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Bitcoin and other cryptocurrencies were created itself while keeping in mind to be used as better options as a currency that needed to be treated as mainstream.
In an economy, its growth is quite dependent upon businesses and their innovations, especially small scale ones. Now for their development, one of the crucial factors remains their smooth payment and transaction processes. There were many experts and analysts who claimed that bitcoin (BTC) and similar cryptocurrencies could be the best form of money throughout history.
Now looking closely there is potential that bitcoin and crypto could impact the small scale businesses that are in huge amounts in the region. Let’s take the data from US Small Business Administration (SBA) for instance, that says that about 99.9% of all businesses in the United States have a count of about 500 employees and also 99.7% of these firms have paid employees.
However that’s the case with bitcoin because it has so many utilities and people can have use cases according to their choice while trying new things. As per the recently published report by Block (SQ) titled ‘Bitcoin: Knowledge and Perceptions’, the higher income individuals see bitcoin as an investment asset and its potential of money making.
On the other hand those who belong to lower income brackets see bitcoin as a payment medium or as an easy way to transfer money to others who do not have any relation to banking institutions.
Transaction fees for institutions become a headache considering the amount of what they earn and out of which a significant amount goes to processing fees. Take for instance about 35% to 45% from total transactions at a local restaurant that were remain in cash once that now remain just 5%. While asking about the restaurant owner, he said that about $100,000 he pays per year just for processing charges. This significant amount of charges in transaction fees can be reduced while using bitcoin as crypto payment that comparably accounts for far less transaction fees.
On top of this, bitcoin holding could allow small business owners to save for their future purchases. Take the compound annual growth rate or CAGR of bitcoin even while fluctuating overall and through poor timing, it has been about 48% historically. Moreover, the cost of bitcoin payments processing fees is less than what credit cards charge for transactions, which makes this option have better money at work and a lower transaction cost.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
