Using Crypto for business and making it pay. Crypto assets can increase your income as you lead into this disruptive technology
Estimated reading time: 5 minutes
Table of contents
What are Crypto assets
Blockchain technology has created a whole host of Coins that offer ways to use this technology.
The most famous is Bitcoin which is both a store of value and a trading entity that will carry change to the end of the century.
The other Alt-coins offer transaction advantages over current methods using non-centralized peer-to-peer transfers.
I have found three great advantages for business
- Nonfungible tokens (NFT)
- A store of value
- Transactional advantages
NFT's
In accounting a Fungible can be changed for the same value, a $10 note for two $5 notes as an example however a NON-Fungible retains its original value. This is represented by a token that indicates ownership and authenticity of the asset based on the Block Chain technology.
A non-fungible token is, most simply, a unique digital asset. It can be a photo, a logo, a meme, a music album, a basketball highlight, a collage, a tweet, a newspaper article, a video; basically, anything that you can get online.
Brian Gordon
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Furthermore, each time the original is sold the owner can get a share of the proceeds.
Therefore If you have an asset that needs protecting you can create an NFT
A good example of an NFT is art. An original painting requires the authenticity of the product before it can be traded. Creating an NFT establishes ownership by recording all transactions in
a Block Chain ledger. Ethereum was the creator however others have followed over time.
The art is original and can only ever have one owner, however, it may be sold for value and the ownership change noted in the chain.
Using Crypto for business as a store of value
A crypto-asset store of value
With the introduction of the Blockchain, we were first introduced to Bitcoin as a store of value.
The real beauty of Bitcoin is that it is a world Coin with a value built on investment.
It also has peer-to-peer transactions that do not require a central body to monitor the activities. A person in Africa can trade with someone in Alaska with both understanding of the transactional value and it can be achieved in seconds for pennies.
Secondly, there is a limited supply of the coins established when it was first launched and that supply will run out at some time. This will mean a shortage of supply increases the demand and inflates the price.
Bitcoin is a digital currency.
Growing at 100% per year
Gold as value
Traditionally we would willingly invest in Gold because it has a market price. a scarcity value and secondary use. The market for Gold is currently just under the US $10 Trillion and we hope it is in secure vaults somewhere in the world, if not under the bed.
This is a Gold based Asset.
No increase in price over the past decade
Fiat or local currency in notes is a store of value however it is subject to inflationary pressures. We have seen in some countries where the value of the currency has been destroyed by inflation. EG Argentina where the annual inflation rate was up to 50%>
Unfortunately, first-world countries are now facing a similar problem and trying to hide it by printing more money. It will never work
Depreciating by over 6% a year
You can buy and sell using Bitcoin or any of the altcoins.
A recent example is where Tesla allowed people to buy cars with Bitcoin.
Furthermore, he announced today that you could use Dodge Coin to buy some products.
Whilst this is a joke by Musk it does show what can be done.
Selling products and paying subscribers is bigger than I want to go here but the prominent US accountants did a great job of explaining it
Legal stuff and ways to use Crypto as a trading currency
Remember that Bitcoin is broken down into a hundred million Satoshis so anyone can buy a coffee with it.
Conclusion
Crypto trading will form part of your thinking for years to come so getting an understanding early will help you get the rewards it offers.
Putting spare cash into an account may inflation-proof your investments with a better than average return.
Again Elon Musk was criticized for putting in US$1.4 billion which sent the market down. Now about 6 months later it is worth over 2 Billion and a very handy profit.
Using Crypto for business by Peter Hanley
