Recently, the FED & the US government came to the conclusion that Bitcoin and other Crypto currencies aren’t the bad boy around the block or that they are “evil”. Both of them also continued by saying that Crypto could be advantageous to companies.
The US and other governments have to admit that digital currencies have arrived and are here to stay. To quote some famous Star Trek quote: “Once we get our foot in the door they won’t get it out”.
“Those who dare win.”
Another apt motto from the SAS, but it can be applied to business as well. History teaches us that those who have great & innovative ideas that may seem a bit outlandish could succeed, provided they have great organizational skills. After the organizational step, there is the execution of the idea, and if both are well thought of and implemented, then it will succeed.
For example the “supermarket & self service” concept was thought to be outlandish, cold, not family orientated, back when the idea was created for the Piggly Wiggly chain in the US in 1916. Nowadays, every supermarket and small businesses alike utilizes most or at least an adaptation of these ideas.
· How can this be applied to Crypto and businesses?
The first possibility is that companies provide alternative payment methods for their services and products. Some companies already do that like the Chicago Sun Times and Mobile Vikings.
When companies offer Crypto as an alternate payment method alongside the current ones, they will create a diversification. In times of economic upheaval they can “weather” these upheavals compared to being just focused on one kind of payment method or currency.
However, big companies in nearly all sectors are wary about everything that is Crypto. We are not saying that they are wrong or that they are right but we can understand where this hesitation comes from.
Most of this hesitation is based in the “less than accurate” news reports by “journalists” supposed to research their information thoroughly before sending out wrong or inaccurate information. Of course, most of these articles disappear from forums, news sites and newspapers whenever they are exposed.
There are always multiple sides to a story, and interested parties, as well as journalists reporting on them, should do adequate research before writing an article or getting involved in the Crypto world.
The second possibility is that businesses offer some kind of product where the business offers Crypto to their customers. For example the many “crypto scratch cards” that are cropping up.
The idea behind these “Crypto scratch cards” is sound. Customers go to a shop and buy some crypto scratch cards and pay with everyday currency to get them (like euros, dollars, pounds, etc.).
Both Ideas have great potential and can potentially generate great profits for the businesses that implement them. Most of these ideas have been completely ignored by the mainstream businesses however. Only the forward thinking and those with satisfactory entrepreneurial vision are jumping on this train.
· “The risk” is too great for companies.
Every time we talk about Crypto, there is always someone that rudely interrupts us by saying “ its too bloody risky”. RISK is a part of everyday life. If you cross the street there is a possibility that you may be run over by a car (or a crazed cyclist).
There is also a health risk when crossing the street because you are inhaling diesel fumes from the car exhaust that can cause cancer. There is also a risk of being an overbearing rude evil doer that will drop dead because of a too high blood pressure when reading articles like this. So in short : life is full of risk, deal with it.
We do understand however why people say that its “too risky”, even when these people can’t articulate the reasons themselves. The constantly fluctuating digital currency prices do worry some people, especially the financial sector. Again there is also another viewpoint. These fluctuating crypto prices can be a source of big profit, something that is easily forgotten.
For example Jack X sells his limited Batman statue, only 2500 pieces made, on an online auction and gets 0.9 BTC for it. Jack X is very happy with that price because it equals to 250€. A month later, Jack X’s 0.9 BTC is work 400€.
That is pure profit from doing nothing with that money. Every entrepreneurial minded person looks at Crypto as “ a potential for generating great profits”. Even the US government as well as the FED agrees with this assessment.
· Opportunities for local companies.
The big boys in the industry aren’t focusing on BTC or Crypto. But why are they just leaving this huge profit potential untouched? Mostly because they know next to nothing about Crypto or are misinformed.
It is also possible that the CEO’s of these “big boy” companies aren’t as forward thinking and in combination with “ bad information” about Crypto they will adopt the “ wait and see” posture.
This means that they aren’t against Crypto as a rule but still won’t incorporate it into their business plans. Usually these big companies are national or operate on a multinational level, that will bring add an additional difficulty level.
For example: The US government says “ok” to BTC and crypto but here are the rules. However a country like Belgium, where some activities of said company Y are located, say “no BTC will be used here” or have very vague laws and regulations concerning BTC and Crypto.
Nevertheless there is a bright side to this. The local and small scale businesses can incorporate Crypto quite easily in their company model. Offering Crypto payments for their goods will cost no effort at all.
For example, Iggy (which is a grocery store) provides different payment options for their products: cash, credit card or Crypto (for the sake of argument let’s use BTC). Because the grocery shop is located in a region where there are more elderly people he also has the option to deliver his products to the customer’s home.
Grandchild J wants to do the groceries for his elderly grandmother and thus he orders everything at Iggy’s shop and pays with BTC. If we look at this example Iggy groceries will have created a great diversification and as such can “weather” economic crises better than if they didn’t implement Crypto in their business model.
The fact that the majority of the big companies are ignoring Crypto or have a “ wait and see” posture, is great news for the local businesses. Just by accepting Crypto payments for their products they will have outsmarted the big companies and this can mean a huge difference in income for these small, local businesses.
US patent 1242872, C. Saunders, “Self-serving store”, issued 1917-10-09
MAGEE (D.). How Toyota Became #1 – Leadership Lessons from the World’s Greatest Car Company. 2007.