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5 Ways the World Is Now Using Bitcoin

by Lena

Bitcoin is more than just an investment. Increasingly, businesses and consumers alike are finding ways to save money and find new opportunities by switching from fiat currency to Bitcoin and other major cryptocurrencies.

Bitcoin was invented to create an alternative to the high fees and long wait times that come with transactions done through banks. The world is finally waking up to the opportunities presented by a decentralized digital currency, and embracing new ways to use Bitcoin to save money.

#1 Payroll

In early 2019, Swiss media company Netzmedien AG announced that it would pay all employees with Bitcoin from now on. Employees were offered payment in either Bitcoin or Swiss Franc, and voted to accept Bitcoin. The price fluctuations offer an opportunity to earn above their paycheck. Netzmedien AG is admittedly a tech-forward company, as they own and operate eight technology magazines and one website.

#2 Smart Contracts

Smart contracts make invoicing easy and it’s becoming common for freelance web developers to accept cryptocurrency as payment. Smart contracts allow two parties to create a contract on the blockchain that will release funds as soon as the conditions of the contract are met. For example, a web developer could get paid as soon as the website goes live without having to wait months after sending an invoice for accounts payable to send the cash.

#3 International Remittances

International remittances are big business, and they’re expensive. Every year, an estimated $574 billion USD is sent out in remittances worldwide. The fees can be as much as 5%. That’s an enormous percentage for sending a wire transfer, whether it’s from a migrant worker or a wealthy expat sending money back to their families.

Cryptocurrency offers a lower-cost alternative to expensive wire transfers. By avoiding the banking system, people can send money anywhere in the world faster and more affordably.

#4 Retail

It’s not just web commerce that’s beginning to accept Bitcoin. Advances in mobile payment technology are bringing digital wallets into brick-and-mortar stores, too. Everyone from tech companies to furniture outlets to pizza parlors are accepting Bitcoin for their goods and services. Businesses love cryptocurrency as an alternative to paying expensive Visa transaction fees.

#5 Business Suppliers

When businesses are making payments in the tens or hundreds of thousands of dollars to key suppliers and service providers, wire transfer fees can be expensive and cumbersome. For companies that work with vendors in China, there always seem to be problems with Telegraphic Transfer wire payments, such as banks returning payments due to paperwork errors.

Making the switch to cryptocurrency can save your business write transfer fees and simplify the process of paying international suppliers. For businesses in Canada, a Canadian cryptocurrency exchange can further reduce costs by eliminating international exchange fees and allowing them to directly deposit funds onto the exchange. Smart businesses can now eliminate numerous costs when they deal with international suppliers.

The number of ways businesses and consumers can use Bitcoin continues to grow. You can cut down on the fees and costs that come with sending money by making the switch to cryptocurrency.