Tesla’s temporary adoption of Bitcoin (BTC) as a payment method for its products was arguably one of the catalysts that drove asset prices to record levels last year and highlighted the legitimacy of cryptocurrencies, particularly in the realm. of payments. Furthermore, crypto enthusiasts praised the fact that Tesla even set up its own node to accept BTC and stated that it would not exchange its holdings for fiat, implying great confidence in the long-term prospects of cryptocurrencies.

But despite backing off and ceasing to accept Bitcoin a few months later due to climate concerns, Tesla was just a cog in the 2021 adoption machine. Starbucks, Whole Foods, and AMC Entertainment were just a few of the other giants to make their inroads. in crypto. last year. However, what is evident is that the incumbents are the favorites of the well-known names. For other companies that want to jump on the trend, it’s a question of how to start.

The latest report from Cointelegraph Research provides answers. The 35-page document reviews the growing trend in cryptocurrency acceptance and practical ways that any business can integrate cryptocurrency into its operations. Additionally, the report also discusses the future of cryptocurrencies in payments, particularly as it pertains to regulation and much more.

Why should businesses accept crypto?

Cryptocurrencies are believed to be in a hyper-adoption phase, and the 178% increase in the global cryptocurrency population is further proof of this. For businesses, adapting to this growing demographic would mean expanding their potential customer base. Receiving payments in crypto is also much cheaper compared to TradFi methods, which can improve a company’s bottom line. Merchants could save up to 3.5% on fees, or more, if the payment method is crypto instead of credit or debit cards.

Download the full report here, complete with charts and infographics

Chargebacks are also another drawback with TradFi payment methods, costing e-commerce merchants $125 billion in 2021. Chargebacks are a type of payment reversal where the merchant pays back the sum of money to the customer due to a transaction dispute or if the customer returns the purchased product. product. However, chargebacks can also be outright fraud, as some customers may dispute a transaction for a refund despite not having a problem with the product or its delivery.

The process of accepting cryptocurrencies

Whether a company sets up its own node like Tesla or opts for a payment processor to facilitate the transaction, the way to do it is more or less the same but differs in substance. For example, certain payment processors may allow a merchant to receive crypto, but would also allow real-time settlement in fiat. This effectively eliminates price volatility while giving the merchant the flexibility to accept digital assets. Of course, the downside is that it subjects the company to the often lengthy procedures at TradFi.

The flip side of this is accepting the actual crypto asset wholeheartedly, and there are several reasons to do so. Long-term price appreciation is the most common argument, but companies can also hold on to crypto assets for sticky situations. Traders can also earn additional income using avenues available within the crypto space, such as locking cryptos in DeFi protocols for staking or lending returns.

Ultimately, the deciding factor on the channel to receive crypto assets will depend on the merchant. The factor that needs to be taken into account is whether the goal is to maintain cryptocurrencies or take advantage of the growing cryptocurrency customer base, or perhaps even both.

Download the full report with more detailed information, complete with charts and infographics at the Cointelegraph Research Terminal.

This article is for informational purposes only and does not represent investment advice or investment analysis or an invitation to buy or sell financial instruments. Specifically, the document is not a substitute for individual investment or other advice.

This post Accepting Bitcoin for Your Business Like Tesla: Report

was published first on https://cointelegraph.com/news/accepting-bitcoin-for-your-business-just-like-tesla-report


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