Over the past few years, the media has chattered more and more about digital money. Cryptocurrency, a blanket term covering money which sources and trades online, has gained a massive following in a very short space of time. While digital money may not pose any immediate threat to physical cash in the short term, there are more than a few reasons why businesses should start paying attention to Bitcoin and other such currencies if they want to stay relevant in the modern world.
Do Scottish businesses also need to pay attention to the new currencies? Of course. For small businesses and entrepreneurs in Paisley and for established brands in the area, it may well be the time to start thinking about investing some money in digital currencies.
No slowing down
The impact on Paisley businesses may be plain enough to see in the months and years to come. The fact is the UK uptake in cryptocurrency has never been stronger. British investors and adopters can quickly head online to place money into virtual exchanges. There are few risks in starting up, and certainly even fewer risks to using Bitcoin and other crypto long term, but cryptocurrency is notoriously volatile.
The reasons why businesses need to start paying attention to crypto is the fact that growing interest is going to continue as the years roll by. Young people, in particular, are investing money in cryptocurrency exchanges to pay for digital goods and even to start their own businesses. Entrepreneurs and some small businesses in Paisley are already accepting Bitcoin, for example, for everyday services and goods exchanges. Many companies who can afford to take a chance on cryptocurrencies are doing so to make sure they appeal to as broad a modern audience as possible. Simply put, any businesses that continue to purely appeal to physical cash users could face getting left behind in the years to come.
Why aren’t businesses doing more to embrace crypto?
The simple fact is that businesses – notably bigger corporations – are staying coy on crypto thanks to the risk factor. While the trends emerging suggest that more and more people are investing, cryptocurrency is decentralised – which can make things more than a little shaky for big banks and associated businesses. This can be perceived as a safety risk, certainly, which can be seen as too reckless a move for some firms to make.
There is also some shakiness in the law over cryptocurrencies. The reason why you’re not seeing more businesses in Paisley adopting these digital currencies is due to the fact that we’re still not really clear on where the UK stands. HM Revenue and Customs does have a policy in place for accounting for crypto on tax returns, however, legality remains hazy. In the years to come, this may change, but whether or not this will change how the money receives regulation in the UK remains to be seen. Despite the misty views, it is relatively easy for individual investors to grab a handle on future developments.
Beyond this, a significant factor is the volatility of crypto for businesses. Thanks to the currency still being an unknown entity to many people, there are large spikes and dips frequently. This means you could buy low, witness a huge wave one morning, and then a huge decline the next. It’s something of a vicious cycle, as these dips and spikes are only happening thanks to the uncertainty surrounding crypto in general.
Therefore, it’s clear to see why many businesses in Paisley, the rest of Scotland and elsewhere, are holding off fully investing. But is that really a wise move?
Why crypto matters for Paisley businesses
If businesses in Paisley want to take full advantage of financial and technological trends now is the time to get to grips with cryptocurrency. Experts suggest that we are in a period where crypto is not yet mainstream, yet it could be due to emerge as a leading currency alternative in a few short years. Therefore, any businesses looking at long-term plans must anticipate more customers using this type of money, as well as their rivals adopting payment systems in much the same way. Some suggest there is a generational shift involved.
Regardless, cryptocurrency is vital to businesses in Paisley because, like it or not, it represents a clear slice of future trade. It may be worth doing some research now, and investing a little money, to avoid the significant risks of taking a short-term view.