“Decentralized Science: Revolutionizing Medical Diagnosis with Generative AI”

Futuristic AI

To start, AI technology has been around since the 1950’s, but as of recently, specifically in 2017, ‘Generative AI’ took the world by storm. Businesses around the world have quickly adapted and adopted the new AI technology, experimenting in a multitude of different areas, such as finance, education, law, science, and healthcare, where they have already changed the landscape for how those industries will operate.

What is Generative AI?

Generative AI uses Large Language Models (LLMs) that break down data (i.e., words, letters, punctuation, symbols, spaces, etc.) into tokens that represent a sequence of characters either individually or grouped with other characters. Each LLM uses a particular list of tokens (e.g., GPT-2 language model uses a vocabulary of 50,257 tokens. Each one of the 50,257 tokens is given a unique identifier where the AI takes in a large amount of data (i.e., inputs), and then learn

s how the tokens are used within the data inputs, thus using probabilities to predict and determine what token will follow the last. These LLM’s are able to do this because of something called a ‘transformer’. Transformers allow AI to understand language better now than ever before because transformers have the ability to analyze an entire data set in the blink of an eye, taking every character (i.e., token) into consideration, whether the dataset is just a sentence, paragraph, book, magazine article, etc. Another key component that has allowed Generative AI and transformers become better and better at predicting what the next word in a sequence will be because of a concept called ‘self-attention’. Self-attention allows LLMs to understand the relationship between words (i.e., tokens) and is able to give them a value which helps it determine what words are the most important to understand the intended meaning, thus greatly helping the LLM’s capability to predict the next character/token in the sequence. In short, the more data that is fed to the LLM, the Generative AI self-attention feature will have a better understanding of how to weigh the characters/tokens from the inputs given to it, thus the AI model will become better at predicting what the next word should be.  

OpenAI

A very popular and familiar Generative AI chatbot, Chat GPT, created and owned by OpenAI was launched November 30, 2022. The chatbot quickly became the talk of the town and all of social media was sharing samples they had, ranging from written poems, travel planning, stories, etc. Now almost 2 years later, Chat GPT seems to be the frontrunner in the AI space to change how customer service, education, business, healthcare, etc., are run.

Generative AI being Leveraged in Healthcare– Axon Dao

It’s no secret that LLMs generative AI capabilities are going to be the future for an industry that is predicated on predicting future outcomes or early diagnoses based on symptoms, such as speech impairments,  physical ailments, or physical abnormalities. Axon Dao, a company whose inception was in 2014 has since evolved into a company that leverages and utilizes AI and blockchain technology to monitor vocal biomarkers in humans to detect conditions such as Alzheimer’s, Parkinson’s Dementia, PTSD, and Huntington’s Disease. These vocal biomarkers have also been used to evaluate energy levels, and Axon Dao has stated this could be the future where individuals are evaluated before driving commercial trucks, cars, and/or operating large machinery.

Axon Dao uses its computational platform’s data inputs to create their generative AI predictor model that was originally designed to develop extremely sophisticated machine learning models, but has since integrated and now supports voice data analysis. Axon Dao utilizes blockchain technology to ensure data remains unaltered, secure, and traceable for all individuals who choose to share their data, for which they state that this allows individuals to have complete ownership and control over their data, thus enhancing trust by giving individuals the power to decide who can access their data for research purposes.

What would be the incentive for individuals to give up their medical data to Axon Dao?

The incentive for an individual to grant Axon Dao the ability to store their data and share with other researchers comes in the form of paying individuals in a cryptocurrency on the blockchain called AXGT (Axon Dao). The distribution of coins to Axon Dao’s users ensure that individuals continue to provide medical data that is needed for further developments, and it also ensures researchers, doctors, scientists, etc., have all the data they need to make vast improvements in the healthcare industry.

Is Axon Dao similar to OpenAI in A Sense of how their company operates and how their AI works?

Axon Dao and OpenAI are vastly different when it comes to how their companies and AIs operate. For instance, Axon Dao rewards its users with a form of currency to collect their data, OpenAI does not. Axon Dao is controlled by their community, and Axon Dao allows one to control and determine the visibility of their data throughout the process, OpenAI does not. Axon Dao operates as a central hub for any individual, including scientists, Dr’s, or research labs to contribute their data to their AI algorithm, OpenAI does not. Axon Dao also allows for researchers who are part of the DAO to propose new research ideas, which are voted on, and then potentially approved, OpenAI does not.

Pioneers like Axon Dao, whom have chosen to pave the way for future advancements within the medical industry by incentivizing individuals to voluntarily give their medical data for the betterment of humanity, potentially leading to breakthroughs, especially when it comes to pre-symptomatic detection, early-stage detection, and early intervention in Alzheimer’s, Parkinson’s Dementia, PTSD, and Huntington’s Disease have already changed the healthcare/research industry. Companies like Axon Dao have the potential to grow large very quickly, and I believe the time is now for someone looking to start a business and/or get involved with a start-up business of this kind to not only help yourself out financially in the future, but also, to help out humanity.

 

 

 

 

 

 

 

 

 

 

Citation

  1. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC11019981/
  2. https://ig.ft.com/generative-ai/#:~:text=Transformers%20process%20an%20entire%20sequence,or%20generate%20%E2%80%94%20text%20more%20accurately.
  3. https://blog.miguelgrinberg.com/post/how-llms-work-explained-without-math
  4. https://axondao.io/project-avoice.php

Citation— Pictures

  1. https://blog.gopenai.com/large-language-models-llms-a-brief-history-applications-challenges-c2fab10fa2e7
  2. https://voicebot.ai/2023/12/18/openai-startup-funds-converge-accelerator-starts-accepting-new-applicants/
  3. https://axondao.io/how-axon-works.php
  4. https://www.neebal.com/blog/generative-ai-vs.-predictive-ai-unraveling-the-distinctions-and-applications
  5. https://twitter.com/AxonDAO/status/1762093735876165728/photo/1

 

 

Breaking Down IRC 6050I: When Cryptocurrency Transactions Make Uncle Sam Curious

As blockchain technology and cryptocurrency continue to progress forward, three fundamental questions remain— what is cryptocurrency? How is the United States Government ‘labeling it’ (e.g., currency, security, commodity, etc.) for regulation purposes, and how should a business report a cryptocurrency transaction? Well, the answers are not simple. The current climate surrounding cryptocurrency has brought about even more confusion as new players (i.e., institutions) continue to enter the arena, but one thing we know for certain, the ‘tax arm’ (i.e., IRS) of the U.S. government will have their hand in the cookie jar in the preceding years to come.

To start, what is Blockchain technology?

In short, a blockchain is a distributed ledger system shared across a network of interconnected nodes (i.e., interconnected computers) that catalogs all transactions done on the blockchain by storing the transactions into a block (i.e., store of information), where it places each transaction in sequential order, timestamps all the transactions. This system is completely decentralized unlike a bank where there is one player (i.e., bank) involved, the blockchain has and can have an unlimited number of nodes (i.e., computers) validating the transactions on the chain by providing a consensus amongst each other.

How Does Blockchain Technology and Cryptocurrency Interconnect?

Blockchain technology does not need cryptocurrency but cryptocurrency needs blockchain. You may be wondering— what does that mean? Well, blockchain technology is used as a store of information, thus has many use cases that extend beyond cryptocurrency, such as smart contracts (i.e., self-executing contracts), supply-chain management (i.e., tracking production, shipment, receipt of products, voting systems (i.e., tamper-proof voting mechanisms), healthcare-related information, etc. However, when one speaks of cryptocurrency, what they truly mean is ‘stored information’ that has been given a value based upon what the market (i.e., public) believes it to be worth vs. other currencies and commodities in the world, and/or uses the blockchain to transact upon as a secure validation method to move stores of value. The blockchain is the preferred method of use for cryptocurrency because the information (i.e., signature) of the coins needs to be verified, thus to keep from fraudulent behavior, such as someone creating a similar coin and posing as the real coin, the blockchain validators make sure that the ‘information’ (i.e., cryptocurrency) has the same information signature across all transactions. (Still working on this paragraph to clear up the difference between the two in a concise manner).

What is Internal Revenue Code (IRC) 6050I?

IRC 6050I was enacted in 1984 as a way to curb the flow of illicit money used in drug trafficking and money laundering. Under this code, any business receiving more than $10,000 in cash in a single transaction is required to report the transaction to the Internal Revenue Service (IRS). In recent years, the word “cash” as used in IRC 6050I has brought many questions about digital assets like cryptocurrency, and whether they can they be defined within the definition of “cash”.

Form 8300 Reporting:

Form 8300 is used to report the cash payments over $10,000 received in a trade or business, and on this form the details must include the transaction, the business that received the cash, and must identify the person from whom the cash was received from.

Why IRC 6050I Matters to Businesses Accepting Cryptocurrency?

As of January 1, 2024, a business that receives more than $10,000 or more in cryptocurrency must report the transaction to the IRS within 15 days. The old money laundering bill was reviewed and updated to include digital assets under 6050I when Biden signed into law the Infrastructure Bill. However, the IRS is not going to enforce this until there is Congressional backing, and Congress passes legislation clarifying that digital assets are included in the definition of “cash” under 6050I.

The Potential questions that surround 6050I if and/or when Congress passes legislation including ‘digital assets’ within the definition of ‘cash’.

How will the recipient of a digital asset file the 83 00 forms when they do not know the sender (e.g., Reception of cryptocurrency from a Decentralized Autonomous Organization (DAO), Decentralized Exchange (DEX), and/or an anonymous individual (ANON)? Remember, the information of the sender (i.e., SSN, the amount paid, date, nature of the transaction, etc.,) must be sent to the IRS within 15 days or there could be felony charges.Question Mark (?) Interrobang - agreatdream.com

How will an airdrop of unpriced coins be valued? How will cryptocurrency mining and staking rewards be treated?

When will a transaction with a digital asset be considered a trade or business transaction vs. an investment? Courts and the IRS have often looked at several factors to determine if any activity qualifies as a trade or business, which are: Regularity and continuity of the activity; Intent to make a profit; and Level of activity. It should be noted that retail traders typically aren’t seen as a “trade or business,” but considering the circumstances surrounding cryptocurrency, things like engaging in staking, running validator nodes, and/or if one were to trade frequently could bring about a new classification.

IRC 6050I

In conclusion, the anonymous nature of cryptocurrency could make it extremely difficult for businesses to stay compliant in their course of business when they receive $10,000 or more of cryptocurrency payments on the blockchain from sources that have no identification (i.e., DAOs, ANONs, and/or DEXs), or in terms of cryptocurrency, no value as of the time of reception (e.g., airdrop). However, the world of cryptocurrency and the mandatory reporting for businesses transacting $10,000 or more will not be enforced until Congress passes legislation.

 

Citations:

https://online.stanford.edu/how-does-blockchain-work

https://www.investopedia.com/terms/b/blockchain.asp

https://www.irs.gov/government-entities/indian-tribal-governments/itg-faq-1-answer-what-is-irc-section-6050i

https://www.eisneramper.com/insights/tax/digital-reporting-6050i-1223/

https://www.forbes.com/sites/digital-assets/2024/01/04/a-new-provision-of-an-old-law-is-confusing-crypto-investors/?sh=41c52f324415

https://blockworks.co/news/new-crypto-tax-reporting-obligations-us

https://cointelegraph.com/news/8-word-crypto-amendment-in-infrastructure-bill-an-affront-to-the-rule-of-law

Picture Citations:

https://www.forbes.com/sites/digital-assets/2024/01/04/a-new-provision-of-an-old-law-is-confusing-crypto-investors/?sh=5c985d504415

https://www.cointracker.io/blog/is-crypto-subject-to-the-new-irs-ss6050i-reporting

https://cryptoslate.com/crypto-tax-rules-now-require-reporting-of-transactions-over-10k/

https://www.pinterest.com/pin/150307706292829681/

https://www.linkedin.com/pulse/new-crypto-reg-form-8300-reporting-section-6050i-jeff-rundlet-cfa-7yoke/

https://cointelegraph.com/news/8-word-crypto-amendment-in-infrastructure-bill-an-affront-to-the-rule-of-law

https://101blockchains.com/staking-vs-yield-farming-vs-liquidity-mining/

https://steemit.com/bitcoin/@buhl/cryptocurrency-2017-taxes-uncle-same-wants-his-cut

https://agreatdream.com/question-mark/

 

The Look of the Future for Compensation Packages

US Dollar Dead? Banks Collapsing! Cryptocurrency Compensation for Work Sky-Rocketing!

Collapse of the US Dollar?

The recent craze to have employers pay employees in Cryptocurrency may very well be here to stay. For the last 70-80 years the US dollar has dominated as the Global currency; however, in recent years the US dollars volatility due to inflation from the Federal Reserve printing an endless amount of money not backed by anything, has caused countries around the world and individuals within the United States to call into question the

stableness of the US dollar. Inflation numbers that we have not seen in many years have countries and individual’s looking for safe havens to keep their capital in, so that the printers of the Federal Reserve do not rob them of their hard-earned money. Some have looked to real estate, some have looked to the stock market, but there is one asset that seems to be gaining more and more traction over the last couple years, and that asset is cryptocurrency, Bitcoin and Ethereum in particular.

Should Employees Use Cryptocurrency Compensation to Hedge Against Inflation?

Cryptocurrency, mostly Bitcoin and Ethereum, have become increasingly popular in the world of finance as a hedge against the world’s currencies. Bitcoin and Ethereum operate on a decentralized system, meaning it is not controlled by any government or financial institution. This new chain 

of events with bank failures happening and more of these similar situations on the horizon, individuals have asked employers to pay them in cryptocurrency because they can self-govern their own funds and take out the middle man (Banks), who has been extremely risky, and, in some cases, grossly negligent with the way they held and operated their reserves.

Some businesses have started to explore the use of cryptocurrency and Bitcoin as a way to compensate their employees. Ex CEO of Twitter and Square, stated in 2021 in a tweet, that he would pay his employees in Bitcoin if they wanted to be paid that way. Lindsay Lohan, a big-time actress, has been extremely vocal about her support for cryptocurrency, and in 2018, Lohan tweeted that she wanted to be paid in Bitcoin for her work on a new movie. Other notable high-profile examples include New York City Mayor Eric Adams, who said he would receive his first three paychecks via Bitcoin in 2022. Aaron Rodgers, a long time Green Bay Packers Quarterback and 3-time MVP, stated he will be receiving a portion of his 33.5 million annual salaries in Bitcoin. These are only a couple of individuals from a long list of employees who have asked to be paid in cryptocurrency.

 

Benefits to Employers and Employees

 

Protect Against Inflation:

The biggest benefit at the moment that employers have is it gives their employees a way to protect their wealth from the inflation of the US dollar. This would help maintain the value of their salaries and bonuses over time.

Attract New Talent:

Offering cryptocurrency compensation or bonuses could be an attractive perk for employees, particularly for those who are interested in cryptocurrency and the potential for investment gains.

 

Differentiating One’s Business from the Competitors:

Offering cryptocurrency bonuses would help differentiate themselves from their competitors. This could be extremely important in industries with high levels of competition for talent.

 

Low Transaction Fees:

Cryptocurrency, in particular Bitcoin transactions have lower transaction fees than traditional payment methods. Which in turn could save the businesses money on transaction fees.

 

Easy to Use:

Cryptocurrency can be accessed anywhere in the world, which makes it easy for businesses to offer Bitcoin bonuses to remote workers or employees in different countries.

 

Drawbacks of Offering Bitcoin Compensation and Bonuses

 

Volatility:

Cryptocurrency and Bitcoin prices can be highly volatile. This means that the value of the bonus can change rapidly, which can make it difficult for businesses to budget and plan for bonuses.

 

Limited Acceptance:

Although Cryptocurrencies are growing, they are still not widely accepted by all merchants and businesses. So, employees receiving cryptocurrency compensation may have difficulty using it to make purchases or pay their bills.

 

Regulatory Challenges:

At the moment Cryptocurrency is not regulated by any government or financial institution, which can create regulatory challenges for business, and it can create uncertainty for employees, who would be concerned about the legal status of their bonuses.

 

All in all, we are seeing society change right before our eyes, and unless the Federal Reserve turns off the printers and gets inflation under control, it may be wise for employers and employees to have some of the compensation given to be in Cryptocurrency to hedge against the ever-growing inflation of the US Dollar (World Currency).

 

 

Sources:

 

https://nypost.com/2021/11/02/aaron-rodgers-says-hell-take-some-of-his-salary-in-bitcoin/

 

https://www.worklife.news/talent/cryptocurrency-benefit/

 

https://www.hourly.io/post/considering-paying-employees-in-cryptocurrency

 

https://venturebeat.com/datadecisionmakers/using-cryptocurrency-to-attract-and-retain-employees/

 

https://nypost.com/2021/11/02/aaron-rodgers-says-hell-take-some-of-his-salary-in-bitcoin/

 

 

Sources for Photos:

 

https://www.cnbc.com/2021/11/29/jack-dorseys-twitter-departure-means-more-time-for-bitcoin-passion.html

 

https://www.glamour.com/story/lindsay-lohan-wants-to-do-a-mean-girls-sequel-and-thats-honestly-so-fetch

 

https://twitter.com/AaronRodgers12/status/1455256506601984002?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1455256506601984002%7Ctwgr%5Ecda909ef67d980ace20dd5d26e0415dce4c91506%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fnypost.com%2F2021%2F11%2F02%2Faaron-rodgers-says-hell-take-some-of-his-salary-in-bitcoin%2F

 

https://www.youtube.com/watch?v=cef6TzgIy2U

 

NFTs ARE THE FUTURE

NFTs ARE THE FUTURE

In recent years, Non-Fungible Tokens (NFTs) have emerged as a new way for businesses to monetize digital content. NFTs have really gained popularity with artists, musicians, video game developers, and other creators because of the ease of transferability between users, and they give users an authentic and transparent way to sell and collect digital assets. But, the big question circulating many communities is, how can they help businesses generate revenue?

WHAT ARE NON-FUNGIBLE-TOKENS (NFTs)?

Non-Fungible Tokens (NFTs) are digital assets that are stored on a blockchain network. NFTs are unique and can represent a multitude of specific items, such as digital art, music, videos, in-game assets, etc., which are unlike cryptocurrencies. Cryptocurrencies and NFTs are both on the blockchain, but unlike cryptocurrencies, NFTs have a uniqueness about each one whether that is the picture on them or the number associated with that particular blockchain item. In other words, if an individual tried to swap one Bitcoin for another Bitcoin, there would be no loss or gain on the transfer because both coins are always equal to one another. However, when one possesses and/or transfers an NFT for either money or another NFT, the value of the transfer is completely dependent upon the uniqueness of the NFT, similar to how one pays more money for a piece of art from Monet or a Picasso over an artwork done by Maria Esmar.  

WHY USE NFTs INSTEAD OF REAL ART?

NFTs are created using smart contracts and these contracts contain the metadata of the NFT, including its unique identifier, ownership history, and other attributes. Because these unique pieces of art are stored on the blockchain network, they are secure and transparent, allowing anyone to easily verify the ownership and/or authenticity of the NFT without fear of receiving a fake.

HOW CAN A BUSINESS CREATE REVENUE FROM NFTs?

First, businesses can sell NFTs to bring in additional revenue, bring additional awareness to an issue, or bring in and keep consumers buying their product by incentivizing holding these pieces of artwork. When a business chooses to sell NFTs, they may just want to bring brand awareness to the public about their products. For example, huge companies such as McDonald’s, Nike, Louis Vuitton, and Gucci have created and issued NFTs within the past couple years to generate brand awareness. In addition, businesses, such as Rewilder have changed the game when it comes to bringing awareness to environmental issues. Rewilder, a non-profit organization interest in charity work, has used NFT auctions from their own artwork to raise funds to buy land for reforestation. In 2022, they claimed to have raised roughly $241,700. Moreover, other businesses have sold NFTs where the money went to orangutan conservation charities. This may sound childish at first, but a group of buyers bought 1 NFT, I repeat 1 NFT, the one shown to the left, for $92 million dollars.

 

NFTs USED IN MUSICAL ART

Second, businesses can offer NFTs that give customers exclusive access to certain products, features, or services. Prominent artists in the music industry, including Snoop Dog, Eminem, Shawn Mendes, Linkin Park, and Whitney Houston have all used NFTs to release new singles, old singles, or evenold albums. This not only created more awareness about each one of them but also brought in additional revenue. For example, in 2022, Snoop Dog’s new album B.O.D.R. (Back on Death Row), had one of the most successful music NFT launches amassing around $44 million in revenue.

NFTs AS IN-GAME ITEMS IN VIDEO GAMES

With all that being said, the future gaming businesses, whether that be computer or consoles, have the most untapped potential to really use NFTs to change the landscape for how games are marketed and played. In most games, individuals playing have ranks, skins, weapons, attributes, etc., but what if the gaming industry tied every asset in these video games to an on-chain NFT that could be sold to the public. This could create more incentive to play these video games because if they knew they could sell in-game assets for real cash, more individuals would surely play in hopes to earn these assets. You may wonder how this benefits video game producers and businesses, well, just like with intellectual property in real life, the producers and businesses could place a royalty on all NFTs sold on the markets, which would not just allow them to sell the game to an individual for profit, but to continue to profit off of these individuals for the duration of their play as long as they continued to buy and sell NFTs.

NFTs USED TO ADVERTISE IN THE VIDEO GAMES

As outside companies begin to look for new and innovative ways to reach a wider consumer base, their marketing strategies will change. The new generation of adults have played video games their whole lives, so what better way to market to them then to advertise in the video games they play. You might ask, how this could work, and how you could get more adults to play video games and hold NFTs even when their working full-time. The answer is simple, Play-to-Earn video games. Some video games have already established a business model that incorporates holding NFTs and playing the game for income. For example, Imposters, a social deduction game, pays its players when they win the game if they are holding an NFT issued by them. So, how can a business afford to do this, well, if there are enormous amounts of individuals playing the video game, then it is common sense that any business external to the video game is going to want their product/service/good being shown to these people. So, these video game businesses can license out NFTs to these external businesses like Amazon or Starbucks, which would give them the right to place advertising within the video game. Just like in any free market, the market would determine how much a business would be willing to pay to advertise within the video game, and most likely, would be based upon how many video game users there are. The link below shows a Play-to-Earn video game. https://www.youtube.com/watch?v=4fgbRbNqOdw&t=19s

In conclusion, NFTs offer a new way for businesses to monetize their digital content and create new revenue streams. These NFTs can be used to offer exclusive access, create loyalty programs, authenticate ownership, and tokenize assets. And as the technology continues to evolve and gain acceptance, we can expect to see even more innovative uses for NFTs in the future.

 

 

 

 

 

https://www.appcraver.com/nft-drops/the-sandbox-nft-know-everything/

 

http://treyspeegle.com/010113/2021/12/12/q1vjgeftajmtx21rfkw6rv16g21czh

 

https://nl.etfree.xyz/index.php?route=product/category&cid=46&cname=louis+vuitton+metaverse+game

 

https://youngplatform.com/en/blog/news/nft-music-10-musicians-that-launched-nft/

 

https://nftandgamefi.com/2022/02/22/snoop-dogg-nft-music-and-44-million-of-success/

 

https://polkastarter.gg/impostors/

 

https://opensea.io/assets/ethereum/0x6199a4a9a290b0b77ff2e113abe9d1ad4ab5ac63/3152

 

 

Magic Internet Money is the Future for Businesses

Does cryptocurrency/Bitcoin, also called “magic internet money”, have the potential to transform today’s reality and how the world does business? I believe so! Already, more than 2,300 US businesses accept bitcoin as a form of payment from an estimate done in late 2020. Some say that Bitcoin has the potential to greatly affect businesses in the present and the future by providing a decentralized digital form of payment that is fast, secure, and global. Here, I will explore some of the ways a business can prosper using cryptocurrencies for business transactions.

WHAT IS BLOCKCHAIN TECHNOLOGY?

To fully understand Bitcoin/cryptocurrency, one must understand that cryptocurrencies are decentralized digital currencies that use blockchain technology to ensure the security and integrity of transactions. So, what does this all mean? Well in essence, the blockchain technology works by maintaining a continuously growing list of records, which are called blocks, that are linked and secured using secret writing, aka-cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. This is done by design because the open distributed ledger that is recording the transactions between any two parties is verifiable and permanent, and cannot be altered or modified in any way. This process creates a network that is not controlled by a single entity but by a group of nodes, also called miners or validators, and any alteration to the blockchain would require more than 50% of the validators to agree on the alteration, thus making it almost impossible to alter data on the blockchain.

CRYPTOCURRENCY HAS THE ADVANTAGE OVER ACCEPTING CREDIT AND DEBIT CARD PAYMENTS

Now, how can a business use this technology to gain the upper hand on the competition? Here, one of the main benefits of accepting cryptocurrency is the potential to reduce transaction costs from credit card payment providers. On average these providers charge around 3-4% on every purchase a customer makes. In turn, some merchants, such as Kroger and Starbucks have chosen to accept or intend to accept blockchain-based payments, which would allow the merchant to accept the cryptocurrency and covert their revenue to fiat currency for less than 1%. Saving 2-3% on all transactions would ensure a higher profitability for any business.

NO SUCH THING AS CHARGEBACKS FOR BUSINESSES WHEN USING CRYPTOCURRENCY

Next, businesses often deal with chargebacks on debit or credit cards from the banks, whether they be from fraudulent activity or not. This can cost the business valuable time fighting these, and ultimately the business could potentially suffer consequences, such as being charged additional fees or receiving various fines. Unlike credit or debit cards, accepting cryptocurrencies like Bitcoin would remove this problem. Once the transaction on the blockchain was completed, the transaction is immutable and irreversible, so, it would be impossible for a customer to reverse the transaction and pull the money from your account and put it back into theirs. Although, this does have the potential for drawbacks, such as, a merchant selling a bad product and refusing to return the cryptocurrency received for it; however, I believe that reviews of companies on the internet would solve this issue very quickly. If a business decided to operate in that way, individuals would shop elsewhere and the business operating in a shady fashion would close down for lack of business. Moreover, from a security standpoint, it is much harder to steal one’s information when using cryptocurrency because a shopper doesn’t disclose his or her private information, whereas when you pay with a credit card, your personal data is revealed to the merchant, the acquiring bank, the card service, and the issuer.

CRYPTOCURRENCY CAN ATTRACT A NEW DEMOGRAPHIC OF CUSTOMERS 

Furthermore, businesses using blockchain technology and accepting cryptocurrencies can help position one’s company to reap the rewards from this important emerging space that could potentially include a Central Bank Digital Currency (CBDC). The acceptance of cryptocurrency could also provide access to a new demographic that values transparency in their transactions. A recent study done and conducted by leading research and advisory firm Forrester Consulting revealed that businesses who integrated BitPay, which is a cryptocurrency payment provider, saw an average return on investment of 327%. This was no surprise to BitPay’s CEO, stating, “accepting bitcoin and other cryptocurrencies through BitPay saves merchants considerably on fees, and unlocks a whole new customer base.” In the study, it was also revealed that 40% of customers that paid with cryptocurrency were new customers and their purchase amounts were twice that of the credit card purchases. Thus, providing more evidence that there are many individuals who are looking to spend their money/cryptocurrency, but don’t want personal information being revealed to banks, credit card companies, etc.

In conclusion, cryptocurrency, also known as “magic internet money”, is here to stay. Businesses in every facet stand to prosper from the use and acceptance of it. Accepting cryptocurrency payments will raise the bottom line of any business by excluding high rates charged by credit card companies, attracting new customer bases, not dealing with chargebacks from banks causing money to be taken without question, and lastly, boosting a business’s average return on investment. Therefore, it would behoove all businesses to start learning about how they could provide cryptocurrency payment methods and to understand how the world of “magic internet money” really works. Here is a quick video breaking down and elucidating in more detail how a business could benefit from accepting Bitcoin/cryptocurrency. https://www.youtube.com/watch?v=ZX7V3Z2jr_s

 

 

 

Sources

https://www.businesswire.com/news/home/20200929005406/en/Study-Shows-Merchants-That-Accept-bitcoin-Attract-New-Customers-and-Sales

https://www2.deloitte.com/us/en/pages/audit/articles/corporates-using-crypto.html

https://www.binance.com/en/blog/payment/benefits-of-accepting-bitcoin-and-other-crypto-for-your-business-421499824684903154

https://techcrunch.com/sponsor/unlisted/why-bitcoin-is-big-deal-for-small-businesses/

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Photo Sources

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https://zipmex.com/learn/elon-musk-bitcoin-price/