Are cryptocurrencies bad? And what you (and your business) should know about them to be ready

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Are cryptocurrencies bad? And what you (and your business) should know about them to be ready

Hi everyone I have decided to make this article on cryptocurrencies because I still keep hearing many misconceptions on this topic and also many people still don’t know what is this whole thing around cryptos about. You keep hearing different things about cryptocurrencies or short shortly called crypto in media like crypto it’s for criminals and crypto is for black-market and so on but if you think about cryptocurrency as decentralized technology is just a tool like anything else. The same way as a knife is a tool so you can use it to cook a dinner for your family or you can use it to hurt someone.

And with crypto it is the same – so you decide what you will do with it in close future I expected we will see even more kinds of different cryptocurrencies coming both centralized and decentralized, some created by companies like Facebook some created by central banks or by communities and you can understand yourself today how these technology works what matters and what does not and what to look out for you can get an advantage for you in the future and you can also get advantage for your business.

So I want to explain to you how you can improve your business using a cryptocurrency first of all it’s important that you are able to build your own opinion on whatever cryptocurrency is presented to you and we will see many of them coming so what is the thing in my opinion that matters most in a cryptocurrency it’s the decentralization.

Cryptocurrencies can be both centralized and decentralized what does it mean if your cryptocurrency is decentralized it means that there is no central entity that has control over the system if the currency is centralized there is some entity that has the ability either to freeze your funds take your funds or even to inflate the currency by creating new funds for themselves without any effort so the same way just now happening with US dollar or euro.

If a cryptocurrency is centralized you lose all the advantages of cryptocurrency in my opinion and you’re only left with disadvantages so not a very good deal so watch out for centralized cryptocurrencies and be careful. On the other hand when the cryptocurrency is decentralized there is no single entity no company no bank no government that can take control the currency instead you rely on the system as a whole where every participant contributes to the consensus of the system.

This decentralization has actually very wide implications so you don’t need to rely on any bank that they will allow you to open account that they will allow you to make introduction with your money that they will give you the correct balance of your account which can actually hear very often problem from what I’ve seen and also you don’t need to rely on any government to which is great.

Also in recent years you’ve seen nearly every central bank printing new money like crazy so creating and creating them out of nowhere, pushing them to the markets just to prevent the markets from falling.This doesn’t seem to be really sustainable model to me as Bill Gates said “banking is necessary but banks are not” and decentralized cryptocurrencies make banks obsolete in the way as we know them nowadays another important thing what you need to keep in mind when you are holding the cryptocurrency is whoever has the private key has the control.

So private key is what you to issue a transaction to move funds and anyone who has your private key has the full control over the funds on the under on the underlying address so choose a wallet where you where only you have the private key and please keep it safe. Also if you are using some online exchange to buy or sell crypto – number one rule is don’t keep the crypto on the exchange longer than you need because as long as the crypto is on the exchange it’s not on your wallet it’s on theirs which means if the exchange gets hacked your money is gone.

If you are a business why should you start accepting a crypto today? I see two main reasons first one is if you start accepting it today you will get a very valuable knowledge on how the whole ecosystem works and second depending on the country people may be looking into spending cryptocurrencies directly to buy something instead of selling it first on the exchange and then pay with the US dollar or euro to buy something.

And why? Because and again this depends on the country if you made a profit on a cryptocurrency because the price went up since you bought it you typically have to pay an income tax on the difference that you made when you sell this crypto again. But if you don’t sell it if you instead but in spend it directly you don’t need to pay this income tax. This means that if you as a company start accepting a cryptocurrency you might attract a customer segment that is looking into spending their crypto directly.

So why not to sell a car for crypto? Or why not to sell real estate or your service that you offer. And there are cases like this already happening today. Let me know what you think are you holding any cryptocurrency yourself? If yes, what matters to you? Is maybe your business accepting cryptocurrency.

 

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reference – Are cryptocurrencies bad? And what you (and your business) should know about them to be ready

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