Industrial and organizational benefits of introducing Crypto Currencies
You will probably get to hear a lot about how investing in digital currencies holds a myriad of benefits for an individual provided the investment is well timed. This article aims to look at the introduction of crypto currencies in lives from a different angle; the suppliers’ point of view. Your Thought Process Before we go on to explain how exactly crypto currencies can be more efficient for organizations, let us explain what lines you need to think along. If you go to Disneyland you will see that there is currency you will have to exchange in order to get Disneyland money, which is basically what you will need to use throughout your adventure to get any good or service. The benefit of having such a unified currency is that there is hundred percent liquidity of the amount you hold. Industrial Point of View Now suppose an industry decided that any deal carried out from its online retailers, or direct deals which do not belong to its native land, will be conducted through the use of Bitcoins. Such a decision can bring a multiple advantage to the industry:
Greater Access to Markets
One key factor which hinders potential consumers from contacting suppliers is the massive difference in exchange rates, which ends up making the deal quite expensive for the consumer. This happens a lot in international trade, so we can perhaps understand how a unified currency will tend to solve this problem because for both countries, the exchange rate for that agreed currency will be relative for each.
Simplicity of Payment
There are often times when the payee turns out to be a fraud through the use of false credit or fake money. If you, as a big player in the industry, decide that your particular firm will introduce Bitcoins as the official trading currency, you will see that all these payment issues will be dealt with very swiftly because your system will simply not accept any other pay than the official currency.
One Less Department
If the only task you have to deal with involves collecting and converting Bitcoins from one place and form to another, you can easily get rid of that finance department that not only takes in excess manpower, but tends to do a lot less than it should. If you are operating a large firm, you can significantly cut the size of the department and end up saving more for the firm’s treasury. Drawbacks If it was all so simple, organizations would have started investing in developing this infrastructure long ago. The couple of risks involved, however, include:
Fluctuation of Rates
Considering how crypto currencies fluctuate, one of the two entities might start feeling that they have been ripped off after the deal.
Crypto currencies will always be easy to tap into without perfect regulation, and that will only happen when all major countries join hands in acknowledging its power. To conclude, in the near future we might get to see industries where the payment procedure has entirely been altered and placed at the hands of crypto currencies.