How is crypto changing the business world

Anyone who thought cryptocurrency would be a flash-in-the-pan fad, will no doubt have already accepted they will need to eat their words: the decentralised system of digital currency has taken off in a way very few predicted. No longer the preserve of in-the-know traders, investing in and buying and selling crypto is becoming more and more mainstream, as is the acceptance of it as a legitimate form of payment.

So as the phenomenon beds into contemporary culture, how will it impact the business world? We take a look at some of the ways it’s changing things, for better or for worse.

Improving security 

A key appeal of crypto is the fact that it utilises blockchain technology. Where normal financial data is stored on computers that rely on servers that can be vulnerable to hacking, crypto data is instead stored in blocks across a network of thousands of computers, making it immune to hacking. It’s also secured with end-to-end encryption, meaning it’s protected from any unauthorised access. Plus, the information does not have to pass through the hands of a third party, and information can be anonymised as special permission is required to access each transaction. This is a real game-changer for how day-to-day business is conducted, offering unmatched security and privacy.

Paying employees

A major potential benefit to the business world of crypto could be the ability to pay employees direct using the currency. Increasingly, large companies have employees based in countries all across the world in different offices or working remotely. Paying salaries can therefore become a complex and costly process due to the fees and time needed to exchange payments into different international currencies. By bypassing banks and using Bitcoin instead, however, transactions across borders can happen instantaneously, with minimal or zero fees and with full transparency, as Bitcoin transactions are public. Another growing trend is giving employees equity shares in the form of a company cryptocurrency.

Mainstream adoption

One thing that has blighted the reputation of crypto from the get-go has been the distrust of it as unreliable or even consideration of it as a scam. However, a huge turning point has been the backing of it by some of the biggest company names. Prime examples are tech titan Elon Musk, who bought $1.5 billion worth of Bitcoin for Tesla and his company’s high-end cars can now even be bought with the currency. Paypal, one of the trailblazers in border-less digital transactions, also got on the bandwagon by allowing users to buy and make transactions with currencies such as Bitcoin, Ethereum and Litecoin. Even Visa and Mastercard, the traditional names in the payment platform market, have both openly endorsed crypto and are beginning to allow customers to make transactions using the currency. With such big players signalling their acceptance and practical use of crypto, you can reasonably expect it to open the flood gates to other platforms and business owners to follow suit.

The editorial unit