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With cryptocurrencies like Bitcoin growing in value and trading at more than $23,000, 2021 and beyond represents the perfect breeding grounds for crypto use and acceptance in all kinds of business models.
In fact, the explosion of cryptocurrency can make a significant impact on businesses all over the world. For Colorado startups and established endeavors alike, adopting crypto use can place you on a world stage with a competitive advantage.
Here we explore how the crypto boom will affect your business model and how you can get ahead of the crypto wave with some helpful strategies.
The Rise of Crypto
While cryptocurrency has been known for its somewhat volatile trajectory in the market, the trend of crypto has also maintained consistent gains over time. This has given rise to the spread and acceptance of crypto into all kinds of previously untouched places in markets. Even crypto ATMs are becoming more commonplace in Colorado with the recent addition of eight Coinsource machines.
With Bitcoin trading at record highs as of December 2020, nearly every mind in business is turning to ways they can cash in on this lucrative and convenient tool. Even PayPal has recently made it possible for users to buy and sell cryptocurrency on its highly popular platform. This comes with great timing as world governments act to conveniently mitigate the damages caused by the COVID-19 pandemic.
In a press release, Dan Schulman, president and CEO of PayPal, said, “The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly.”
Our worlds, more connected through global trade than ever before, need solutions like cryptocurrency to power transparent, efficient, and secure digital transactions. Cryptocurrency has built a name for itself in the global economy by offering just that.
Cryptocurrency is on the rise, but with the integration of this new digitized trade system comes all kinds of business effects and changes. You can’t expect your business model to stay the same in the course of these developments, but knowing what to look out for can be difficult.
How Crypto Changes Business
As a peer-to-peer currency, crypto changes the ways we bank and conduct business transactions. This means that all kinds of cost-saving and business growth opportunities can emerge for companies that take a thoughtful cryptocurrency approach. From trading seamlessly between new and complicated industries to mitigating risks inherent in global trade, crypto is here to change your business model.
First, the decentralized nature of a currency that operates on a blockchain makes it perfect for the global marketplace. The system eliminates the complexities of banking across borders by removing the need for middlemen and restrictive regulatory obligations. This means regardless of what you do or offer as a Colorado-based business, you can interact with your suppliers or buyers with no fee transactions and greater convenience.
This is especially useful when managing trade across industries that still experience regulatory discrimination. Cannabis is one such industry, now valued at around $1.5 billion in Colorado alone, that has limited access to traditional financial institutions. With cryptocurrency, businesses can trade, invest, and grow with opportunities in markets like cannabis without having to juggle complex relationships with major financial institutions.
Blockchain even has the power to change the way we borrow and lend money. Because of its decentralized secure access, leaders can split payments into small loans available to borrowers while conveniently maintaining records. This means that borrowers can use blockchain for safe, cheaper practices like microlending that can help them repair credit and consolidate debt through cryptocurrency. Lending plus Bitcoin is itself an opportunity Colorado entrepreneurs can take advantage of.
With all the possibilities of cryptocurrency for your business model, you should be exploring the playing field and the strategies that will lead to effective crypto integration.
Strategies for Effective Crypto Integration
The success of your crypto usage will depend on how well you reinforce your business model to accommodate this new transaction method. But don’t worry: this doesn’t have to be nearly as complex as it sounds. Cryptocurrencies and the many platforms that already exist that host and utilize them make business integration simple.
Your job, then, is to make sure you are current with all local and federal laws regarding crypto usage before you set out. After that, you can look for helpful tools that can allow you to maximize your crypto approach from the beginning.
These five strategies will help give you a baseline for effective crypto adoption for your business model — whatever that may be:
- Explore tax laws in your area and keep records of gains and losses that occur with crypto.
- Leverage existing platforms and tech that already make crypto payments easier — like PayPal or BitPay.
- Allow for your crypto integration with a budget calculator.
- Launch your crypto endeavors in a burgeoning hub for global brands.
- Constantly be on the lookout for new avenues of opportunity and investment through crypto.
By following these strategies you can set yourself up for success amidst the crypto boom.
Businesses in Colorado and across the world can reap the rewards of this low-cost transaction system as it increasingly gains acceptance and popularity in global markets.
Whether you are considering cannabis investment or want to expand your ecommerce store across international lines, crypto has benefits that can revolutionize your business model.
The future is in cryptocurrency. Plan for yours by considering crypto in your approach to business.