World society is transformed into a hyper-connected and super-intensive system. There are 2.5 billion internet users globally (35% of the world’s population) and 1.1 billion smartphone users. All human activities are currently processed on the Internet.
In this context, cryptocurrencies will have fertile territory to take over the financial system in terms of transactions and save power.
The emergence of the digital world has brought significant changes that have transformed people’s way of life around the world, and a clear example of this is cryptocurrencies. This virtual money model has become an essential alternative for the financial system.
The interoperability of the blockchain makes it an excellent source of trust for the records that are stored in it, and they outline it as a new disruptive technology capable of substantially changing the dynamics of the sectors of the economy at a global level.
These Are The Main Points In This Article
Cryptocurrencies benefits compared to traditional currencies
Cryptocurrencies have come to stay without a doubt, they present several advantages compared to conventional money, but above all, people are beginning to turn to them; mainly the young population who find it natural to use innovative technologies and tools
Although Bitcoin was initially developed to function as an alternative to fiat currencies, there has been an increase in demand from many people purchasing the virtual currency simply as a FINANCIAL INVESTMENT, rather than using it for a transaction
Currently, most of the CFOs who are in charge of the finances of small and large companies are convinced to invest in BITCOIN as a digital currency.
Placing it as a short-term corporate asset, where the same managers can manage investments effectively, fast, and straightforwardly, is extremely attractive. If used correctly, it will be profitable in the medium and long term.
Just last year, PayPal, the world’s largest payment processor, announced that it would allow its customers to buy, sell and hold cryptocurrencies, and the demand for that service has been more significant than the company expected
Uses of BITCOIN and Others Cryptocurrencies
Blockchain technology is one of the main attractions for business finance; this type of platform offers its users the internationalization of virtual currency, the globalization of trade, and a better structure for the financial system in the world to avoid future financial crises
Some of the uses of BITCOIN or Cryptocurrencies as complementary currencies could be the following:
- International transfer of funds (thanks to the possibility of exchanging bitcoins for more than ninety monetary signs)
- As the official currency of e-commerce (purchases and sales made over the Internet)
- Small international transactions, such as remittances from people who work outside their country. Bitcoin could reduce both the cost and the time required for those payments
- Micropayments, given their divisibility and low transaction costs. To make donations to foundations, buy songs, books
- Alternative to credit cards, due to its perfectly encrypted and decentralized system
- Adoption of some OPEC countries as transaction currency for the purchase and sale of oil as a way to become independent from the dollar
The business environment has changed in recent years, and the modernization of finance continues to grow, so that bitcoin in the business world opens the way to new commercial and financial strategies, even when its operation and its attributes are not well known
The companies that can get the most out of this or other cryptocurrencies export or import products and need to use their financial resources on different continents, but also those that have their business model on the Internet, since payments through bitcoin have an essential security component. That’s why it’s a good reason to consider Bitcoin for your business.
When a company works in different markets and operates in several countries, one of the problems it needs to solve is how to move money from one place to another quickly. Financial transfers take time. You cannot move money from one country to another immediately. This does not happen with bitcoin, which is a global currency and is available immediately
The globalized world in which we live pushes companies to adapt to new technologies and financial resources. It is up to each one to decide if it operates with these currencies and how much of its financial resources it allocates to it. An investment at the right time can be very successful. However, if money is needed in the short term, losses can occur due to the volatility of its value.