Cryptocurrency continues to be a trending topic globally. As more public figures show their support for crypto, it is becoming increasingly widespread among investors. More and more platforms are beginning to accept crypto as a currency. Celebrities and influencers have used social media to vocalize their support as well as share their success and even promote their own meme coins.
The number of crypto users in the world is estimated to have increased by 40 million in the second half of 2024. As a result of the increased number of users globally, many cryptocurrencies increased in value over the last year. For example, Bitcoin, a top-performing asset, rose by 125% in 2024.
However, the latest Bitcoin price shows that the value of these funds is still highly fluid and occasionally volatile. Bitcoin’s price volatility can have a massive impact on the retail industry, particularly for businesses that choose to accept cryptocurrency as a form of payment.
The Plus Side of Crypto for Retailers
It’s obvious why some retailers would choose to accept Bitcoin and cryptocurrencies like it. A substantial, very vocal portion of the population is vehemently interested in cryptocurrency and actively invested in its well-being and success. Individuals who have sunk thousands of dollars into the crypto market have skin in the game, so to speak, and are going to go out of their way to support anyone whose efforts are actively working to legitimize crypto as a form of currency. Because of this, accepting cryptocurrency as payment can be leveraged in marketing and advertisements to net an even wider audience, benefitting the business’ sales.
The Challenges of Crypto
Of course, while that sounds great, it’s not quite that simple. Numerous challenges arise when it comes to exchanging cryptocurrency for actual real-world goods and services. For instance, if you were to go to your local store and buy a hat, it might cost you $20. And if you go back to that same store to buy that same hat tomorrow, it will still cost $20 because the value of your American dollar has remained a firm constant. However, if you were to buy that hat with Bitcoin, the price of the hat might have to be drastically altered from day to day (if not hour to hour) based upon the value of Bitcoin itself. The value of such cryptocurrencies fluctuates to such a high degree that adjusting prices and managing conversion risks can present huge workloads for retailers in and of themselves.
Fixing Crypto Charges: What You Should Know
To combat this, many major retailers who have made efforts to accept cryptocurrency as a viable payment option, have taken on additional tools, which they can use to monitor the value of a given crypto token in real-time and automate payment conversions based upon it. In theory, these tools are similar to a debit card reader. The customer will scan the information relating to the cryptocurrency account, and the retailer’s system will attach it to the sale and finalize the sale later. However, as one can undoubtedly imagine, this comes with its own unique hurdles, such as disputed costs and discrepancies in Bitcoin value between the time of purchase and the actual finalization of the charge.
Because cryptocurrencies can be volatile and still unpredictable in value, many retailers have shied away from incorporating them into their regularly scheduled programming. However, as public figures continue to endorse cryptocurrency, it’s becoming an unavoidable reality that the latest Bitcoin price may dictate the value of that hat. 2025 is likely to hold lots in store for the crypto market.
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