- The first cryptocurrency – Bitcoin – was invented in 2009, and since then the cryptocurrency Dogecoin has gained huge popularity.
- More than one in four business owners surveyed say they plan to accept crypto payments at their business in 2022; 1 in 3 will accept Dogecoin.
- Huy Nguyen, digital marketing executive at digital.com, explained how the adoption of cryptocurrency will impact the business sector.
The first cryptocurrency – Bitcoin – was invented in 2009, and since then 13,000 more have been created. In the past few years, the amount of money being invested into crypto (decentralized digital money) has hit an all-time high.
On Oct. 22, 2021 the total value of all cryptocurrencies amounted to more than $2.5 trillion.
The meme-based cryptocurrency Dogecoin spiked late last year when Tesla and SpaceX CEO Elon Musk announced that customers would be able to use it to buy certain Tesla products, although Tesla is not the first major company to accept payments in crypto, with companies like Microsoft, AT&T, and Twitch allowing customers to either pay directly in crypto or go through third-party apps.
Large corporations can more easily accept cryptocurrencies, but what about smaller businesses?
Digital.com recently surveyed 1,000 U.S. business owners to see what their plans were for implementing crypto payments, and found that nearly one in three say they plan to work with Dogecoin in the near future.
Key survey findings:
27% of business owners will start accepting cryptocurrency this year. More than one in four business owners surveyed say they plan to accept crypto payments at their business in 2022. 10% say they plan to start accepting crypto in 2023, 18% say sometime in the next two to five years, and just 6% say they plan to in more than five years. 10% of those surveyed say they already do accept crypto at their business.
30% of business owners say they will never accept cryptocurrency payments. The largest percentage of the survey’s respondents (30%) said that they never plan to accept cryptocurrency. This may be because they see it as too big of a project to implement or believe that the crypto fad might end one day.
Nearly one in three business owners say they feel pressured to accept crypto at their business. These respondents stated that they feel or felt pressure to accept cryptocurrency payments at their business. Of this group, the top two reasons are a belief that they may lose customers by not accepting crypto (53%) and a belief that they will appear behind the times (49%). Just 33% said their motivation to accept crypto comes from a belief that it will be profitable.
Huy Nguyen, digital marketing executive at digital.com, explained how the adoption of cryptocurrency will impact the business sector.
Allwork.Space: Is the adoption of cryptocurrency just going to be a short-lived trend? Or will crypto be the way of the future?
Huy Nguyen: More people are using cryptocurrency wallets and services as a way to earn high interest on their savings.
Compared to a traditional bank savings account, where a customer may earn a fraction of a percent of annual interest on their deposits, crypto interest-bearing savings accounts can easily earn 10% or more of stable coins (crypto that is pegged 1:1 to the $USD) and the interest is paid more frequently and compounded for even greater yield.
As consumers learn about this, they will become more comfortable moving their funds over and using crypto wallets to make purchases.
Cryptocurrency is only one part of a larger trend, which is blockchain technology and web 3.0.
The decentralized nature of Web 3.0 allows consumers to control their personal data privacy and allows them to connect to businesses without creating a log-in or worrying about being tracked and retargeted.
Allwork.Space: How will the increasing usage of crypto affect business and the future of work as a whole?
As consumer adoption of cryptocurrency and Web 3.0 technology increases, businesses will need to be prepared to accommodate the needs of potential customers.
There are a limited amount of third-party apps and payment providers at the moment but we expect that number to increase as demand increases.
Additionally, depending on the complexity of your business, you may look to hire programmers or developers that are well-versed in building applications and integrations for Web 3.0.
Allwork.Space: What are the benefits of businesses utilizing cryptocurrency?
The use of crypto for conducting business presents many opportunities and challenges. As with any frontier, there are both unknown dangers as well as strong incentives.
Firstly, cryptocurrency removes central banks from managing the money supply, since over time these banks tend to reduce the value of money via inflation.
The technology behind cryptocurrencies (the blockchain) also has its benefits because it’s a decentralized processing and recording system that can be more secure than traditional payment systems.
Another benefit of using cryptocurrency as a payment method is that it ensures that businesses deal with their customers directly, and the absence of a middleman means that the transaction cost will be much lower. This is better suited for small businesses that are very sensitive to minor differences in cost.
The complexities involved in dealing with traditional currencies and processing payments from customers around the globe are lessened with the use of cryptocurrency. Businesses are able to complete international trade without overpricing the product or losing profit since cryptocurrencies have the same value everywhere.