Cryptocurrency has soared in popularity ever since its infancy, but nothing quite compares to the trend of new crypto traders onboarding the market ever since the beginning of the Covid-19 global pandemic as investors rush to secure a stake in the growing market volume. In fact, cryptocurrency still shows no signs of stopping even today, with its main demographic of traders and investors consisting mostly of bright, young, and optimistic entrepreneurs.
However, beyond the catchy lingo and terms of hodling onto your coins until it goes to the moon and lands you a life-changing rate of return, many established businesses and enterprises have yet to ride the wave of opportunity either due to a lack of awareness or information on its potential benefits. And so, to help fill in the gap and bring everyone up to speed with the innovation behind cryptocurrency and blockchain technology, we’ll be going over what you stand to gain from the crypto market and other salient points that may say otherwise.
Cryptocurrency And Blockchain Technology Cut Down The Middle Man
To put things into context, what cryptocurrency and blockchain technology provides to the greater business landscape, and even onto the banking and finance industry, is cutting down the middle man by introducing more efficient and effective methods of moving funds and resources. At its core, many entities and financial institutions will have the opportunity to exert full control over their cash flows and management of their transactions without deferring the task to third-party service providers.
- Lower Transaction Fees And Faster Payments: Firstly, one of the most impactful advantages to the adoption of blockchain technology and crypto wallets onto your business is access to much lower transaction fees and faster payments like never before. Unlike current and more traditional methods that feature percentage transaction expenses like credit cards, the amount is much close to zero, and it also removes the need to pay any bank charges.
- Safer And More Accessible Than Traditional Options: Secondly, any payment and transaction made through blockchain technology and cryptocurrency are far safer and more accessible than current options because it features built-in fraud protection and offers instant transfers. No longer will your end-customer have to wait weeks because this technology breaks down the barriers to entry of different countries, not to mention all transactions made with these digital coins are final.
However, The Crypto Market Is Under A Lot Of Heat
Of course, despite the apparent benefits cryptocurrency and blockchain technology can offer, that isn’t to say everything has been all sunshine and rainbows for the market. In fact, cryptocurrency has been under a lot of heat lately, with many of the risks and external threats leaving current retail traders and crypto investors worried about the future of their coins.
- Calls For Stricter Regulation And Supervision: One of the more recent headlines that have been taking the world of crypto by storm is the demands for stricter regulations on the crypto market as a whole. And while cryptocurrencies have long been fighting an uphill battle of recognition, the path it’s taking right now will undermine the returns current investors are making as some suspect that the SEC is protecting the legacy banking system. Nevertheless, everything is still up in the air and filled with speculation, but analysts fear the worst is yet to come.
- El Salvador’s Crypto Wallet Taking “Flight”: On top of the expected increased regulations, El Salvador’s Bitcoin rollout and treatment of the cryptocurrency as legal tender has been taking flight as of recent but has been off to a very rocky start. Up until today, the rollout continues to face severe political opposition and still suffers from weak implementation as far as technical capacity is concerned.
Furthermore, Volatility And Uncertainty Still Reign Supreme
Lastly, volatility and uncertainty in the investment markets still loom over most forecasts and discourage many retail investors and businesses from taking the leap of faith because of the inherent risks present to an overall paradigm shift. Yes, the benefits are there and do exist, but one wrong move and an unexpected pivot down from the prices could cause everything to crash as we observe another bearish run.
- Bitcoin’s Amazing Bullish Run Meets Resistance: As of the moment, Bitcoin is ranging around its new three-month high and proving bullish expectations for the rest of the crypto market. However, after its most recent flash crash and immediate resistance at the $52,290 levels, failure to achieve a bullish breakout might lead to a test in lower low support. Plus, once we take into account that Covid-19 remains at large, any sudden fundamental shift will cause the prices to become even more erratic in the days to come.
Weigh Your Options And Evaluate The Overall Situation
Nevertheless, we strongly recommend that you evaluate your current financial position and discern whether your prime to adopt cryptocurrency and adopt blockchain technology or are better off considering other investments. You should always have your business’s future in mind, and if improving upon current loan payment services or logistics appears to be the better decision, being flexible is also a virtue.