Content of article:
- set up a digital wallet
- There is no protection by traditional financial frameworks.
- high scams.
- Sam Bankman-Fried (SBF)
- $625 million worth of cryptocurrency from Ronin
- playing field is crowded with traditional
- global remittance industry
- Sending costs can be as high as 15% when transferring money to people in developing economies.
- They like the buzz of crypto and understand the blockchain technology it stands on.
Accepting crypto offers several key benefits for your business. This includes increased sales, convenience to buyers and lower transaction fees.
How can anyone ignore such a financial and technological unicorn?
But there are some downsides and risks to consider before jumping in and accepting crypto.
To get started, you’ll need to set up a digital wallet on a crypto exchange like Coinbase, Kraken, or BINANCE (yes that Binance). It’s not difficult, but this might be a significant barrier when you’re up to your eyeballs with running your business.
Price volatility is a huge risk. In 2009, Bitcoin was created by an unknown person using the name Satoshi Nakamoto. Back then, you could purchase a whole Bitcoin for less than a US dollar. Today that same Bitcoin will cost you more than $35,000.
Crypto is not a fiat currency being monitored by a nation-state. There is no protection by traditional financial frameworks. It’s your responsibility to secure your digital wallet. Some crypto companies are working to reduce these limitations so you need to shop around.
Let’s talk about trust
People have to “know, like, and trust” you in order to give you their money.
We’re living in a time of high scams.
Former crypto darling Sam Bankman-Fried (SBF) is scheduled for a sentencing hearing on March 28, 2024. A jury found him guilty of all seven criminal counts against him. The FTX founder faces a maximum sentence of 115 years in prison.
FTX, once one of the world's largest cryptocurrency exchanges, had a significant impact on investors, with some losing millions or even billions of dollars. SBF debuted on the Forbes billionaires list just two years after starting the company. By the end of 2021, Forbes estimated his net worth at $26billion.
There are many violations o trust, and this is why it's critical to do your own research.
A hacker stole roughly $625 million worth of cryptocurrency from Ronin, the blockchain behind the popular NFT game Axie Infinity. Transactions including depositing and withdrawing funds from the company’s blockchain were halted.
This is only one of the multi-million dollar hack heists.
Ransomware, phishing and spoofing emails, fake check scams, 10X your crypto in 5-days offers -- and the list goes on.
If your email looks like mine, you’re deleting hundreds of scam offers every week.
I can almost hear you thinking…
But Norm, this fuels our need for middlemen, mediators, and third parties to increase trust, stimulate deal flow and protect my money.
Sure. And that’s why the playing field is crowded with traditional banks, insurance companies, brokers, notaries, credit card companies, and other large-scale trust agents.
Follow the money
Millions of people around the world are living without access to banking services
For them, there is no going to the ATM. They are not able to withdraw cash to pay bills.
Remittances bring the largest amount of monies from the developed world to the developing world. The global remittance industry is anticipated to hit $1.23 trillion by 2030, according to Allied Market Research.
So why is this industry ripe for disruption?
Traditional remittances can take days to confirm a payment and rely on local agents to pay out in cash. Owed balances are settled periodically on a schedule through a commercial bank.
Sending costs can be as high as 15% when transferring money to people in developing economies. This is because correspondent banks charge fees and make profit on the foreign exchange (FX) across currencies, which increases operating costs.
Remittance costs tend to be higher when they’re sent through banks compared to digital channels.
Tech innovations, increase in penetration of smartphones and the internet create new opportunities in the industry.
Businesses of all sizes need to engage customers, followers, and fans to grow revenue fast. This is the path to enjoy a positive return on investment.
Companies including Meta, Disney, Microsoft, JP Morgan, Uber, Gucci, Coca-Cola, Amazon and Google are onboard. They like the buzz of crypto and understand the blockchain technology it stands on.
The future is here. Is your business ready
