It’s still true to say that the Jury is still out on cryptocurrencies. Finance and Business gurus from Warren Buffet to Elon Musk have commented both negatively and positively on them, and the second-largest economy in the World, China, has made transactions in them illegal.

But all this is window dressing what it often boils down to is:

  • Do cryptocurrencies add value?
  • Can they make my business more profitable?
  • How can I accept payments using them?

Cryptocurrency in context

The relative strengths and weaknesses of cryptocurrencies have been well-discussed in the media. Some analysis has been helpful, others sensationalist, and others still no doubt written with a particular agenda in mind.

Wild price volatility has made some investors very well off, while others have lost their shirts, there are also other downsides such as, cryptocurrencies do not appear to produce anything when compared to investing in stocks that may offer dividends and other advantages. Also, the mining of cryptocurrencies appears to be adding to the environmental concerns of many, due to the immense amount of electricity used.

Cryptocurrency and your business

But what does this mean for small business owners reading this blog? The critical question is whether you would accept cryptocurrency as a means of payment?

Firstly, this is not an area to expose your business to without conducting full due diligence. Not all cryptocurrencies are created equal, and some are much riskier than others. Bitcoin is well established, but that does not necessarily mean it fits within your business’ needs.

These concerns are multiplied in the case of newer, less well-established, entries into the market. The high price volatility makes it a tricky investment to predict for all.

That being said, some businesses are successfully accepting cryptocurrencies in a way to enhance their profitability and to support growth.

Cryptocurrency in practice

For some businesses, accepting cryptocurrencies fits within the company’s ethos, particularly those with clients who are technologically sophisticated and already trading and transacting business in cryptocurrencies. Some businesses see the benefits of using cryptocurrencies more concretely in their bottom lines.

Whereas credit card and PayPal transactions can attract high fees that eat into profits, goods and services can be exchanged for cryptocurrencies without such detrimental fees.

Is it worth the risk?

For some business owners the savings on fees is worth the risk, however, few would deny these new currencies should be used in a balanced way within your business’ operations.

For some accepting payment in crypto and then holding on to them, longer term, for future potential gain is a good strategy but we advise that care should be taken to ensure cash flow of your (FIAT or real currency) is not negatively affected.

How do I accept Cryptocurrency as payment?

In practical terms, accepting cryptocurrencies requires an account with a bitcoin management service, which may require providing ID to unlock the full scope of options.

To offer crypto as a means of payment to your clients you need to send a link to a payment portal, which can be in QR format. Alternatively, it is now possible to integrate crypto payment with most websites and apps. It is then up to you what you do with your cryptocurrency, either keep it in your e-wallet for your own purchases or if the market price is right, convert to hard cash!

Cryptocurrency and the future

No one has a magical crystal ball to determine how cryptocurrencies may help or hinder small business and individual entrepreneurs, so common sense and due diligence ought to prevail. Whilst there is reason to be cautious, some businesses are successfully using cryptocurrency within their business model, income streams, and future plans.