Intelligent SME.tech Issue 49 | Page 14

// TECH TRENDS //

WHY SMES ARE ONBOARDING TO THE CRYPTO REVOLUTION

Large institutions from Tesla to Blackrock have been investing in Bitcoin for years , but most SMEs still haven ’ t joined the revolution . That ’ s hardly surprising given that smaller businesses are focused on day-to-day operational concerns and surviving in a cut-throat market . What use is Bitcoin to them ? Danny Barugh , Founder & Chief Executive Officer , LondonLink , explores the specific benefits of Bitcoin for SMEs and explains how forward-looking smaller businesses are harnessing Bitcoin to transform their operations , solve long-standing problems and open up new revenue streams .
Danny Barugh , Founder & Chief Executive
Officer , LondonLink
HAT POSSIBLE USE could

W a small business have for cryptocurrencies ? SMEs might well think that digital assets like ‘ crypto ’ are only for big businesses and major financial institutions and that they ’ re irrelevant to the day-to-day needs of smaller firms .

To be clear , crypto isn ’ t for every SME . Yet thousands of smaller firms are embracing the digital asset revolution and for reasons that might surprise you . They ’ re not engaged in speculation , but instead harnessing the power of crypto to cut costs , reach new customers and open new markets – considerations that should chime with every ambitious smaller business .
What actually is crypto ?
The first obstacle many SMEs run up against is the language barrier . The crypto lexicon is vast and often confusing , with terms like ‘ digital asset ’, ‘ crypto ’, ‘ crypto asset ’ and ‘ cryptocurrency ’ used interchangeably . It ’ s important , then , to establish some consistent terminology .
A digital asset is simply something that is created and stored digitally , is identifiable and discoverable and – crucially – has or provides value . A crypto asset on the other hand is a digital representation of value or contractual rights that is cryptographically secured through the use of distributed ledger technology ( DLT ), otherwise known as a Blockchain .
Cryptocurrencies take the concept further : they are assets that function as virtual or digital currencies , where cryptography is employed to eliminate counterfeiting or double-spending . Some cryptocurrencies are ‘ pegged ’ to a government-issued currency like the dollar . Examples of such ‘ stablecoins ’ include Tether USD or Circle USD
The crypto opportunity for SMEs
To understand how crypto can help your business , the best place to start is by examining how use cases differ between SMEs and multinationals . For the latter , crypto is typically seen as ‘ digital gold ’; a hedge against inflation and just one asset among a large and diverse portfolio .
Smaller firms don ’ t have the luxury of stuffing money , digital or otherwise , under the metaphorical mattress . Instead , SMEs that adopt
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