The hot topic in the world right now is cryptocurrencies. After Elon Musk announced that he would accept
Tesla payments made via the virtual money, many merchants might be wondering
whether it is useful to start accepting settlements in a similar fashion. However,
experts advance that this is not a good idea. Let’s find out why.
Volatility
The fluctuation in the value of US money is very slight. Even in the most
disruptive period, its buying power will be more or less the same. The same
cannot be said for cryptocurrencies which are extremely volatile. For instance,
a year ago Bitcoin traded at $10,000
and today it is approximately $60,000. The crypto industry tried to overcome
this problem by creating a stablecoin. This is a form of digital money that has
its value linked to a more stable asset such as the US dollar or gold. However,
it is not yet widely adopted. As a small or mid-sized e-commerce company,
accepting cryptcocurrency is a great risk because a drop in value can
significantly affect your business.
No rewards
Most if not all credit card companies offer consumers rewards and cash back.
This is to motivate them to utilise their cards. In the world of cryptocurrency,
there is no such loyalty program yet which is a disincentive to use virtual
money.
Bitcoin is very volatile © Royalty-free image
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