Should Crypto-Literacy Be a Key Goal of Businesses in 2023?

Cryptocurrency is becoming more and more of an essential part of everyday life. It’s being used not only as an avenue for investment but also as a method of payment. Because of that, it only makes sense that crypto would start to be adopted by business for investment, operational, and transactional purposes. Of course, crypto is still a recent development which means that there are plenty of things that businesses don’t fully understand about it. It comes with hidden dangers and challenges that rest alongside the benefits that it can bring to many businesses. All of this results in one very important question: how important should crypto-literacy be for businesses in 2023? In this article, we’re going to explore that question to help business owners get the most out of cryptocurrency in the coming year. 

The rise of cryptocurrency 

Something that makes discussing crypto in terms of businesses something of a challenge is its decentralised nature. Depending on who you talk to, crypto is either a bubble that’s about to burst, one that already has burst, or something that will never stop growing. The truth is probably somewhere in between all of these ideas. However, there’s no denying that cryptocurrencies are becoming more and more of a fixture in the modern day financial landscape. Things like the cost of Bitcoin or the Klaytn price are being discussed on national news and considered by large scale investors.

That means that it really was only a matter of time before businesses started to take notice. But what exactly can cryptocurrency bring to businesses and why should business owners care?

Why use crypto in business?

When considering something like crypto for your business, you need to treat it like any other potential frontier, one that comes with all kinds of potential risk factors as well as possible benefits. Thousands of businesses currently use currencies like Bitcoin so it certainly seems as though the wind is blowing in that direction. But that’s only the case if you’re willing to do your due diligence to really understand it.

The benefits.

One of the most significant benefits of using crypto in business is that it gives you the opportunity to access new demographics. Businesses that use crypto are likely to attract customers who are better keyed into the newest developments and who value transparency in their transitions. Not only that but customers who pay with crypto are often a highly lucrative demographic, often paying far larger amounts than those who use credit cards.

Using crypto in your business could also potentially be a great way of “future proofing” it. As new developments appear, it’s often valuable to get a foot in the door as early as possible so that you’re not left in a position where you’re stuck trying to catch up. As more and more clients begin to want to use crypto during business transactions, if you’re not ensuring that you can meet those needs, you’re likely going to miss out on trade to more forward thinking competition.

The challenges

Of course, as with any potential new business venture, it’s never going to be all benefits, all the time. There are plenty of challenges that come with adopting any new method of doing business and crypto is no exception.

One of the most significant risks faced by businesses using crypto for transactions is that many transactions are not immediately recorded on the blockchain. Instead, smaller transactions have to be aggregated in order to be recorded. During that period of aggregation, there is the possibility of manipulation by a hostile party or computing errors to cause problems. 

Another significant challenge is simply one of human resources. If you’re looking to bring crypto into your business, then you’re going to need to ensure that everyone involved is as well educated and informed on the subject as possible. There are potential considerations that need to be made when doing business in crypto that you and your employees might never have considered before. All of which leads to the central point of this article.

The importance of crypto literacy.

As the cryptocurrency market matures, more and more people are getting involved. Unfortunately, this can often result in people diving into the world of crypto before they fully understand the risks. This can result in people losing their portfolios and even their livelihoods. For your business, the results can be even more dire. 

Despite its growth over the past few years, the crypto market is one that is still rife with confusion and misinformation. If you want to make the most of the various benefits that come from using cryptocurrency in your business, you need to make crypto-literacy your highest priority. 

As with any other aspect of running a business, crypto is not something you should dive headlong into without carefully examining all of the potential risks and challenges. Just because crypto represents an exciting new frontier in the way that business is conducted in 2023, doesn’t mean that you should neglect to consider all of your options, learn as much as you can, and ensure that you’re keeping your business assets safe.