Technology and business are closely linked. Innovation and adoption of cutting-edge technologies are stopping from being an option to becoming -almost- an obligation. Due to this, a lot of companies are asking themselves a question that could change the way the industry moves: Should my company accept cryptocurrencies as a form of payment?

A brief of history

To understand the pros and cons of this question, we must go back to the history of cryptos, but since we have more than 2000 different currencies, we will only talk about one: Bitcoin (₿).
In November 2008, Bitcoin appeared for the first time in response to the economic crisis and people's loss of confidence in the banks. The idea was to create a decentralized digital currency, that could be used for transactions on the Internet without the need for intermediaries.

For almost 10 years, transactions with Bitcoin and other cryptos, that came later, were just a hobby for enthusiasts and investors, who were not afraid of market volatility, while the general public believed, these currencies were a scam or product of illegal businesses.

All this changed a few years ago when the threat of a fall of capital values such as gold or oil made investors look for a new way to secure their money and diversify their capitals. Then, the Covid-19 pandemic and the destabilization of monetary values put cryptos as an investment alternative, making it more visible for the public.

Pros and cons of using cryptocurrency in business

Man in garden using laptop — Photo by Ketut Subiyanto

Now, let's answer the question: Should my business accept payments in cryptos? Opinions on this question differ, even among economic gurus and top financial advisors. While some believe cryptos are the salvation of the worlds' economy, others consider them a bubble doomed to fail due to its volatility and lack of support.

This article will remain neutral and only mention the pros and cons of including cryptos in your payment methods and give you some advice on things you should consider before accepting payments with digital currencies.

Pros

Be the first: The current projections for cryptocurrencies predict a bright future and wide acceptance. Becoming an early adopter can be a great way to reach a new market of crypto enthusiasts and do great marketing.
Low commissions: We already mentioned that cryptos are decentralized currencies; therefore, no bank entity regulates transactions, making shipping commissions, especially internationally, much cheaper than through banks with official coins.
Security: Blockchain transactions are very secure, so it is almost impossible for someone to commit fraud during a transaction. Likewise, all transactions remain in a public record for everyone to see.

Cons

High fluctuation: Not all cryptos are equally volatile, but in general, since they are not backed by a tangible asset such as gold or oil, their fluctuation is very high, and they can go up or down a lot.
Lack of regulation: The fact, that there is no third party between transactions, is what makes cryptos so appealing, but at the same time, nobody will defend or help you in case you fall for a scam, and no one will guarantee a refund if you are not satisfied with a product or service.
Complexity: Although many people already have cryptos, their use is not yet widespread, and most don't know how to use them to pay for goods or services. If you want to receive cryptos as payment, you need to analyze the different existing wallets, which complexity varies from the simplest to the truly complex, and find one that serves your customer right.

Gpay POS — Photo by Clay Banks on Unsplash

Finally, here are some other things you should consider before starting to receive cryptos as a means of payment:

There is little regulation: Most countries do not know how to regulate the use of cryptos; if the law changes, you could be affected somehow.
Is your business suitable for cryptos?: Some companies are already negotiating with cryptos, accepting payments, and making transactions. Still, these companies are generally products or services that are paid only once, like plane tickets, hotel reservations, or products such as computers and cars. If your company has payments in installments, subscriptions, or payments that can be impacted by fluctuations in currencies, it would be best to reconsider the option.
Which cryptocurrency to use?: Today, more than 2000 cryptocurrencies exist with very different values and stabilities. Not necessarily the most famous ones are ideal for your business, since the decision has a lot to do with your product or service. So before you start receiving cryptos, do research and decide which one is the best for you and your business.
What to do with the cryptos you earn?: It's not only a matter of accepting cryptos. You need to know what to do with them after the payment. The possibilities are: keeping them and submitting yourself to the market fluctuation or selling them immediately in exchange for real money.
Crypto owners buy what you sell?: This is an important question. Will the people use cryptos to buy your product/service? This is a market like any other; you have to know your buyer. If the owners of cryptocurrencies are not interested in spending it on what you sell, it is not worth starting to accept them.
Public opinion: Many people are suspicious of cryptocurrencies, considering them fraudulent, unstable, or the product of money laundering. Analyze your business and, if you think that accepting cryptocurrencies can affect your image or cause you to lose current clients, it is best not to accept them.

Conclusion

In conclusion, cryptocurrencies raise many questions and heated discussions.

In the case of businesses, their use is not yet widespread enough to know if they are a bet, that will give the expected results. So we leave the question open: Would you receive cryptocurrencies as a payment method in your business?