Perhaps you came on the site and in your search you discovered that we accept crypto. The common question asked is “why”? The common reply is “why not”?
Money Is Already Digital
You’ve likely noticed that our money is already digital. Most of us do not use cash to make our purchases, at least not in the U.S. or Europe. We swipe our cards, tap our phones, or just stroll out of the store and our accounts are properly billed.
Banks use to transfer cash among each other. Today, that is no longer the case. Nowadays, digits are transferred through computer networks. And within seconds they go from one account into another.
Credit cards had a rough beginning. Dinners Club Card started it all, decades ago. Even in the 80’s and 90’s, there use to be slider machines that would take a copy of your credit card number. Then the merchant had to go into the bank and cash it, much like checks
Today, machines take care of it all within seconds.
Even checks are being deposited over mobile phones today and there is very little needs for us to stand in the lines at the bank counters.
When credit card revolution began, it was seen as very risky. Many people did not want to partake in this new venture. And banks were even less keen on it all.
But that all changed.
New laws came in place. Rules were set up. Structure was created so that we can today enjoy the plastic wherever we go. We have systems in place to use it as we like.
But That’s All Real Money
Well, what is real? Just because it’s accepted everywhere, it does not mean it’s real.
Going back in the history for the moment, yet again, we all believed that slavery was normal. It was very real and normal to us to mistreat others because of the color of their skin. Sadly, some still believe that today.
If we are to visit certain communities, we will discover that Big Foot is real to them. As are aliens and ability to read someone’s mind and take their thoughts, should they forget to wear tinfoil hats.
Money, as we know it today, is not backed by anything. Other than our belief that we can get goods and services in the exchange. And that we can use what we’ve received with yet another exchange.
Contrary to the popular belief, our money is not backed by gold. It is called “fiat money“, meaning it’s made legal tender by government decree.
While yes, most governments haven’t deemed crypto currencies to be legal tenders for our, predominantly tax obligations, it is only a matter of time.
How Does Crypto Work?
Crypto currencies or crypto (the short version) are digital currencies. They are a computer code that rides on what is known as blockchain technology. It uses cryptographic protocols to protect and secure the data.
It is important to understand that blockchain and cryptos are not the same thing. Blockchain technology uses what is known as 3-way ledger to ensure that the purchase or sale of particular product or service has gone through and is accurate.
It uses decentralized ledgers with time stamps, to ensure that ability to mess with the process is nearly zero.
Think of movies where they cook the books… meaning they are able to change what actually happened for the reporting purposes.
With blockchain that is impossible to do.
Sure, it’s easy to do it with one set of books, where the bad guy is the only person in charge.
But in a decentralized, also known as distributed, ledger, there are thousands, even hundreds of thousands of copies of what actually transpired. So while the bad guy can change things on his end, the evidence is easy to pull out and show the proof of what actually happened.
This is the power of blockchain.
Cryptos ride on top of this powerful way to keep track of accounts. And each purchase made through cryptos is recorded multiple times on many different computers that participate in the network.
In my mind, this makes it safer, in many regards to do business.
The transaction is immediate and it’s recorded over and over and over again.
The Risks
Nothing is without risk in life, and especially business. Cryptos are the same way.
While there are many benefits of using cryptos to conduct business, there are also risks associated with them.
- Price Fluctuation
- Lack of Regulation
- Cost of Computing
- Not Accepted Everywhere
- Competition
Let’s take them one by one…
Price Fluctuation
Cryptos are highly volatile. One day they are up 30%, next day they are down 50%. For a person with weak stomach, it’s easy to get sick on this roller coaster ride.
Take Bitcoin, the most well known crypto, as an example. Back in December 2017, Bitcoin was trading at nearly $20,000. A year later, you were able to get it for a bit over $3,000. That’s 85% loss in value. Today (May 2019), Bitcoin is flirting with $8,000, a whopping 156% gain over the low in 2018.
If we go slightly further in history, to December 2016, we will find that Bitcoin was trading under $1,000.
This is the type of fluctuation that makes this particular asset rather risky and highly volatile. And this is why so many people do no want anything to do with it.
Lack of Regulation
A moment ago, I called cryptos an asset. The sad truth is that the regulators do not know how to tag this asset. SEC (Securities and Exchange Commission) struggles whether to call is a security, a currency, or give it a brand new tag name.
Because this asset class is so new, the regulators are doing their best to understand it and create some rules, when it comes to working with it.
Because of the lack of regulation, this industry is a Wild-Wild-West. This means that many will lose the farm and there will be those that will create wealth beyond anything we can imagine.
One thing that has been determined is that there is a difference between a toke and a currency.
So, what’s the difference you ask?
Tokens
use currently developed blockchains to generate money for their companies through investors. They are very similar to stocks (securities). They are often created and held by a company and can be used as rewards or utility systems. Most of them use Ethereum network and smart contracts for their executions.
So for example, I could create my own crypto token that I use for my students at 1 Deal Away. I could give the tokens to students who do the work and they can exchange them on my network for goods and services. I could also use it to get investors and add funds to my business. They benefit from the potential rise in value of my token, as they could get a fancy return down the line.
Currency
uses its own blockchain. These currencies are not privately held or sold by a company. Bitcoin is a great example of crypto currency.
There are additional issues with crypto and government regulations. There are certain countries that make it nearly impossible to be in crypto business, due to regulations. An example would be United States.
However, in places like Cyprus and Lithuania, crypto entrepreneurs are booming.
Traveling throughout United States, I have never seen a crypto currency company advertisement (internet does not count). However, going through Limassol, I have encountered many signs and physical location exchanges for this asset class.
Cost of Computing
One of the downsides of many cryptos is the cost of mathematical computations and the energy used to solve the cryptography required for the transaction.
Because all of crypto is digital and requires some hefty math to solve (and rather quickly), it requires the use of computers and as such electricity to make it all run.
This is another reason why certain countries see many more opportunities within crypto. They not only allow this business, but also have cheap energy, which is what attracts the business.
It Is Not Accepted Everywhere
Unlike Visa, this form of payment is not accepted everywhere… yet.
There are many businesses that do not accept this form of payment. And there are still many individuals who do not have cryptos or use them for payments.
Because the network is small, this is not and cannot be the only way to get paid and earn money.
However, the network is growing at exponential rates and it is only a matter of time before vast majority of us adopts it. The market share is still on the left-hand side of the bell curve.
Competition
It is no secret that there are hundreds of cryptos out there. Vast majority of them are tokens, but to the untrained eye, they all look the same.
Some of them are good. Many of them are bad. But competition exists and it will for a long time coming.
Some can be purchased on nearly every exchange, while to obtain others you may need a miracle (or simply leaving the confines of your country’s internet ability).
The Benefits
I’ve had so much to say about risk, that you are likely now wondering why in the world we would accept crypto currency as a form of payment.
Because there are many benefits for being part of the network and accept this form of payment.
Early Entry Wins
Early participation in many new ventures can have huge benefits. If you properly structure your finances and account for risk, participating in speculative opportunities can give you great returns.
I have specifically used the word “speculative”, because I don’t want you jumping into something thinking it’s guaranteed. That is also a reason why I started with risks.
You need to understand what you’re getting into and whether you can take it. There are many people who YOLO (you only live once) with cryptos that they have lost everything. That is not a sound way to create prosperous future for yourself.
Because it is so early in the game for this asset class and, in my opinion, financial system, the early adopters have a huge advantage over those who are lagging behind. The advantage comes from profitability, but also from comfort and understanding of use. That is why we accept cryto.
What Kind Of Money School Does Not Accept Money?
We are a financial education company. We teach about money, business, investing, finance and mindset to make it all happen. And we eat our own cooking.
If you were to go into a restaurant and discover that the chef and the staff refuse to eat there, you’d likely think twice before you ate there too. Right?
We are not theory based education and we do what we teach. We learn along the ways and pass that knowledge onto you. This reduces your risk and your learning curve, saving you decades and a whole lot of money.
Education For the Unbanked
There are over 2 Billion people in the world who are unbanked. That is 25% of the world. Meaning, they cannot have a bank account or any of the services many of us are accustomed to.
Imagine what your life would be like today if you could not open a bank account or get access to any of the financial resources. How successful could you be if you couldn’t access any of that?
And not only the financial services. But think about all the other services that we use the banks for… food, water, shelter, education, and the list goes on and on.
Cryptos offer ability for the unbanked to have a bank. Of course, it’s not the bank in the traditional sense and one that we think about. But, it is a place to keep your money safe. It provides the ability to send and receive it digitally, for goods and services.
This is an amazing thing that cryptos have created and why we are so passionate about it. It is also the main reason of why we accept crypto. As a leader in this industry, it is incredibly important to provide world-class financial education for everyone. Even for the 25%, that the vast majority of businesses do not currently serve.
Because what we teach are fundamental principles, in personal and business finance and development, it can be applied anywhere in the world. Sure, there are some laws and regulations that differ, but those are easy to learn and find out, especially for the locals.
If you are unbanked and are reading this post and are using cryptos, please reach out. As you’ve discovered, we proudly accept crypto currency and would love to connect with you. There are some scholarships available, so please do inquire.
Transparency and Safety
Given that crypto offers distributed ledger, it provides great amount of transparency and safety. There is simply no way to cheat. With credit cards, there is potential to receive the goods and reverse the payments. Cryptos prevent that.
Because of the timestamp and multiple levels of accounting, it is incredibly easy to prove that the transaction took place. This creates the transaction between two parties that do not know each other easy, safe and completely transparent. This is yet another reason why we accept crypto.
Early Adopter Profitability
Finally, there is the profitability component of it. While not the most important part in the benefits section, having a profitable business is important. After all, it’s what we teach.
Being an early adopter, relatively speaking, we are at a forefront of the money revolution that is being created with cryptos.
This is the way of the future and those that get in early benefit. Just looking back to December 2016, it is easy to see that even with all the fluctuations in the market, folks that got in at that time are up in their returns. A whopping 8X! Those that got in earlier, have even better returns.
As this form of payment continues to expand, the value of the crypto currency will go up. Yes, fluctuations will remain into unforeseen future, but so are the returns.
For all these reasons, we are excited to accept cryptos.
And we are not alone!
There are quite a few well known companies that accept this form of payment. We are proud to join the ranks of the bold and progressive thinkers. Cryptos are the future of our financial system and it’s only a matter of time when it will become a world-wide form of payment accepted everywhere.
From Overstock, who was one of the first to do it, to Apple and Dell, all the way to Subway, Target and Victoria Secret.
What Crypto Currencies Do We Accept?
Unfortunately, the only gateway that we can legally install in the United States (where we are based out of) allows us to accept Bitcoin only. We have found another processing gateway that we would love to do business, as soon as they offer it in U.S. Sadly, because of our laws (see regulations above), the company provides service to over 200 countries, USA not being on the list.
We do hope that things will change and the moment, we will be proud to accept a multiplicity of coins.
If you have questions relating to crypto currencies, please make sure to let us know.
