The Impact of Cryptocurrency on Small Businesses

Seldom has there been a buzzword that caused such a stir like cryptocurrency has. Indeed, it does sound too geeky to the layman’s ears but internet users of the 21st century are well aware of the significance of cryptocurrencies.

However, being inseparably linked to finances, cryptos inevitably led to one important question: How will they affect small businesses? There certainly are major changes cryptocurrencies will introduce in business practices but let’s analyze some of the biggest ones.


Cryptocurrencies offer an alternative to traditional money services. In the world of small businesses, this option not only offers cost-effective transfers but also their safety and security. The transfer of funds between a customer and a business, or even between two businesses, makes use of public and private keys. This enables transparency of all online transactions, preventing fraud at the same time.

On top of that, as more and more companies are embracing this method of payment, customers have started to adopt it and are now even requesting that they be allowed to spend their tokens whenever possible. Ultimately, any business that aims to keep up will have to consider introducing cryptos as a payment method.



We can’t talk about the benefits of blockchain without mentioning smart contracts. Also called digital contracts, these virtual agreements don’t need intermediaries because they are translated to computer codes. What’s more, businesses can exchange shares, property, and money, while simultaneously enabling transparency and enforcing legal obligations. Once converted, they can be stored on the system. In addition to that, the network of computers running the blockchain is able to supervise them, making the contracts more secure and cheap.


Businesses thrive on their customer satisfaction. With an increasing number of online clientele turning toward cryptocurrencies such as Dash or Ethereum, businesses are shifting their focus to these secure financing options. For example, people can buy Dash online and if they are offered to make a purchase using it, then winning them over would be much easier.

Since cryptocurrencies employ decentralized ledgers, there is no third party facilitating the transaction which implies that both the customer and the business can save the amount that would otherwise be charged as a fee.


Small and medium businesses are no strangers to funding. In fact, hardly has any business taken off without a bank loan or other financial ventures. Still, in the efforts to eliminate the cash-draining property of bank loans, newly-founded companies have recognized the potential cryptos have that can save them money and time.

Being free of interest rates, cryptocurrencies are ideal to invest in. For example, young companies have the potential to grow rapidly over short periods of time. If these startups decide to buy blockchain tokens and trade them, their growth is likely to increase token’s relative value, bringing market participants a profit along the way.

Transactions are irrevocable

Disputing a charge or negating a sale is not possible with cryptocurrencies. This means that the finality of crypto transactions protects businesses against chargebacks and possible customer frauds. Not only do small businesses increase their chances of becoming better at risk management but they will also gain better control over their return policies.

Final thoughts

It is only natural that these technologies will have some negative aspects as well. Their volatility and unregulated environment are the greatest cause of distress among crypto marketers. However, as it’s in everyone’s best interest, there are significant amounts of effort being put into regulating and mitigating these threats. Luckily, regular revisions on pricing and auto-updates are usually enough to prevent the damage.

The only thing that is certain is that cryptos are gaining more and more stability. Businesses that succeed in implementing these new emerging trends in their value propositions will be likely to reap the benefits.

You might be interested in the following