Digital currency is the new and upcoming success path for a lot of business owners. The Crypto economy is booming and one cannot deny the implications of cryptocurrency in finance. Bitcoin and Ethereum are the leaders of cryptocurrency that are expected to shape the future of Finance. 2022 a decline in the prices of cryptocurrencies and yet experts are still positive regarding their status. According to experts, Bitcoin has reached the mark of 21st-century gold. Bitcoin has deflationary properties and is highly volatile. Although the infrastructure is improving Bitcoin is still not used commonly as a means of payment. These properties are similar to that of gold. Let us take a look at some reasons why the future of finance is crypto.
The possible revenue stream for the government
Despite the inhibitions, the Indian government has welcomed cryptocurrency with open arms. The finance minister, Nirmala Sitharaman mentioned that there is no doubt Indians have seen the potential of cryptocurrency and invested heavily. Given the promising future, it could be a good source of income for the government as well. With that in mind, a 30% tax has been levied on the income through cryptocurrency. Before this, all companies were asked to divulge any crypto assets they may be holding.
Establishing a regulatory authority
A lot of people are confused and often ask, “Is crypto banned in India?” Since 2021 India has been on the fence regarding the legality of cryptocurrency. In 2022, it was clear that crypto is here to stay since cryptocurrencies provided solutions for the problems that the current Fiat currency system had. Exposure to flaws and ready remedies for those problems is one of the major reasons why the cryptocurrency is successful. The need for regulatory authority was not felt by the communities that were supporting cryptocurrencies. However, it is a vital requirement if cryptocurrency is to survive in the future of finance. The establishment of a central authority gives investors a confidence boost and some assurance to the skeptics.
The globalization of businesses began decades ago. However, the cost of doing business around the globe is too high. If a business owner in India decides to go global, then the hoops he has to jump through to establish a simple payment system are exhausting. Cryptocurrency has allowed this business owner to expand the business without having to worry about payment systems. This means a business can Transcend the borders of the country where Fiat currency is useless.
Control and distribution
Ownership of Art and streaming are two of the major components of the entertainment industry. More artists are inclined toward owning their art instead of giving up control. Control and ownership of art of the artist when the distribution takes place on the blockchain as the file can exist only in one place. This eliminates the problem of piracy and helps the artist to get fair compensation. If a certain video is streaming then the blockchain backtracks it to the artist and ensures they get paid. This eliminates the middlemen like Netflix, and the artist can get paid for their work directly.
Costing and pricing
Since the use of cryptocurrency eliminates the need for any paperwork and reduces the administrative load due to the robust system, the cost of operations is automatically reduced. This means the cost of a product or service is reduced due to overheads. This benefits the customer as well as the business owner. This also improves the communication between two parties and establishes trust.
Reduction in fraud and duplicity
The reduction in fraud and duplicity is a result of one of the properties of cryptocurrency. The blockchain does not allow the entry of double values. For example, if the blockchain and cryptocurrency are being used for e-voting, then it would ensure that 1 person cannot vote twice. At the same time, if there is a smart contract between 2 parties for doing business, then neither party can change the contract irrespective of who generated it. If any changes are to be made, a new contract has to be put in place. These factors build better relations and help the business grow.
If you have invested in cryptocurrency in India, refer to a crypto law blog to know the tax implications. With the regulation of crypto, there may be a proper tax structure for everyone to deal with. Owning crypto just makes good business sense if you are looking to expand your business in the long run according to the experts. There are a few businesses that are already accepting payments in cryptocurrency. The infrastructure is still developing and is currently expensive to put in place. However, with the sophistication of infrastructure, there is a possibility that people become more receptive to cryptocurrencies.