Cryptocurrencies, such as bitcoin and the Ethereum network, allow small businesses to engage with these networks in a way they never could before. Bitcoin perks are a blessing for small businesses that are not capable of availing capital from the traditional banking system due to a lesser revenue of their business.
However, business owners may also check articles online and learn about bitcoin volatility as it might affect the decisions they will make.
Small businesses suffer the most from rules and regulations imposed by the traditional banking system, and this is why bitcoin serves as the best alternative as a banking system for these small businesses. Bitcoin perks in small businesses can help them improve their productivity, efficiency, and capital holding potential. Let’s explore all the Bitcoin perks and offers for small businesses.
The issue with the financial system
The problem with traditional finance is that the distribution of wealth is much more connected and unequal than it needs to be. For example, this country’s vast majority of wealth lies in a small percentage of the population (the top 1%), and a portion of that wealthiest segment comprises about 200 families.
Not only that but traditional finance is still built on the same system of debt that has existed for over 450 years. The general model is to have financial institutions lend money to individuals and small businesses, and those who borrow pay back with interest.
It is a scenario that leads to long-term debt for many small businesses (80% of businesses in America are small businesses). It can lead to owners not creating more jobs or growing the business because they are too busy servicing their loans. This trend results in a generation of employees who do not fully participate in the economy and lack innovation.
The use cases for the new financial system
Bitcoin and Ethereum allow these businesses to work with other businesses in a way that was unimaginable just a few years ago. The two networks allow small businesses to create their financial instruments, which are unique and different from any other system. These new building blocks make it possible for small businesses to respond quickly to market changes, utilize large amounts of capital, and manage risk in impossible ways.
Now let’s look at how this new model can benefit small business owners.
No More Politics
The decentralized nature of these networks means that no single group can hold all the power. As a result, bad actors cannot create deliberately designed problems using their industry or country.
As these systems allow small business owners to receive money easily and quickly, it makes it possible for them to be on top of global market changes in an instant. In addition, it allows them to create unique business processes that aren’t possible with traditional finance, which makes it easier for small businesses to innovate.
Today’s traditional financial system is not accessible to many people because they can’t access banks or basic financial accounts. These decentralized systems allow any person or small business to access financial instruments that were previously unavailable to them. These platforms then allow them to build businesses and grow at a pace they never could.
Reducing the cost of doing business
The new financial system makes it possible to eliminate third-party transactions, which can be a high cost for small businesses. At the same time, it allows small businesses to increase their revenues and profit margins significantly. This direct relationship with customers also allows for more trust between both parties.
This new system can significantly lower bureaucracy costs by reducing paperwork and enabling faster processing time for money transfers. In addition, it is a huge benefit for small businesses because they have fewer resources than giant corporations and banks.
Save time for owners
While banks and large corporations take money from businesses and pay them to open a separate account, traditional finance does not allow small businesses to use the money they have earned. Thus, small business owners can lose time due to delays that have nothing to do with their core business.
The decentralized nature of these new platforms makes it possible for people without a background in finance or investment to work as financial advisers and build successful businesses. It also means that people with all experience levels can offer professional advice without special qualifications other than being willing to learn and use the tools these networks provide.
Cryptocurrencies like Bitcoin and Ethereum are allowing small businesses to do things that were previously unavailable to them. For example, the decentralized nature of these platforms makes it possible for people without experience in finance or investments to work as financial advisers, which is a huge benefit for small businesses in the future.
At the same time, it will also allow more people with different levels of skill and experience to use these platforms to build successful businesses.