We are now living in a world which has become very dependent on technology, or more specifically the digitized online realm.
This already encompasses almost all aspects of life, with the most notable one being in the financial sector.
Introducing cryptocurrencies, a new digital asset which aims to solve all the problems related to traditional fiat currencies. Examples of these issues are constant inflation, lack of investment value, and slow and expensive transactions.
And with the influex of this digitized world comes ecommerce stores. Gone are the days when you need to have a brick-and-mortar store and pay the many utility bills associated with running the business.
Now, you can just create a website by hiring a web developer and couple it with a few apps by hiring another app developer.
You then come up with a new way to sell your items in a more efficient and affordable way as all of these processes run in the internet.
Infuse ecommerce with cryptocurrencies and you come up with a hyper-modern way of doing business.
But is that a good decision?
In this article, we are going to answer that question and come up with their respective pros and cons so you can weigh things out and decide for yourself.
What is a cryptocurrency?
A cryptocurrency is a digital asset that serves as a currency for payment and other transactions.
The best thing about cryptocurrencies is that they do not depend on banks. They have their own tokenomics which is a programmed series of codes that only its respective developer knows.
This tokenomics dictates the supply of the crypto coin, how it can be created or mined, and its functions and intended use.
It is named cryptocurrency because it uses Blockchain technology, a new kind of encrypted system which secures the validation of transactions.
This means that you aren’t sending to a specific bank account with the name and other personal details of the person.
Instead, you just send to an address which is made up of a series of letters and numbers. And that’s all! Simply send the crypto coins to the address and you’re done! That’s how efficient it is.
Each crypto also has its own Blockchain network where it runs on. Take for example Bitcoin with its ticker BTC, which runs on the Bitcoin network. Ether coins run on the Ethereum network, while, BNB or Binance coin, runs on the Binance Smart Chain.
Advantages of Using Crypto in E-commerce Websites
Increase market share
Getting to accept cryptos as a new mode of payment or as an option for customers to pay will surely make it easier for you to increase your market.
But it’s not just about having a bigger share of the market, because you’re also getting a quality market knowing that you are targeting tech-savvy clients.
This will surely bring in higher revenues on your end knowing that the tech industry is one of the most lucrative sectors you can get. You can also gain the choice to pay via a digital wallet or through a crypto exchange platform developed by app developers.
Fast transactions
Another cool thing about cryptos that ecommerce websites can benefit from is that they have very fast transaction speeds.
This would greatly benefit online shops because site visitors will be more interested to buy their products and services if it’s easy to pay.
You don’t have to wait for hours or even days for a transaction to push through. Instead, you just have to wait a few seconds or a few minutes at most for the other wallet to receive the payment.
Very low transaction fees
Then there are the very low fees associated to sending cryptocurrencies from one person to another.
Although this varies on the Blockchain network your crypto runs on, generally speaking, the fees are still way lower compared to sending fiat currencies via bank.
Ecommerce websites can benefit from this because this will increase the chances of them buying from you as they don’t need to pay additional miscellaneous fees.
What are the cons of using cryptocurrencies for e-commerce?
Volatility
Cryptocurrencies are very volatile.
Although this is one of the reasons why it has became widely popular because you can easily double, triple, or even quadruple your initial capital, this also means that payments can get confusing because they can swing extremely in value.
This then means you need to keep changing the price based on the current value of the crypto that your ecommerce website accepts.
Multiple choices
Another disadvantage cryptos have to an ecommerce website is that there are a lot of choices out there.
Specifically speaking, there are thousands of cryptocurrencies available in the market today, and choosing which is the best one is surely confusing. Aside from that, there are also many new coins that pop out of existence regularly.
Not yet mainstream
Some people might say that cryptocurrencies have already entered the mainstream. But in reality, it’s still far from that.
This might be true for first-world countries where internet speeds and digitization of work processes are rampant. But in the developing world, cryptos are still as strange as smartphones are to secluded tribes in the jungle.
You might have a hard time attracting people and making them buy your products and services just because you are associated with cryptocurrencies.
The Future of Cryptocurrency is Inevitable
All things start small, and whatever that may be, the vast majority would remain skeptical about new things.
This is exactly what is happening with cryptocurrencies.
Many people think that cryptos are a scam and that it’s a way for criminals to go unnoticed.
Well, the funny thing is that the people who say these things don’t understand what cryptos are, how they function, and the underlying revolutionary technology that runs it.
Whichever the case is, cryptos are here to stay, and it has all the things needed to solve the issues surrounding fiat currencies.
Hence, ecommerce websites should slowly integrate with digital currencies to not only ensure it survives the next coming decades, but also to thrive in a highly-lucrative scene.