After 20 years, roughly 79% of businesses have failed. Most people worry about business stability in the short-term — and rightly so. The Bureau of Labor Statistics gives you an 80% chance of getting past your first year.
Short-term thinking won’t keep you going, though. To make it 20 years and beyond you need to use the tools at hand. Two of those tools to gain stability in business are digital currencies and cryptocurrencies.
Want to know how? Keep reading for all you need to know about this growing trend.
Understanding How Economic Swings Affects Business Stability
Business stability is affected by economic swings and stability. Currencies are almost always backed by a central bank of a government, except in some isolated instances. This means that the monetary policies of these central banks will affect the value of those currencies and the confidence the market has in them.
These times, though, are unprecedented. That doesn’t mean we can’t learn from the past. The economic crashes and booms of the past can be compared to help navigate our future. This comparison of how markets react now, with different products and technology is very different from the Great Depression, for example.
The stock market is volatile, anyone would agree. Volatility in cryptocurrency is an often-cited reason to stay away from it, but it proves to be more durable than fiat currency, which is founded on nothing more than the reputation of the country backing it.
The general trend and purchase power of cryptocurrency in general, and Bitcoin specifically, is always upward. That doesn’t mean it doesn’t fluctuate.
Why Crypto Can Stabilize the Markets
Cryptocurrencies create opportunities for jobs, as well as new fintech. What we can see with fiat currency, on the other hand, is a history of:
- Lack of transparency
- Money laundering
- Environmental burden
- Overall loss of purchasing power
- Abstraction away from intrinsic value
One reason why cryptocurrencies go up in value against fiat currencies is that they are actually an improving technology. Every year cryptocurrencies become more valuable as they become more tested. Fiat currency, if anything, diminishes in value.
With the exception of 2018, Bitcoin has increased by double, triple, or even quadruple-digit percentage points.
Compare that with money in the bank making less than 2% interest. If that describes your business’s policies regarding store of value, your money is evaporating.
Ways to Get Your Business on Crypto
How can you tap into a market with 300% gains of value or more? There are five (relatively) easy ways you can start getting your business on cryptocurrencies and simultaneously drive value for your customers.
- Start a customer loyalty program involving cryptocurrency
- Start your own token or ICO
- Join a blockchain consortium with other companies in your industry
- Begin to accept crypto transactions on a platform that converts fiat automatically
- Invest in a blockchain project that aligns with your values
Starting a token for your loyalty program may be the best way to get things started. You’ll want to get some advice along the way about regulation before you launch it.
As your customers buy from you through their loyalty ID, they can get tokens. Later they can either redeem those tokens for real money, crypto, or your product.
Keep It Stable, Keep It Safe
Business stability using crypto is only one tool in your toolbox for generating income and keeping your business safe through the decades. Keep your business integrated in the future of e-commerce and the global economy. With cryptocurrencies, you can invest in the future of your business today.
How can you stay on the leading edge? For all crypto and business news that you need to stay ahead, keep browsing our articles!