Every year, the need for Cryptocurrency keeps on increasing. Cryptocurrency is a digital form of currency that can be used to pay for different products and services. Its value is changing every now and then, depending on the status of global economy, blockchain hubs, and overall demand.
Among the different cryptocurrencies, Bitcoin is the most popular. Many merchants have allowed Bitcoin transactions, thus increasing the profitability rate of their businesses. In this case, lenders and borrowers should also take advantage of Bitcoin.
Here are the 3 reasons why lenders should accept Bitcoin for loan repayment:
Bitcoin is Unregulated
Bitcoin, just like other cryptocurrencies, is unregulated by any central authority. This gives greater freedom for Bitcoin owners and ‘miners.’ Another advantage of unregulated virtual currency is the constantly high value. Since getting a Bitcoin is a bit difficult for an average person, its value remains substantial. Lenders can take this opportunity to grow their Bitcoin reserves and create better investment options.
Bitcoin Transfer is Fast
Using Bitcoin as payment method grants the advantage of speed. The transfer from one Bitcoin to another takes only few minutes, depending on Internet connection. With this swift transfer method, lenders can settle more transactions in any given day. Borrowers can also save time as well. You can get a Bitcoin wallet from different blockchain-operated platforms and websites. If you’re a lender, you can use this wallet as virtual storage for your Bitcoins. Some companies are also offering paid Bitcoin wallets along with several privileges. This is beneficial, but you need to watch out for companies that will just reap your money.
Bitcoin is Considered an Asset
Just like stocks, Bitcoin is also considered an asset. If you own a unit of Bitcoin, your net worth is a bit higher than someone who doesn’t own a unit. With a tradable asset, you can purchase more investments that often take advantage of time and volatile markets. Bitcoins can also be used as cash alternative. If you need a specific service for your business and you’re short on cash, Bitcoin is an excellent choice. But you may need to wait a few more years before Bitcoin gains international acceptance. Currently, not all merchants use Bitcoins for their transactions.
With the sheer advantages of Bitcoin, ignoring it can be a business mistake. Also, many people are now getting into the Bitcoin trade, thus making the virtual currency lucrative. Once used for loan repayment, the lender and borrower can definitely reap huge benefits!