While cryptocurrency has been a thing for quite a while now, it seems a lot more of the casual population is catching on to the trend these days and with currencies like Bitcoin reaching $45k (10/02/2021) and Ethereum slowly pushing up to $1800 (10/02/2021) it’s understandable why. A lot of Americans are receiving money from their government to cover losses during the Covid-19 pandemic, there’s a pretty good amount of the people receiving this money that are looking to invest it in something, of course there has been a huge buzz around stocks with the whole Gamestop and AMC situation, but while those names have took over the spotlight briefly, cryptocurrency has been plugging away, staying on it’s usual path. Even Dogecoin has been booming, going from $0.02 each a week ago to $0.08 each currently, thanks to the help of tweets from Elon Musk, makes me wonder how much money the man has invested in Dogecoin.
So, you may be thinking, given the hype, how could I use Bitcoin for my business or why would I? Is there any point? The short answer, yes. The longer answer though would be yes and here’s why. When the government of countries make decisions, it directly affects the value of their currency. As such given the events of the last month or so in America, the value of the dollar has slowly been on the decline, not by a lot but it has been slowly going down regardless. Meanwhile, even though the price of cryptocurrency is rather volatile, it may be better to receive payments in crypto as it may actually end up netting your more profit in the long run. So, you sell a service that’s $4000, as an example, which would be 0.91 of a Bitcoin at this point in time, now within the space of a week that 0.91 of a Bitcoin may actually be worth $5000? $6000? Who knows. In the words of a good friend of mine, Steven Brooks Ba(hons) “Gold 2.0. Avoid the tax man innit.”
However, therein lies one of the main problems. with more businesses starting to move towards accepting Bitcoin and other cryptocurrencies as a form of payment, a couple of examples, there are some USA Betting Sites that accept BTC,and just today, Tesla purchased $1.5billion worth of Bitcoin saying they will be opening up the ability to purchase their products using the crypto-giant in the near future. As these businesses open up the possibility of accepting cryptocurrency for payments, that removes a fair chunk of the taxes these governments will be receiving, which may force governments into a position where they may look into clamping down on cryptos. It’s a risk but if you ask me, it’s a risk worth taking as let’s be honest here, the government takes enough as it is without giving enough back.
So where does that leave you? Maybe you don’t want to accept cryptos as a form of payment, so you’re still able to pay the government their taxes, keep them happy I suppose, what other uses do you have for cryptos? Well, while it is a bit of a gamble, we’re basically referring back to what I said earlier about the value of cryptocurrency. If you’re willing to take a risk, once your transactions are all complete and your taxes are paid, while you’re in the good books, you could invest your profits into crypto, which MAY be a good way of increasing your profit margins even further. Of course, it’s a gamble, it’s not that different from deciding to throw your $10k profit on the Kansas City Chiefs to win next season’s superbowl. Only, if you invest in crypto you can choose to sell up whenever you want, your bet? Not necessarily going to get anything back.
Time to close this up, what would I do if I was in your situation? Well, for me, I fully believe crypto is the future, I think changing your business model to allow for payment in the form of cryptocurrencies is genuinely a no brainer. While the value of these cryptos does vary, it seems to have AT LEAST one boom a year and even if you get paid in crypto, you don’t HAVE to keep it in crypto form, you can always sell it straight away when you receive it right? However what it does do is allow your business to look like it is moving with the times. For me, if I go on a site online for shopping and I see I can pay with crypto, I see it as me dealing with a progressive business who isn’t stuck in the past of dealing with paper (plastic, I guess) currency. Even if you aren’t sure about taking that step, it’s definitely worth thinking about moving forward and there are plenty of resources out there to help you decide whether it’s the right step for your business.