World society is transformed into a hyper-connected and super-intensive system. There are more than 2.5 billion Internet users worldwide (35% of the world’s population) and 1.5 billion smartphone users. All human activities are currently processed on the Internet. Want to learn more about Crypto trading and investments? Join Bitcoin Currency and get a whole new experience. Start your investment journey today!
In this context, cryptocurrencies will have fertile territory to take over the financial system regarding transactions and energy savings.
This new financial model is very attractive to many people since it decentralizes investments and generates profits even without sometimes having to leave home.
From blockchain to exchange platforms are points in favor of cryptocurrencies.
Benefits of cryptocurrencies compared to traditional currencies
Cryptocurrencies are here to stay without a doubt; they have several advantages over conventional money, but above all, people are beginning to resort to them, mainly the young population who find it natural to use innovative technologies and tools
Although Bitcoin was initially developed to function as an alternative to fiat currencies, there has been an increase in demand from many people buying the virtual currency simply as a FINANCIAL INVESTMENT rather than using it for a transaction.
Currently, most of the CFOs who are in charge of the finances of small and large companies are convinced to invest in BITCOIN as a digital currency.
Locating it as a short-term corporate asset, where the same managers can manage the investments effectively, quickly, and efficiently, is extremely attractive. It will be profitable in the medium and long term if used correctly.
Just last year, PayPal, the world’s largest payment processor, announced that it would allow its customers to buy, sell and hold cryptocurrency, and demand for that service has been more significant than the company expected.
Uses of Bitcoin and Other Cryptocurrencies
Blockchain technology is one of the main attractions for business finance; This type of platform offers its users the internationalization of virtual currency, the globalization of trade, and a better structure of the financial system in the world to avoid future financial crises.
Some of the uses of Bitcoin or Cryptocurrencies as complementary currencies could be the following:
- International transfer of funds (thanks to the possibility of exchanging bitcoins for more than ninety monetary signs)
- As an official currency of electronic commerce (purchases and sales made through the Internet)
- Small international transactions include remittances from people who work outside their country. Bitcoin could reduce both the cost and the time required for those payments.
- Micropayments, given their divisibility and low transaction costs. To make donations to foundations, buy songs, books
- Alternative to credit cards, due to its ideally encrypted and decentralized system
- Adoption of some OPEC countries as a transaction currency for the purchase and sale of oil as a way of becoming independent from the dollar
The business environment has changed in recent years, and the modernization of finance continues to grow, so Bitcoin in the business world opens the way for new business and financial strategies, even when its operation and attributes still need to be well known.
The companies that can make the most of this or other cryptocurrencies export or import products and need to use their financial resources on different continents, but also those that have their business model on the Internet, since payments through bitcoin have essential component security.
One of the main inconveniences large companies are exposed to is capital mobilization through bank transfers since it is often complex and expensive.
It is where cryptocurrencies and the ease of their operations come into play, attracting more and more followers.
Conclusion
Our globalized world pushes companies to adapt to new technologies and financial resources. It is up to each one to decide if they operate with these currencies and how much of their financial resources they allocate to them. An investment at the right time can be very successful. However, if money is needed in the short term, losses may occur due to the volatility of its value.
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