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5 Reasons Why Businesses Are Turning To Crypto

Published
December 14, 2023
Updated
October 27, 2023
< 3 min read

After a huge part of the retail sector got involved in the world of cryptocurrencies, businesses and organizations also started looking into the potential this novel asset class carries.

Currently, entire industries have integrated blockchain technology and tokenization hoping to improve on countless aspects of their operations in the long run—read on to see why numerous businesses turned to crypto, and how yours can profit, too, following their example.

Why does institutional crypto adoption matter?

For starters, let’s observe why businesses adopting cryptocurrencies is an important milestone in the first place. The key to answering this lies in the nature of how businesses operate, that is, mostly with long-term planning and thought-through ventures. Thus, large corporations of all kinds started purchasing crypto because a great set of careful analyses and projections done independently by them all resulted in the same, positive conclusion about cryptocurrencies

Naturally, this should give investors and hesitating businesses significant confidence about the industry, which boost is expected to eventually reflect in crypto assets’ valuation, too. Conclusively, we can say that businesses turning to cryptocurrencies is an important milestone; what’s left is to see the reasons why it likely happened.

Reason #1: Cryptocurrencies’ unmatched profitability

The number one reason has to be the obvious and objective goal of most businesses, that is, gaining the edge in profitability. Countless businesses have already recognized the simply unparalleled investment potential of crypto assets, which are among the highest historical returns ever. To put this into perspective, S&P 500 ETFs, arguably the most popular forms of investment globally, averaged around 10% unadjusted yearly returns over the past decade, while Bitcoin (BTC) alone registered a median of more than 200% APR (annual percentage rate).

Reason #2: Long-term implications of blockchain technology

It’s not only profits that speak to organizations, but also the actual benefits that blockchain technology offers. There are a multitude of global tech companies that leverage decentralization, hashing, efficient transaction, and many other common elements of crypto blockchains, with the expertise they often gain by partnering with crypto ecosystems and protocols.

Reason #3: The proven benefits of tokenization

Tokenization opened unprecedented doors in a variety of online retail sectors, ranging from the sports industry to the gaming and financial worlds. Various corporations have recognized that crypto payments in tokens, for instance, are among the best ways of transferring funds internationally with bulletproof security, extreme speed, and negligible fees.

Reason #4: Positive effects on brand image

Branding and positive PR coverage are invaluable elements of every serious firm, and cryptos can help both. Those entities that started to accept Bitcoin payments, for instance, have gained positive exposure and thereby secured thousands of customers by this simple act. Other types of cryptocurrency payment solutions are said to have similar effects, such as offering crypto on websites.

Reason #5: Increased overall performance

Combine all the above, and you get a generally enhanced picture with greater potential profits, better tech solutions, tokenized products, and positive publicity. Therefore, for companies that feel stuck at their current stage, or would simply like to propel their growth exponentially, crypto payments and other related solutions seem to be a perfect choice.\n\nTo get a head start, visit the Swaps.app, where there are only a few steps to be done before your business can start offering crypto to its audience and profit from this special asset class.

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