Businesses all over the globe have been making big financial strides, and cryptocurrencies are in the middle of this move. The thing started as a niche experiment but is now being adopted by global institutions from all sectors, i.e., fashion, supply chain, banking, etc. In fact, major global brands like Microsoft, Tesla, PayPal, Gucci, and Rakuten, among others, accept various crypto as a method of payment. As of 2024, Triple-A estimated that there were over 560 million crypto users globally, with India being at the forefront of the countries with the highest ownership.

Right now, business owners are not asking whether crypto will play a role in the future of their finances but how it will benefit their businesses. For instance, with the high adoption of cryptocurrency in India, companies are incorporating crypto into their treasury. A company like the IT firm Jetking has become the first public firm in India to adopt Bitcoin as its primary treasury asset. After purchasing Bitcoin worth US$1.2 million in December 2024, the company’s stocks soared to new heights.

Diversification of portfolio

Having cryptocurrencies as a business helps diversify your investment portfolio beyond traditional assets such as stocks and bonds. The good thing is that crypto exhibits a very low correlation with traditional assets, ensuring that it acts as a hedge when the market is on a low.

Now, having a token like Bitcoin in your portfolio actually acts like a hedge against inflation. Just like gold, whenever there is currency devaluation and excessive monetary policies, Bitcoin has presented itself as an attractive source of value. The good thing is that it has a high growth potential. Take, for example, in December 2024, the price of Bitcoin soared above the US$100,000 mark, creating an uproar in the business world. In fact, experts like Daniel Roberts, CEO of IREN, suggested that it would not be a surprise if Bitcoin reached US$1 million by 2030.

Companies like MicroStrategy view crypto investments as a long-term strategy for value storage. Since big companies are doing this, more businesses are getting motivated as they wait to see what crypto has in store for them.

Attracting tech-savvy customers and investors

If there is something that showcases the forward-thinkingness of a business, it’s the ease of incorporating new and promising technology into their systems. The businesses who invested in and adopted the internet when it was still new lived to reap its rewards. The CEO and co-founder of BitRIA, Dan Eyre, pointed out that investing in crypto right now is just like the early investments in the internet.

Now, as a business invests in forward-thinking technology, they are bound to attract more tech-savvy customers. In this case, they are bound to attract customers who deal with digital currencies. As mentioned above, the number of crypto owners is going up at a dramatic rate, with 2024 recording at least 560 million crypto owners. This means that a business offering crypto forms of payment will attract a good portion of customers who prefer using digital currencies. This keeps the business modern and competitive.

Andrew O’Neill, the digital asset lead analyst at S&P Global Ratings, said that offering crypto payment methods is a good way for companies to brand themselves as being innovative. This came as luxury brands are turning to crypto after the industry faced one of the biggest slumps in years and is looking for new sources of growth. According to Andrew, instead of brands looking like stuffy old brands that sell to boomers, companies can gain a different kind of following, i.e., the younger generation, which is more tech-savvy.

Easier global transactions

One major selling point for crypto is making cross-border transactions easier. To start, crypto transaction fees are often lower than traditional payment methods like bank transfers and credit cards. The transaction fees for cards mostly range between 2% and 4%, while crypto transaction fees are less than 1%. In fact, charges from credit card companies can go as high as 6%. When you add that up over many transactions, you can feel the pain hit a nerve. The low cost of transactions by crypto comes in because there are fewer parties involved. The payment moves from one crypto wallet directly to the other crypto wallet without requiring middlemen.

The ripple effect of lower transaction costs for businesses is lower operating costs. This means that the business can have higher profit margins and even offer more competitive prices for products and services. For consumers, the lower pricing ultimately increases their buying power, increasing the amount of profits brought towards the business.

Apart from low charges, crypto transactions are also very speedy. Whereas it can take 3-5 business days for a normal bank transfer to go through, crypto transfers are almost instantaneous. Actually, tokens like Solana and Cardano have proved to be pretty fast in their transaction speed.

Another thing is that crypto payments are readily available 24/7. There are no working days for cryptocurrency, unlike some traditional payment methods like bank transfers. For this reason, businesses that operate every day of the week find it simpler to operate as they do not have to wait for a specific time and day to make their transaction.

All in all, crypto is proving to be a worthy investment for business owners, considering the many benefits it brings to the table. Businesses all over the globe are diversifying their portfolio with crypto to act as an inflationary hedge and a store of value. Also, they are attracting new customers who are in tune with technology as well as making transactions easier across borders with faster and cheaper transactions. In the near future, we expect to see more businesses getting into this crypto bandwagon since, as it is, it is not just a hoax.