Although most people are familiar with Bitcoin, only 10% of people know how it works or how it came to be. Although you don't have to be an expert on the technology, you should understand how it can benefit your small business. Cryptos can bring small businesses many benefits, including improved workflows and lower operating costs. They also reduce fraud and increase trust between vendors and customers.The financial crisis of 2008 was the direct cause of the 2009 creation of cryptocurrency. The 2008 financial crisis was a major factor in the development of cryptocurrencies. It was largely due to years of questionable promotion of and use of financial instruments like mortgage-backed securities, subprime housing loans, credit default swaps and underfunded creditdefault swaps. These assets were driven up and down by traditional banks, investment firms, financial institutions, and other financial institutions, causing economic collapse in the United States and elsewhere around the globe.A global network of central banks required hundreds of billions in bailouts to stop an economic collapse. They also had to artificially reset interest rates to zero or lower by attempting to reset them. These enormous efforts were made to save large banks that were too big to fail and to support economies.The central bankers and policymakers emphasized saving Wall Street, rather than Main Street small businesses or retail investors. This highlighted the dangers of federal fiscal foibles as well as mismanaged monetary policies that can lead to serious geopolitical consequences. It was something we all witnessed and none of us wanted to see it again.An alternative monetary model was developed in the wake of that event. It was designed to help individuals and provide a fighting chance against "smart money", capital constraints and Big Banks and Big Finance.After a whitepaper explaining Bitcoin and its potential uses, cryptocurrencies were created. Cryptocurrencies are built on a tamperproof blockchain to protect financial fraudsters. They offer financial freedom and fiscal equality. Many features of cryptos include the elimination of third-party gatekeepers like banks, instant settlement transaction times, significantly lower transaction fees and low-friction transfer to any part the world that has an Internet connection.These benefits can be of great value to any small business.Despite volatility in cryptocurrencies, the fundamentals that support their use and their value remain. These are the three macroeconomic trends that won't be changing soon.The government continues to print money at record levels.In February 2020, the U.S. Federal Reserve granted authorization to the Treasury to increase U.S. dollar printing. In less than 18 months, the total monetary supply (M2) has increased by a remarkable 31 percent to $21 trillion. It doesn't take an economist Nobel laureate to understand that every dollar loses value when money is printed and pumped into the markets in ever increasing amounts.USD Coin and Dai, cryptocurrency stablecoins, are tied to the U.S. Dollar but have remained steady despite the influx of dollars into the markets. Your unused stablecoins can be left on a cryptocurrency exchange (a desktop or mobile app that allows you to buy and/or sell digital coins/tokens) to earn an annual percentage yield of 4 to 12 percent. This is a solid rate for small businesses.The inflation rate continues to rise and the price of goods keeps rising.The U.S. Bureau of Labor Statistics announced that the June inflation rate rose 5.4 percent last month. This was the biggest year-over-year increase in consumer goods prices since 2008. Critics frequently dismiss the Consumer Price Index as an inaccurate indicator of "real inflation", since it is based on changes in costs for a basket goods and services. However, politicians have changed the composition of that basket randomly over the years. It is not a reliable comparator.Despite these flaws it is difficult to overlook June's jump of 5.4 percent, on top the 5.0% increase in May 2021. These numbers do not include the double-digit price increases in homes, used cars, or gas at the pump. You are at the forefront of inflation as a small business owner and have few options to protect yourself. Bitcoin, with its 21 million token scarcity, is an effective inflationary hedge. Small businesses who need quick liquidity access can easily buy or sell fractional bitcoins.Customers who aren't banked turn to cryptocurrency.People take simple employee pensions, Roth IRAs and checking accounts for granted. There are currently more than 1.7 million people worldwide who don't have any financial options, not even basic savings accounts.The "unbanked", regardless of whether it's political corruption, local laws that prohibit such services or unreliable infrastructure have almost no financial or banking options. Virtual currencies and digital wallets can be created on mobile devices by bypassing intermediary institutions and corruption because there is no financial infrastructure. Last month El Salvador gave Bitcoin legal tender status. Nayib Bukele, the President of the country, was the one who initiated the initiative to economically help the 70% of the population in his country that is unbanked.As small businesses have greater access to global consumers, the world is shrinking. Cryptocurrencies are part of this expansion. Cryptocurrencies can be used to eliminate foreign currency exchange fees and wire transfer costs. They also allow for fast payment settlement, no matter where your customer is located. Many millions of consumers are unlikely to be able to bank electronically once they have been connected to cryptocurrencies. It is possible to prepare your business for the future by getting started now.Mainstream media outlets often focus on the fear and uncertainty that cryptocurrencies can cause. This is commonly known as "FUD" in crypto circles. It is important to remember that Bitcoin did not create these geopolitical circumstances and conditions. It was designed as an alternative to the traditional solution. Small businesses should consider cryptocurrencies as they are more in line with the interests of politicians and financial power brokers than yours.
