Cryptocurrencies Impact On Businesses
cryptocurrencies impact on businessess

How Cryptocurrencies are Changing the Business Landscape

Editorial Team Avatar
Nov 10, 2022
6 min reading time

Bitcoin and other notable digital assets are usually associated with profiteering, bubbles, and speculation. Blockchain technology, the driving engine behind cryptos, and its ever-increasing adaptation are changing how people perceive cryptocurrencies. 

The fact that governments worldwide are using blockchain technology and even developing their digital assets tells us that the business world is in for a significant shift.  

Although fiat currencies and traditional banking won’t disappear anytime soon, it is highly possible that cryptos will fundamentally change the world’s economies. 

Thus, let’s take a look at how crypto can change the overall business landscape by discussing some industry examples.  


Intermediaries will no longer be necessary, as crypto is working based on peer-to-peer networks. As banks’ core functions are no longer essential, many predict that housing money in banks will no longer be needed. However, the current value of crypto lies in the fact that it is easy to transfer. 

Banks make a significant portion of their earnings on the movement of money through check fees, wire transfer fees, and credit card fees. There’s no doubt that cryptocurrency is a threat to the banking industry.  

However, more and more banks are employing blockchain technology to stay on top of the game. Many claim that what crypto does to banking is what email does to postal services. 


The improved technology has led to the emergence of the crypto-bank ecosystem. The security, privacy and transparency that blockchain technology offers are just some of the advantages that have led to the development of banking as a service for the cryptocurrency field.

For instance, crypto banks manage credit facilities by directly linking the user and the borrower through decentralization. 

As long as a borrower has a good credit rating, they have a much better chance of receiving money. The direct linking process allows crypto banks to execute services quickly. Bank holidays, business hours, and business days do not pose an additional obstacle. 

Loans are generally processed within a day. Crypto banks are even employing AI (artificial intelligence) to protect themselves and borrowers from bias that stems from human involvement. 

There are more and more crypto-banking projects on the market. Galaxy Digital LP is one of the more notable examples. The bank was set up by former Wall Street fund manager and billionaire investor Michael Novogratz. 

While this particular diversified merchant bank is not involved in issuing crypto loans, it is dedicated to blockchain technology and digital assets. 

Datarius is another notable example. In their Initial Token Offering (ITO), they raised over $1.6 million. Unlike Galaxy Digital, Datarius is focused on providing credit services. 

Payments and Transactions 

With crypto, there are almost no processing fees. And this may radically change the way payments are completed. Aside from banks, there are various other secondary vendors in the industry. 

Cryptocurrency is impacting companies that help move money and facilitate in-person payments and online transactions. Now, one party can transfer money directly to the other. 

The multiple layers of intermediaries are becoming obsolete. Third-party processors can be an enormous burden to small businesses and large corporations alike. We can see more and more examples of that chain being broken. 

Even though state-issued cryptos are becoming a reality, no major cryptocurrency is tied to any nation. They allow businesses to cross borders between countries with astonishing ease. Bitcoin and a few other universally accepted cryptos make that possible. 

Many businesses rely on cryptos to offer users more payment options, of course, to attract customers. The lack of processing fees is alluring to both customers and companies.  

While PayPal and credit card processing companies charge a 2% to 5% fee per transaction, merchant crypto wallets charge flat monthly fees for as little as $30. 

With cryptocurrencies, transactions are almost instantaneous. The average Bitcoin transaction takes several minutes to process. With ETH, it takes 15 seconds on average. The discrepancy is huge because credit card payment processing can take 2 to 3 days. 

Studies show that most customer complaints revolve around the speed of service. With that in mind, it’s no wonder more and more small businesses are turning to crypto as a payment option. 


The world of investing is in for a seismic change as well. Brokerages and banks make money off the transactions they facilitate in the investment world. It’s another cost that parties have to assess against all transactions. 

This is another area where the peer-to-peer system comes into play. To bypass a brokerage, the parties need another way to facilitate the payments and record the transfer of ownership. 

Moreover, they need a way to find each other in the first place. While crypto doesn’t yet have all the solutions for tackling those obstacles, it is slowly disrupting the way investments are made. 

So far, crypto has shown to be a profitable asset to invest in rather than a means of investment. Due to cryptocurrency volatility, they attract investors seeking high rewards through high risks. However, since flagship cryptos have begun to stabilize, the situation is changing. 

Accredited investors prefer to invest in bitcoin long-term through crypto funds. While the average person can’t invest in crypto funds, crypto exchanges and trading platforms have made it possible even for complete novices to invest in cryptos. 

Seasoned Bitcoin enthusiasts are ardent advocates of long-term investing in their favorite currency because, as a limited asset with no inflation, it can become a digital replacement for gold.  

The Bitcoin community has jokingly coined the phrase ‘HODL,’ reminding investors not to sell their digital assets during turbulent times and focus on the long run. The history of Bitcoin has proven them suitable, and increasingly more investors are jumping in on the ride. 

Crowdfunding has also gained prominence, thanks to the development of cryptocurrency. Investors are often reluctant to invest in new products and services. Investors can now make smaller investments instead of large ones using digital currencies. 

ICOs are becoming a popular tool for start-up ventures. They offer an in-demand source of capital. 


Across all industries, more and more companies are capturing the advantages of cryptocurrencies and blockchain technology. 

However, since crypto comes with certain levels of uncertainty in terms of government regulation, many businesses are still reserved and have opted to focus solely on blockchain technology instead of cryptocurrencies. 

Once governments worldwide take a crystal-clear stance on Bitcoin, we will see the full scope of the crypto revolution. 

* The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.
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