Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $2,17 trillion. Bitcoin continues to trade at around $62,300. Ethereum experiences no changes and stagnates at around $2,400. XRP is down by 2%, Solana by 1%, and Dogecoin by 3%. Almost all altcoins are trading in the red, with very few exceptions. The DeFi sector decreased the total value of protocols (TVL) to around…
The Impact of Adoption of Cryptocurrencies on E-commerce Business
E-commerce is the short form of electronic commerce. It is the buying and selling of merchandise over internet networks. It also involves the transfer of funds and the keeping of records to certify the transactions made. E-commerce is of three types; business-to-consumer (B2C), business-to-business (B2B), and business-to-government (B2G).
The main reason for using cryptocurrencies in e-commerce is to eliminate third parties controlling the transactions. In addition, this relationship can make online shopping much easier and safer since blockchain technology that backs up cryptocurrencies is safe from cyber-attacks. Read on to learn more about how cryptocurrencies and E-commerce can work together.
How are Cryptocurrencies Influencing e-commerce?
Many e-commerce companies like Overstock, Amazon, Tiger Direct, and New Egg have started using Bitcoin and other cryptos as payment. Despite the risk involved with fluctuating prices of cryptocurrencies, these companies understand the advantages this union could bring. These advantages include the following:
Timely Payments
Cryptocurrencies operate 24 hours a day throughout the year since you can automate them. Also, their transaction times are almost instantaneous. Applying this technology to e-commerce will therefore cut the time it takes to prepare goods for delivery.
It will also be advantageous to the seller because they will deliver more goods daily to their clients.
Inspiring innovation
Blockchain (BC) technology continues to disrupt many sectors of our lives. It provides a platform for developing solutions to the challenges we face today. Take the instance of crypto wallet hacks for you to look at. Tech-savvy programmers can access crypto-wallets and clean them out.
That said, blockchain technology enables the development of innovations that help curb such challenges. It has done so by selling Non-fungible tokens and properties using blockchain technology. In Hollywood, movie studios are using smart contracts to control the distribution of movies. Musicians are also applying Smart contracts to curb copyright issues in their art pieces.
Streamlining Online Shopping
International transactions are cumbersome, costly, and take too long to complete. But cryptocurrencies can change that. They are open to everyone’s use and transcend the geographical boundaries of the transacting parties. International payments also help open up new markets in developing countries for e-commerce businesses.
Using cryptocurrency for international trade will eliminate the need for costly currency conversions. Cryptos have a uniform valuation in all countries. They are the change that global businesses need to adapt to improve the quality of their services and increase productivity.
Cutting Transaction Costs
International bank transfers attract high fees. As a result, the banks charge high fees that discourage customers. This situation presents one of the biggest challenges that e-commerce businesses face. Since customers have different purchasing power, extra fees or taxes might scare some away.
The discount and interchangeable fees are a nightmare to both the seller and the buyer. Moreover, the seller might also incur interchangeable fees from the issuing bank. This happens when he’s looking for foreign money to buy their stock overseas.
Credit card transactions could be more friendly since they incur charges like payment gateways and card network charges. But since cryptocurrencies have much lower gas fees, they will make international transactions more pocket-friendly.
Enhancing the Transparency and Trust of Transactions
Cryptos make transactions transparent. Blockchain technology allows you to capture transactions and displays them to the public. Besides the openness of this display, it is also immutable. So it’s easy to trace transactions back to the originating wallet addresses. Thus cryptos help check fraud and build trust between the transacting parties.
The robustness of crypto security systems makes them a trusted payment method. Blockchain technology is impregnable, while wallets store funds using state-of-the-art encryption. The immutable nature of the blockchain prevents cashback from happening without the wallet owner’s consent. Again, you can create new addresses for one-time payments. That way, your details remain safe even when hackers exploit the platform you’d traded on.
What are the advantages and disadvantages of using Cryptocurrencies in a business?
Cryptocurrencies also have pros and cons. When you decide to use them in conducting their business, you will expect to notice changes in your profits. Here are some of the advantages that you will experience when you incorporate cryptos into your business.
- You will be able to reach more customers and make instant payments.
- Your transactions are safe and transparent in a way that will encourage your customers.
- You will enjoy the liquidity of cryptocurrency, which may bring you millions from merchandise sales.
- You can see your crypto stash increase once the prices go up.
You might need help with some things once your business goes crypto. They include:
- When crypto dips and droughts happen, your business may lose a lot of capital.
- If you are in developing countries where people need to learn more cryptos, your number of local customers might reduce.
What is in the future For e-commerce and Cryptocurrencies?
Cryptocurrencies are the tool of change that investors need to embrace in a push to improve their business output. Do not overlook the advantages of incorporating cryptocurrencies into your E-commerce business. When applied well, cryptocurrencies can grow your business in significant ways.
Now is the right time for all international and local business owners to embrace blockchain technology. From this information, we conclude that cryptocurrencies and blockchain technology are the future of e-commerce and other businesses. Deciding whether to adopt them or not is a personal decision. One thing is clear, though, adapting them impacts profits.
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