Lifestyle On Libra was established to help individuals and small business owners navigate the complex world of cryptocurrencies and digital asset technologies. What started as a breakthrough in computer science in 2009 with the creation of Bitcoin, crypto asset technologies have evolved into a $300+ billion global economy with a presence in every market on earth.
This technology, which allows for the transfer of value (i.e. currency) to flow as freely as information does on the Internet, will revolutionize how businesses transact on a global scale. Among the myriad of benefits small business owners could see from the adoption of digital assets include:
Reduce online transaction fees
- The average credit card processing fee typically costs merchants between 1.5% and 2.9%. Price-stable cryptocurrencies, aka stablecoins like Libra, allow for merchants to cut those fees down to under 1%.
- No risk of chargebacks. Once a transaction is included on the blockchain, the underlying asset achieves absolute settlement in the merchants wallet
Expansion of addressable market-size
- 1.7 billion people remain without access to basic financial services and can’t take part in the global Internet economy. Two-thirds of these individuals have access to a mobile smartphone. Cryptocurrencies, like Libra, will serve as a way to include these unbanked individuals in the global economy.
- As the Internet plays an ever-increasingly important role in our business and personal lives, it’s vital that small business owners establish an online presence. The Internet as we know it allowed for information to be spread and shared on a global, instantaneous scale. Blockchain technology allows for value to move in much the same manner. Bitcoin was/ is the first financial instrument created using this new technology, but it most certainly will not be the last. It’s important for businesses to establish a footprint in this new and budding ecosystem.
Lean Business Models
- Eliminates financial bottlenecks in the global economy and allows for new business models that better utilize JIT production
Velocity of Money
- Money has changed form hundreds if not thousands of times during humanities existence here on earth, but the one constant has been that with every new financial innovation the velocity of money has increased. In other words, how easily one can transact with another person. Bitcoin gave us the technology to be able to transact peer-to-peer with every single person (or machine) on earth
- Innefficiencies in the legacy financial system don’t allow for microtransactions, or transactions of a hundredth or a thousandth of a penny. Blockchain technology serves as a more efficient system that allows for microfinance-focused business models
Internet of Things
- By 2025, it is projected that there will be 21.5 billion Internet-connected devices. Smart contract technology and cryptocurrencies will enable these IoT devices to self-operate on a financial level. This will enable improved efficiencies in the system and allow for governments and businesses to focus on developing services and products that really matter to consumers.
These are but a few of the many use-cases already being developed in the crypto-economy. The only thing missing is a universally-accepted, price-stable cryptocurrency for businesses to build this future on. We just might find that missing piece in Libra.