Can Businesses Benefit From Crypto? – MITechNews
Cryptocurrency is increasingly becoming mainstream, and many businesses are waking up to the idea that embracing the likes of Bitcoin could be a good idea. This isn’t surprising as there are good incentives, but it is important to understand the risks too. In this article, we’re going to look at the case for using cryptocurrencies in your business, so you can make a more informed decision.
How Many Businesses Now Accept Crypto?
The number of businesses accepting Bitcoin is still relatively low. Data published in September 2022 indicated that around 15k businesses worldwide accept Bitcoin, with gambling and tourism as the top two industries. US tech giant Microsoft is perhaps the best-known company, but others include Burger King, ATT, and Subway. Walmart, one of the largest retailers in the US, has encouraged the use of crypto by installing Bitcoin ATMs in many of its stores. In addition, it plans to add a further 8k ATMs in the next few years.
How Can Crypto Benefit Your Business?
Some would argue that cryptocurrencies are the future and by engaging with Bitcoin and other altcoins, businesses are more likely to attract a younger demographic. This is important for forward-thinking companies, as there may come a time soon when digital currencies replace traditional fiat currencies.
Businesses willing to accept crypto could enjoy access to new streams of investment and capital. Having crypto reserves is also a way to protect business assets from inflation, although there is a risk involved.
Your Options for Using Crypto
The main way businesses can utilize crypto is by accepting crypto payments. This can be done in a hands-off or hands-on way.
The easiest way to accept crypto payments without having to account for them is by using a third-party vendor that handles all crypto payments to the business and converts them into and out of fiat currency. The upside of doing it this way is that there is very little risk to the business if prices fluctuate. The downside is that the vendor will charge a fee for handling such payments. If your business doesn’t want to deal with crypto in the accounts, this is the easiest way to accept crypto payments.
A hands-on approach means the business will need to manage all crypto transactions in-house, as well as take custody of any crypto held. Naturally, this is a more complex solution that involves using crypto wallets and tracking all transactions, as well as accounting for them. This is where OKX’s Cryptocurrency Converter will come in handy since the business will have to convert crypto to and from fiat currencies.
Tax and Crypto
If you plan to integrate crypto into your business, whether that means accepting crypto payments or investing in crypto as an asset class, it’s important to be aware of how crypto is treated for tax purposes. You may need to work with an accountant experienced in handling crypto transactions, as well as retain all appropriate documentation.
There are benefits to accepting crypto in your business but weigh up the risks and remember to account for all crypto transactions, if applicable.
This article was provided by James Daniels
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