If you’re part of any crypto group, you will no doubt have seen a flurry of posts asking when Bitcoin – and the wider crypto markets for that matter – will start to turn bearish and send Bitcoin to the moon. A lot of answers appear to be the same – institutional investors will save the day. Now, while there is some truth in the possibility that institutional investors could save the day and pump Bitcoin higher than we have ever seen, there is a better way to turn things around.
Bitcoin is a Utility, Not a Security
Pitfall number one of the current Bitcoin market is that too many people are treating Bitcoin like a security rather than a utility. Sure, buy Bitcoin and hold it for a while, but that’s not its intended purpose. Bitcoin was built to be used as a currency – hence the name cryptocurrency. If Bitcoin was used for its true and intended purpose then the price would become more stable and we would see significantly less volatility, rather than the huge drops that occur when people panic sell.
Businesses Need to Accept Crypto
If these institutional investors decide not to show up and help give Bitcoin the price boost it needs, more businesses accepting crypto would do the same job. This links back to the first point that Bitcoin is designed to be used as a payment method. If people suddenly have the ability to do something with their Bitcoin – such as buy a round of drinks or their weekly shopping – they will start doing that as opposed to panic selling.
There are plenty of solutions out there that businesses can start using to accept cryptos and mitigate volatility risks. BitPay allows businesses to accept cryptos and instantly convert it into fiat, meaning there is no exposure to market volatility, making transactions effortless for the most part.
Tax Laws to Make Accepting Crypto Easier
If businesses were worried about tax season and not declaring the correct amount, this fear could actually be overblown. Most governments around the world have introduced tax laws for cryptocurrencies – meaning it’s easier than ever to pay the correct amount of tax. HMRC in the UK has just added new crypto tax guidelines and there are some great apps out there that will help calculate the final bill for you.
So, rather than waiting for the saving grace that is allegedly institutional investors, encourage your local businesses to start accepting cryptos. Once there is a decent network of firms accepting cryptos, the price will become more stable and long-term bearish markets will be a thing of the past. If you’re a business operator, be a part of the future and accept crypto as a form of payment.