitcoins stored in his digital wallet. If a bank is a victim of bankruptcy, then it negatively affects the bank's customer fund. But bankruptcy cannot affect Bitcoin in any way because it is a decentralized currency. As a result, traders are very profitable in their business transactions.
- For decades, traders had to face various difficulties in sending money abroad for a product or service. The amount of fees banks were demanding to send the money would have significantly reduced the profits of the traders, but the cryptocurrency's borderless nature can quickly send money abroad at a much lower cost.
Drawbacks of Bitcoin as cryptocurrency
Bitcoin has many advantages in business but there are also some difficulties. The difficulties of using Bitcoin should be judged in particular before bitcoin is taken as a means of business transactions.
- There are some risks in buying services and products using Bitcoin as using Bitcoin can cause financial losses to traders in many cases. Bitcoin's biggest problem is the instability of Bitcoin's value (Fry, 2018). Bitcoin's value sometimes increases and sometimes decreases. So, there are some risks to the user in using Bitcoin.
- In some cases, cryptocurrency is also lacking in acceptance. Cryptocurrency is not accepted as a means of payment everywhere. It is important to note here that cryptocurrency is not considered legal tender in the United States. Cryptocurrency is not considered a means of financial transactions in many foreign countries. So, if a trader wishes to do business all over the world, then the trader will face some difficulties in dealing with cryptocurrency.
- Businesses may face huge business losses due to a small mistake. Transaction errors may occur due to some user mistakes in transactions through cryptocurrency (Aslan and Sensoy, 2020). If a person accidentally enters the wrong wallet address, then he or she may be in a financial loss.
- Hacking can reduce the profits of traders. The biggest problem with financial transactions through cryptocurrency is that if the user's digital wallet is hacked for some reason, users can suffer a huge financial loss. In many cases, user passwords can be stolen or hacked by a trick. This could result in a loss of up to a million dollars in business transactions.
- One of the biggest disadvantages of cryptocurrency is that it has no refund or cancelation policy. If a trader accidentally sends money to another wallet instead of his own client's wallet, the trader will not get his money back in any way. This has led to difficulties in dealing with many traders.
Bitcoin has a huge market value. Bitcoin's annual returns are much higher than the stock market and other assets. Many businesses are accepting Bitcoin as a means of business transactions. It is important to mention here that the location-based exchange rate cannot affect Bitcoin in any way. Many people around the world are interested in Bitcoin because bitcoin is easier to deal with. Bitcoin is being used as a means of transactions like FIAT in the United Kingdom. It is important to note that Japan has taken Bitcoin as a means of transaction in the tax policy of its own country. If Bitcoin is accepted as a means of transaction, then it will be possible to do business with any corner of the world. Naturally, the organization's customer base will grow. This will result in a huge financial success. In order to sum up, cryptocurrency can be considered a future currency. Therefore, if traders implement cryptocurrency in their organization, the organization will have a great reputation in the future.
Recommendation of Investing in cryptocurrency
A Businessman always faces some new challenges. Cryptocurrency can be defined as high risk and high return game. If, as a businessman, it seems that accepting Bitcoin as a means of business transaction will increase business profits, then bitcoin should be taken as a means of trading. A successful businessman always spends time looking for ways to expand his business. In this case, cryptocurrency can be considered a way of business growth. Every businessman should take risks in life that will bring him a lot of success. However, Cryptocurrency has some limitations as a new currency. Therefore, there are still several steps to take to improve cryptocurrency. If a trader takes certain precautions in using cryptocurrency, then it is possible to minimize some risks in business transactions. Some economists have expressed the view that cryptocurrency is about to make major changes in the future. Cryptocurrency has been successful in solving various business problems through the use of the block chain and with the help of various technologies. The cryptocurrencies that are coming to market in the future are more advanced and secure than the current cryptocurrency. In this case, Ethereum can be mentioned as an example. Every trader has to be more careful during every important business transaction so that no mistakes are possible in the business transaction.