Crypto Kind of a Big Deal to Small Businesses

Newspage asked small UK businesses from all sectors (from IFAs, brokers and retailers to psychologists, beauticians and IT companies) whether they would accept payments for their products or services in Bitcoin or other cryptocurrencies.

Cryptocurrency has been around since 2009, but with publicity like Elon Musk’s continued endorsement of Dogecoin and Crypto.com renaming Los Angeles’s Staples Center to the Crypto.com Arena, it’s become one of the latest hot topics in popular culture.

With that mainstream relevance, however, has come a steady decline in the price of two of the major cryptocurrencies in Bitcoin and Ethereum Classic. But how are small businesses in the UK reacting to this and its potential financial impacts?

Newspage asked an undisclosed number of small UK businesses from all sectors (from IFAs, brokers and retailers to psychologists, beauticians and IT companies) whether they would accept payments for their products or services in Bitcoin or other cryptocurrencies.

The results were mixed. 56% of those polled said they would, 44% said they wouldn’t. Newspage also invited them to explain their reasons, with 25 select responses chosen.

Let’s take a quick look at some of those responses and the reasons these owners gave for their answers.

For Crypto

The reasoning from the ‘Yes’ crowd is all fairly similar: it’s the march of progress, the inevitable future, etc.

Bolton Business Finance’s Marcus Wright believes that some “business and finance Luddites are in for a rude awakening in the next 5-10 years” and cited crypto’s $2 trillion (£1.5 trillion) market cap worldwide as proof that the likes of Bitcoin is here to stay.

Rob Gill from Altura Mortgage Finances stated “with services such as Coinbase so easy to use and access, there’s no practical reason why businesses should not accept Bitcoin as a method of payment given it can be quickly and efficiently converted into any major currency”.

Though this highlights an issue with cryptocurrency as a legitimate alternative to traditional currency: it still needs to be converted back into “major currency” for most functional use cases.

Paul Harfleet, founder of avian-focused design company Birds Can Fly, thinks “it’s essential to explore the potential of all digital currencies from Bitcoin to NFTs”. However, he also expressed concerns regarding the “impact on the environment given the vast amounts of electricity needed to mine for Bitcoin”.

Some, like New Forest Aquaponics’ Lucie Mann, were fairly down on Bitcoin specifically but advocated for other crypto, like Brikcoin.

Against Crypto

The ‘No’ arguments (if they gave arguments at all) mostly came from three camps: ignorance of what crypto is and how it works, worries of its environmental impact, or concerns over its stability and potential use for criminal activity.

Dr. Marianne Trent was not receptive to crypto at the moment but felt that “if mortgage lenders and supermarkets started accepting cryptocurrencies, they may feel more tangible and less terrifying”.

This sentiment was common amongst those who denied Bitcoin on grounds of not knowing how it worked. If larger mainstream financial institutions began adopting the trend, they would feel more comfortable following.

Scott Gallagher, a Director for Rowley Turton, found himself in the third camp, saying: “By accepting Bitcoin as payment, businesses risk losing all of their profit on that sale simply due to any fall in the Bitcoin price that happens before they can convert the Bitcoin into Sterling.”

Martin Roberts of cybersecurity firm Neuways stated: “The value fluctuates wildly and has all the hallmarks of a bubble. A few people will win and if history tells us anything, many will lose.”

The final word, and a quirky view in a way, goes to Malcolm Baker, proprietor of Halo Dart Frogs.

He said “absolutely no way” to Bitcoin but did admit that he “would consider payment in the form of other reptiles and amphibians”.

Zephin Livingston
Zephin Livingston
Zephin Livingston is a content writer for eWeek, eWeek UK, IT Business Edge, and SoftwarePundit with years of experience in multiple fields including cybersecurity, tech, cultural criticism, and media literacy. They're currently based out of Seattle.
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