(MENAFN- CCP Marketing)
Most business leaders know Bitcoin for its volatility. This virtual currency accounts for over 60% of the crypto market. However, its price has a history of fluctuating from trough to peak. But the apparent Bitcoin crashes haven’t undone its historic gains. Perhaps, the continuous increase of Bitcoin value has earned it immense financial fame.
Today, many businesses and individuals accept Bitcoin as a payment method and investment asset. Almost everybody knows a local or online business or merchant that takes Bitcoin payments. If you’ve not invested in this virtual currency, you may have a friend that supports it. Platforms like Bitcoin Code through this link allow people and businesses to purchase this virtual currency using fiat money. After acquiring Bitcoin, you can use it to pay for services and products or hold onto it, waiting for its value to increase so that you can sell it for profits. Thus, Bitcoin serves as a payment method and an investment for some people.
However, some business leaders are skeptical about investing in Bitcoin. That’s because of this virtual currency’s framework of fiat money as a unit of account, value storage, and exchange medium. Some business leaders criticize Bitcoin due to its lack of transaction nimbleness and instability. However, business leaders have several reasons to invest in this digital asset.
A Method for Parking Your Savings
Bitcoin provides an alternative method for parking savings. Compared to fiat currencies, Bitcoin doesn’t expose you to the inflation risk. That means this virtual currency can maintain its purchasing power over the years. Thus, business leaders can use Bitcoin to avoid the devaluation risks that profligate governments bring.
Many experts have compared Bitcoin to gold when it comes to value storage. And this virtual currency is even better than physical gold because it’s easier to transfer.
Risk Mitigation
Bitcoin’s value continues to increase as more businesses and individuals embrace it. Therefore, even a business leader that doesn’t believe in the long-term efficacy of this virtual currency should avoid being on the offside against competitors. Essentially, the competitors’ balance sheets can place a skeptical business leader in a strategic danger of being acquired or eclipsed from the marketplace.
Thus, investing in Bitcoin now could be a wise risk management strategy for a business and might not entail whether the management or the board believes in Bitcoin’s long-term efficacy.
Lower Transaction Costs
Bitcoin doesn’t involve intermediaries. That means business leaders can complete transactions faster and at a lower cost. Essentially, a business leader can send funds to other Bitcoin users at a lower price when using this virtual currency. This virtual currency enables business leaders to transact at 50 to 90 percent lower than traditional payment methods.
Bitcoin Provides Transparency and Stability
Business leaders in regions with unstable political environments can avoid losing money by using Bitcoin. Since Bitcoin is a global payment method, political instability in one area might not affect its value. What’s more, business leaders can send remittances to emerging markets without incurring hefty costs.
Final Thoughts
Michael Saylor from MicroStrategy and Michael Sonnenshein from Grayscale Investments are some business leaders who support Bitcoin. However, some corporate leaders are skeptical about investing in this digital asset. After existing for over a decade, Bitcoin has gained in value and popularity. Many people and businesses worldwide accept this virtual currency as a payment method and an investment asset. However, its price fluctuations have earned it a negative reputation for being a volatile digital asset. Thus, some business leaders are skeptical about investing in it. Nevertheless, corporate leaders have many reasons to invest in Bitcoin, including mitigating risks and lowering transaction costs.
MENAFN15112021006171013398ID1103171962
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.