Why is the business world so far behind on cryptocurrency?
Though the number of people investing and trading in cryptocurrencies appears to be rising all the time, it still isn’t considered particularly mainstream. But why is that?
Cryptocurrency is becoming more popular thanks to its lack of middle management. What’s more, it is a decentralised system, with transparent, fluid transactions all but guaranteed.
It seems, however, that global businesses are yet to really get into the crypto game. While many, including those based in territories where it is legal, are opening up, the corporate world appears to be running at a slower pace than consumers on this front. On every level, this would seem to be a critical mistake. Therefore, what exactly is happening with businesses and crypto, and why aren’t more firms accepting digital money?
Cryptocurrency uncertainty
To get to the bottom of why businesses are slow to adapt to the world of bitcoin and others, we have to understand all the uncertainty. Cryptocurrency, while popular, is far from being publicly accepted. Many territories still don’t regulate digital money, while others are unsure of how to treat it, full stop. The UK’s system does have some rules in place, but things are still rather shaky.
The uncertainty lies in both the volatility of crypto and in the legal factor. In Australia, for example, businesses are widely using bitcoin and other money in physical stores. This is thanks to a clear legal position. Unless laws are clear on whether or not crypto is legal tender, businesses are going to be reluctant in accepting it.
The volatility of bitcoin is also a major concern for some businesses. Uncertainty in cryptocurrency allows the markets to spike and fall regularly. However, many seasoned traders have continued making money simply by riding out the panic. When you are running a business that isn’t always so straightforward because there are many more risks involved.
Should businesses be open to cryptocurrency?
Now that we’ve understood a little bit about why businesses may be slow to accept crypto, we need to look at why they should be quicker to accept it. The most obvious reason is, of course, the popularity of Bitcoin, Ethereum and Litecoin, amongst others. The world is going to grow ever-more digital and with that change people are likely to flock to cryptocurrency in droves. It is easy to get into, worthwhile investing in, and trading is amazingly private.
Investing and trading are made simpler through artificial intelligence. While some people may worry that emotions could get in the way of tense market decisions, they can use bots and software to automate their choices. Bots are fantastic at helping new investors get into trading. They can help traders understand why certain markets behave how they do, and what to look for in the deeper details. Many people use online guides and resources to find the best Bitcoin robots out there, all of which are publicly available.
Crypto investors are a key demographic in the future of online and offline marketplaces. Therefore, some businesses and entrepreneurs with low risk levels may have already opened their doors to digital money. There is a fine balance to be made. Do businesses embrace crypto now, and risk losing money, or leave it until later, and risk falling behind the pack?
The here and now
The fact is, it seems many businesses, particularly big corporations, are playing it safe. There is a growing interest in bitcoin in the wider banking scene, however, cryptocurrency is still seen as a great ‘unknown’. Many businesses may refuse to adopt digital money simply because they struggle to understand how it works.
However, you don’t need to understand how everything works in cryptocurrency and mining to be able to make money from it or to be able to accept it. For these reasons, it’s argued that firms should start opening their minds to crypto’s place in society.
On the other hand, it is understandable that businesses may wish to play safe. Risking loss is something that should never be handled lightly. Therefore, perhaps the best course of action will be to strike a balance. Businesses should be open to investing a little capital, but not a huge amount. In that way they can carefully assess how cryptocurrency works for them while building a great foothold once bitcoin and the others go mainstream. When, how, and if this will happen – of course – is up for debate.
