Cryptocurrencies have been making waves in headlines across the country. From real estate transactions to stocks in Bitcoin skyrocketing to create overnight millionaires, the illusive currency remains to be a mystery to many. Investing in a form of money that can be volatile involves risk, but could it lead to reaping even greater reward? A recent Forbes article dives into cryptocurrency and how it can be a great benefit for retailers and consumers alike.
Thus far, buyers of Bitcoin have largely been investors. That being said after purchasing the general plan is to wait to use the cryptocurrency until appreciation is maximized. The recent downturn in value has been an extra cause for waiting to cash out and according to Forbes, investors are choosing to “Hold On for Dear Life”. Anyone who has studied the stock market can tell you that just as things lose value they are bound to gain value. This means that if you at some point, consumers will cash in on their investments proving that the currencies aren’t going anywhere.
When it comes to using cryptocurrencies for the purchase of goods, there are several incentives for companies to accept it. Right now, there aren’t any legal implications enforcing purchases made with them to be taxed which is a big incentive for retailers. Another perk is not waiting to see if funds are available. Using a cryptocurrency is a fail proof way of knowing that the funds exist, instead of waiting to see if a check will clear.
So, even if these digital currencies become integrated with merchants across the board won’t it happen a long time from now? Some experts speculate that using cryptocurrency is the way of the future and that future may be sooner than you think. Once the government regulates digital currencies as a currency they will hold more stability, just like the US Dollar. Currently the government views Bitcoin as a commodity. Andrew Rossow explains to Forbes that, “Bitcoin is considered property, rather than currency" which makes them a risky asset for retailers that fall victim to digital theft.
If laws enforcing digital currency as money are passed there will be no stopping the digital force. A reliable form of money for both retailers consumers could make retail experiences more convenient than ever.
Real more about how cryptocurrency can impact retailers here.