Cryptocurrencies and Bitcoin
Cryptocurrencies like Bitcoin are often regarded as the next big thing in the global financial system. These brilliant digital currencies have continued to reshape how internet commerce is performed. Since its inception in 2009, Bitcoin has grown in popularity within the business sector, both online and offline. Despite widely publicized problems, such as highly volatile and changeable values, the currency's popularity has been observed. So, despite the multiple obstacles it encounters, this essay examines why bitcoin remains a popular money for most business enterprises.
Reducing Expenses with Bitcoin
Bitcoin recognizes that firms must reduce operating expenses in order to maximize earnings. To this end, businesses that use bitcoin do not incur any transaction costs compared to the 3% the latter is charged by credit card companies (Goodale, 2014). Most businesses would want to forego any additional expense that would hurt their profit margins; explaining why businesses are interested in bitcoins as a made of employment.
Unregulated Currency and Business Appeal
Bitcoin, like similar cryptocurrencies, is an unregulated currency. Their market supply is not regulated by the Federal Reserve, a fact that makes it more appealing to anti-government intervention businesses (Goodale, 2014). Similarly, it has also captured the attention of liberal businesses and the millennial generation. The millennial generation is characterized by impulse buying and emotion-related purchases and would simply buy a product from a business that accepts bitcoins. Most business are thus shifting to bitcoin to get a share of this niche in the market.
The Future of Bitcoin
In conclusion, the advent of technology takes credit for the emergence and growth of the bitcoin and even with the challenges that the currency is facing, we are hopeful that technology will solve them and help bring the currency to the mainstream.
References
Goodale, G. (2014). Bitcoin: why businesses are buying in, despite critics and start-up woes (+video). The Christian Science Monitor. Retrieved from http://www.csmonitor.com/Business/2014/0313/Bitcoin-why-businesses-are-buying-in- despite-critics-and-start-up-woes-video
