The recent growth of cryptocurrency and blockchain technology has been fueled by speculative fever. A nonprofit organization called the Foundation for the Study of Cycles explains how recurring patterns in societies and economies are the cause of recurring price swings. The emergence of more big players validating crypto’s potential has also boosted public interest. In particular, the upcoming ICOs are expected to spur growth. Regardless of the reasons for crypto’s recent popularity, it’s an opportunity that shouldn’t be missed.
Unlike traditional currencies, cryptocurrencies do not have a central authority that can control them. Rather, they are decentralized and are not regulated by any country. As Lord Acton once said, “Power tends to corrupt, and absolute power corrupts absolutely.” As a result, cryptocurrencies aim to distribute power among many people and across the entire network. Even though they are not a substitute for cash, a cryptocurrency-based currency can still be used as an alternative to cash.
Aside from reducing costs, cryptocurrency may provide access to new demographics. Because it is decentralized, it can be easily transferred from one account to another, enabling real-time revenue sharing, transparency, and back-office reconciliation. In addition, it can also help a company position itself in the emerging space. Moreover, a blockchain-based currency can also provide access to new liquidity and capital pools. As such, a successful blockchain implementation may allow the business to reach new levels of growth.
While traditional cash gives control to central banks and governments, crypto offers more freedom of choice. For example, it enables a company to conduct back-office reconciliation, enhancing transparency and facilitating real-time revenue sharing. Additionally, it can be used to reach important clients and vendors. With its increasing popularity, crypto can also serve as a balancing asset to traditional cash, which can lose value due to inflation. Furthermore, it can also become an investment, allowing companies to tap into new asset classes.
Because cryptocurrency isn’t tied to a specific country, it’s easier for individuals to use it for transactions. Some cryptocurrencies can also be used to fund an organization’s social media accounts. For example, an employee can use cryptocurrency to purchase land, sell avatar clothing, or even keep track of its own cryptocurrency value. It’s a global platform with the ability to transact in multiple languages. And if you’re traveling abroad, it can also be used to fund projects.
As with any new technology, crypto is often used as a balancing asset to prevent a company from losing money. Some companies use it to facilitate payments and keep the cryptocurrency off the books. This might be the easiest way to get started with the digital currency, and it will require minimal changes across corporate functions. But the broader use of cryptocurrency goes beyond purely financial purposes. In the case of the former, it’s a medium for speculation.