Following the long crypto winter of 2018 and the recent price rally, the blockchain and cryptocurrency sector is once again growing fast. In fact, the crypto winter did less damage than people might believe. Even during the time that Bitcoin seemed to be at risk of dipping below $3,000, the number of crypto users increased by 54 million.
These days, plenty of businesses are starting to accept cryptocurrencies, including Microsoft, Subway, and Overstock. And it’s not just businesses – charities and non-profits are also learning the benefits of accepting crypto. Global charity Save the Children is one case in point, as is the Water Project.
Are you still on the fence about accepting crypto? Here are five great reasons why your business, non-profit, or other venture should open your wallets to cryptocurrencies in 2019.
Banks and credit cards help themselves to fees which eat directly into your bottom line. Even more modern payment services companies such as PayPal levy transaction fees on businesses. It’s how they make their money.
With crypto, you may end up paying a network transaction fee, but it’s almost guaranteed to be significantly lower than the percentages levied by the banks and payment providers. Furthermore, crypto is borderless, so it doesn’t matter where your customers or donors are based; you’ll never pay forex fees.
Sending payments via blockchain is fast, and with the current pace of development, it’s getting faster all the time. Even intrabank payment network SWIFT is moving onto the blockchain.
Currently, if your customers or donors send you a wire transfer, it can take days to arrive. This is particularly true if they aren’t based in the same country as you are. Bitcoin and Ethereum come under frequent fire for not being instant, but they are still light years faster than the banks. Sending a payment with cryptocurrency is never likely to take more than minutes, and in some cases, it could even be a matter of seconds.
Security and Privacy
Cryptocurrency transactions are recorded on the blockchain, so they’re secure, private, indisputable, and safe as houses. Traditional payment gateways need to pass through a third party, so you’re essentially trusting that party with your data and payment security.
On the other hand, cryptocurrency transactions are performed on a peer-to-peer basis, so there’s no third party involved. Furthermore, provided you use your own personal wallet and don’t store your funds on an exchange, then it’s completely secure. As all the transaction details are recorded on a blockchain, nobody can dispute the payment further down the line.
Tax Advantages for Donors
Investors often choose to donate appreciated stock to non-profits as a means of avoiding the 20 percent capital gains tax levied on the appreciated value. The IRS has previously confirmed that, for tax purposes, cryptocurrencies are property, so they’re subject to the same tax treatment as stocks. Furthermore, the IRS has recently started to chase down holders of crypto, claiming unpaid taxes where it believes they’re due.
In light of this situation, there’s no better time than now for a non-profit to start accepting cryptocurrencies. Crypto investors are often ready and willing to support causes close their hearts and tend to hold a healthy disdain for authority. Therefore, a non-profit may well find that investors are happy to donate some of their appreciated cryptos rather than hand over the capital gains tax to the IRS.
Join the Crypto Community
When you accept cryptocurrencies as a means of payment or donations, you’re opening your doors to a fast-growing and extremely vibrant, vocal, and supportive community! This is the same group that poured over $20 billion into the Initial Coin Offering (ICO) boom of 2017 and 2018.
It’s a burgeoning sector, willing to embrace new ideas and spend money on supporting businesses and causes that are important to them. They’re more likely to trust you and want to work with you if you accept crypto payments.
So, if you’re about ready to accept cryptocurrencies into your business, non-profit or other venture, then how do you go about it? These days, there are plenty of options that make it easy for your customers, supporters, or other users to pay you some crypto without exchanging wallet addresses. NOWPayments is one example, and the best part is that it doesn’t charge you any fees.
NOWPayments has a fully working API, or you can also integrate it with your WooCommerce store. If you’re a non-profit or charity, you can embed a donation widget right on your website’s homepage.
If you’re concerned about the price volatility of cryptocurrencies, then NOWPayments also supports a range of tokens which includes stable coins such as USDT and PAX. These coins are pegged to the US dollar, so you don’t need to worry about the value of your payment depreciating while you focus on other endeavors.
Bitcoin will turn 11 this year, proving that cryptocurrencies aren’t a fad – they’re here to stay for the long term. Therefore, making the decision to embrace crypto isn’t just keeping up with the current trends. It’s a savvy business choice that offers the potential of opening up entirely new channels of revenue, at no cost to you. What’s not to like about that?