Virtual money is increasingly present in the Economy, that’s why all small and large companies should know what exactly is bitcoin (the most-used virtual currency), is and what are its advantages. We know that despite its growing popularity, the bitcoin system is still incomprehensible to much of society. Nevertheless, we encourage all companies to be well inform to find out how cryptocurrency can help them integrate less expensive means of payment, find new customers or receive financing.
Bitcoin is one of the existing virtual currencies, but also the largest and safest (in terms of transaction volume). In any case, it is a decentralized and intangible currency, that is, it does not exist physically and does not depend on any institution. Who exercises control then? Own customers and programmers.
There are no intermediaries, transactions are direct between users. Each of them manages their bitcoins in a virtual wallet, and when they make a transaction, it is record in a public database: the blockchain. Thus the opportunity to hijack transactions by third parties becomes very difficult, if not impossible. Basically, transactions on cryptocurrencies are free from piracy. It is a completely decentralized secure transaction. All parties involved know when a transaction is made.
But in addition, some of the users are responsible for verifying transactions, recording them in the account book, and ensuring the proper functioning of the network: it is the miners and programmers who ensure security in exchange for bitcoins.
What are the advantages of this currency?
It is a global currency, and any user is free to send any payment to any part of the world instantly. In addition, the commissions are low (no intermediary being necessary), the use of open-source guarantees transparency, and because of its decentralization, no one can modify the system as they see fit.
In addition, for companies, the use of this type of cryptocurrency gives a lot of visibility, since it is place on specialize sites that stand out all over the world, allowing them to reach new customers. Likewise, these currencies are useful for companies that operate in different countries, since with a single platform for payment and exchange of virtual currencies, they can reach any market. Initially, the average markets reach by cryptocurrencies were digital markets such as the game market, software market, and the like. But as their influence increases, there are more markets to explore, for example, trading markets where anyone can get 1k daily profit.
But its use also has disadvantages
This type of currency is still unknown to many people, so its value is limit. Its low use on the market makes its price volatile, the system is still under development, and it is illegal in some countries such as Argentina or Russia. Not to mention that a better cryptocurrency can always appear, and since it is not official, we are not immune to any scam.
We believe that it is important that all companies closely follow the evolution of this currency, to stay abreast of new payment systems, and perhaps adopt them if this brings profits. Only companies ready to adapt to our current times will be able to consolidate over the long term by achieving Managerial Excellence. Many financial experts predict that in the next 10 years, it will be difficult to find a company that is completely uninvolved in crypto transactions. Yes, crypto will not really be able to replace the role of traditional money and gold, but its penetration will be even more massive, representing the development of digital technology itself. Hopefully what has been explaining in this article was useful. Thanks for reading and have a great day.