The dream that cryptos would someday replace fiats is not quite dead, but it seems more like they will complement fiats rather than replace them. Small businesses, the little guy, which crypto was originally intended to empower, can score marketing and publicity points by accepting some of the major cryptos without expending a lot of resources.
Who uses it?
Large companies like Microsoft and Overstock accept cryptos. How much of their revenue comes from that source? Assuredly much less than comes from fiats, but that doesn’t matter. What matters is that friends talk to friends about how they bought their newest toy with Ethereum instead of USD.
Why use it?
Aside from the word-of-mouth advertising, cryptos are also good for small businesses that incur a lot of banking fees, and especially international transaction fees. Overseas suppliers can immediately receive payment, and importers can be assured their transaction takes a few minutes instead of a few days. This eliminates a considerable portion of exchange rate and counterparty risks.
One interesting use case is for middlemen who need to transfer money almost immediately upon receipt. Holding it increases various risks, but being able to transfer out again immediately lowers those risks. Large institutions can afford the risk, but tightly-managed small businesses usually cannot. And with low-fee networks, mom-and-pop retailers can lower costs to customers (who normally absorb the interchange fees on credit card networks).
Businesses that rely on automated, encoded enforcement will also greatly benefit from cryptos. They may not even be interested in using cryptos for financial transactions; their focus may be on the advantages of a public and immutable record of transactions. Sole proprietors could use this for maintaining honest reviews.
How to use it
In small businesses, resources tend to be limited. However, getting set up to accept cryptos is rather simple these days, so owners do not need to worry about spending thousands on development to generate a few dollars in revenue. And once setup is complete, there is very little maintenance required.
The following infographic neatly summarizes these points and adds a few of its own. Small businesses can benefit from cryptos, and the implementation is relatively straightforward. Why should small business miss potential when big businesses are already moving towards crypto acceptance?
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