The crypto market has grown too big to ignore, and continues to do so despite the current “crypto winter”. The businesses that previously dismissed the technology are gradually adopting it. Everyone is doing everything possible to capitalize on crypto’s potential. A growing number of businesses are already using crypto for investing, operational, and transactional purposes. Even use cases like cross-border payments, NFT markets, decentralized finance (DeFi), identity management systems, etc have witnessed massive adoption.
Further, TradFi platforms like PayPal, VISA, and Mastercard have integrated crypto and its applications into their ecosystems. Similarly, Tesla, Starbucks, McDonald’s, Balenciaga, Shopify, and thousands of others have jumped into the crypto bandwagon. And it’s no wonder, given that the potential of crypto is well above anyone’s wildest dreams. The $40 billion+ NFT industry and the $95 billion+ DeFi market are the greatest examples for this.
The credit, however, goes to the inherent benefits of cryptocurrency. While it is obvious that the market has grown to billions of dollars, the reason for this is due to the benefits and services it has offered.
Offering a plethora of benefits
If the crypto market has risen to billions of dollars, it is due to the advantages it offers over traditional financial systems. The sector has created great financial and technological prospects for the world. And one of the most important benefits that crypto has effectively delivered is accessibility. Crypto has allowed small firms to compete with big businesses – for example, crypto commerce startup exeno using Binance Pay to compete with industry giants. They created a marketplace with a wide range of products, and the whole multi-tool ecosystem, based on cryptocurrencies.
The second benefit has been DeFi services. Through DeFi, crypto has not only banked the unbanked but has also created opportunities to disrupt the established banking system. Even access to capital has become easy. Crypto has made it possible to connect with worldwide experienced investors who can help firms speed their use cases and growth.
Moreover, crypto has made partnerships possible. Blockchain has consistently demonstrated that it is about collaboration, not competition. And the finest examples are most of the blockchains and dApps that have achieved success only via meaningful collaborations rather than rivalry.
Exeno is another example of a crypto platform that has partnered with Connext with the goal of providing cross-chain capabilities to its exeno coin (EXN). This is an example of a fruitful collaboration aimed at bringing multi-chain bridging to the market.
There are several more advantages that crypto has introduced, but these are some of the most significant ones that have majorly contributed to businesses. However, let’s not get too caught up in the benefits that we overlook certain risks.
Risks cannot be ignored
Although there are several advantages to using cryptocurrencies, it is vital to be aware of the risks associated with them. Volatility is the major risk factor associated with cryptocurrencies. Since crypto prices are determined by demand and supply, large price fluctuations can occur, affecting businesses that accept crypto payments. Even the irreversible nature of crypto transactions might have an impact on businesses because funds cannot be easily retrieved.
Furthermore, a lack of government or regulatory backing in certain countries might make it difficult for enterprises to embrace and manage crypto-related activity. However, some measures may be taken to decrease or eliminate these risks. Adopting stablecoins to prevent volatility, KYC/AML procedures to keep track of things, and company-level regulation can all assist to limit the risks mentioned above.
The road to mass adoption
Crypto and its use cases have already shown how the technology may transform businesses throughout the world. Moreover, businesses like Tesla, MicroStrategy and others adopting crypto is a sure sign that it is here to stay. Ultimately, crypto has opened the door of opportunities for businesses to evolve themselves into something revolutionary.
With the growing number of companies adopting crypto, the next step would be mass adoption. Although the technology is still in its early stages, the potential is unlimited. It may be the right time to adopt this technology and be a part of the new internet revolution.