When we speak of free trade we refer to any commercial activity that is absent from obstacles that impede the access of economic agents to commercial activity (people, industries, businesses, governments, NGOs, among others), the main obstacles being the intervention of governments and the formation of interest groups such as unions, employers, or unions, who establish rigid regulations to hinder access to commercial services of economic agents. While it is true that we are in a chaotic world, where in some areas regulations are increasingly necessary, cryptocurrencies present a legal option in monetary financial exchange within commercial freedom.
Commercial freedom does not refer to evasion of responsibilities or illegality, quite the contrary, but within the regulations that protect the ecosystem where the commercial activity is developed, cryptocurrencies offer a real and safe solution, which opens a door, especially between commercial relationships, which thanks to the current financial model are not possible.
One of the main characteristics of cryptocurrencies is their decentralization. Since they are not coins issued by a central bank, they can not be controlled by any government. But this does not mean that you do not have control. Blockchain technology (which is the basis of the cryptocurrency system) has been in use for 10 years, and consists of a database, an accounting book, digital, online, public, where any transaction is monitored, tracked and, above all, confirmed by millions of nodes (supercomputers) through complex encrypted algorithms, from the moment the transaction is sent to completion until it is completed, so altering a transaction is not possible without the network knowing and disclosing it, making This system is the safest and most transparent system ever developed.
So that you can understand a little better we will see four examples, but before we clarify a key term, and it is Currency FIAT: It is an official currency issued by a central bank, such as the dollar, the euro, the peso, etc.
- Joan wants to buy George a car. To be able to buy the car they must know each other (George must sign the papers and deliver the vehicle through the corresponding legal entities, such as notaries, but in this process intermediaries are avoided and the cost that this entails). The vehicle has a value in FIAT currency ($ 1000), but Joan does not have access to banking services in the same FIAT currency that George has. Joan has cryptocurrencies, Georges accepts the payment with cryptocurrencies (it is assumed that by the time of the transaction George must have a wallet where are going to transfer Joan's cryptocurrencies to him, which is very easy to do). The transaction is made as follows: On the day of the signature of the document (prior agreement), the transaction should be carried out in front of a third party serving as watchdog (who confirms the truth above all in the amount in cryptocurrencies). The calculation in cryptocurrencies of the FIAT currency value it must be done at the moment of the sign (there are many online calculators, but sometimes a simple rule of three works when the current price data is taken, in coinmarketcap.com they can have references of the value of cryptocurrencies in real-time, this is an example: if you are going to pay a 12 USD $ account with Bitcoin (BTC), divide those 12 between the price of bitcoin ... 12/3680, gives a total of 0.0032608 BTC). The transfer of funds is made from Joan's wallet to George's wallet, the transaction is confirmed (the speed depends on the Blockchain of the cryptocurrency chosen for the transaction, there are some immediate ones like Dash and Litecoin and there are others that are confirmed within a few minutes as Bitcoin). When the funds are in the George´s wallet, the purchase sale document is signed, which will tell the value of the vehicle in FIAT currency ($ 1000) and that's it. Joan takes her vehicle and George his cryptocurrencies. The amounts in taxes at the end are paid for the amount of the FIAT currency of the sale ($ 1000) and in FIAT currency.
- Now, what if Joan and George do not know each other? Both Joan and George need to have digital wallets. Let's take an example at a larger scale: Louis has an online store, but Louis does not have access to the web applications he needs to collect his sales in FIAT currency or he only has access to one FIAT currency and Louis wants to internationalize. Louis only needs to place in his payment options the cryptocurrencies that he accepts, he places at the end of the process of the online store (usually called ckeck out) the address of his wallet and voila, his clients can pay him with cryptocurrencies. Louis needs an application for his web (there are many) to calculate the equivalent of the amount in FIAT currency to cryptocurrencies in that check out, and his invoices will be issued in the FIAT currency in which his Online store operates. The Blockchain allows to track the funds from the origin to the destination, and it is impossible to modify without the network being aware of it. So the transaction it's safe.
- Within the previous experience we can talk about the jobs at a distance. This is an example: John is a programmer, works online. John only has access to his local FIAT currency and does not have international bank accounts. John is contacted by a client. After John explains his work and the client is satisfied with the proposal, it is time to talk about payment. John's client offers him payment in dollars but John does not have a dollar account. John proposes payment in a certain cryptocurrency and the client accepts. The arrangement was 50% early to start the work and 50% later to deliver. The customer accepts. The transaction could be done in this way: The amount of those 50% of work will vary in cryptocurrency, but not in the chosen FIAT currency that was the US Dollar, so they are calculated according to the time of payment of each half, the previous division works for any local currency . The client notifies of the payment with a link of the transaction to John, John confirms the crypto in his wallet and that´s it. The payment is made instantly. If John requested the payment in his local currency surely the client would look for someone else, since the process of bank transfers and the change of currencies is expensive and late, even John would not receive the totality of the funds since the commission for the change of FIAT currency would be paid by John within what was agreed, so that he would receive up to 20% less per exchange commission.
- One last example: Edward wants to buy an apartment, but it is not applicable for real estate loans. Edward invested in Cryptocurrencies and has the amount in crypto of the amount of the department in FIAT currency. Edward goes to a real estate company and works with cryptocurrencies (more and more people own real estate that bet on this method). The process is very simple: after the real estate broker or the owner of the property has all the legal papers in order, and the sale price has been negotiated, a signature with live payment is made, just like the one of Joan's car but this one is with intermediary, where at the moment of signing the calculation of the equivalent of the value of the property in FIAT currency to the chosen cryptocurrency is made. The funds from Edward's wallet are sent to the wallet of the real estate agent or directly to the owner of the property, the purchase sale document is signed in front of the authorities, with the sales amount expressed in FIAT currency and that´s it, Edward has his department.
In any of the four cases, the seller or person receiving the cryptocurrencies may keep them, expecting to increase their value or change them to FIAT currency at the same moment of receiving the payment through an Exchange. The cryptocurrencies offer real solutions for free trade, due to its global nature. International standards have not ruled against the nature of cryptocurrencies, but against bad practices of specific companies, so our main recommendation is: Save your cryptocurrencies in wallets services that have backup and guarantee, second, when making transactions verify the commercial history of the person or trade, and third, enjoy the freedom that this payment system allows you, without bureaucracy (beyond the acquisition of crypto through an Exchange) without intermediaries, without high commissions (believe us , the commissions are much lower than that of the banks).
As you can see one of the biggest advantages of cryptocurrencies is for those who do not have access to bank accounts, financial services such as credit or credit cards, and need to make payments for products and services. There is a growing number of companies and establishments adding to this payment modality as it opens both national and international trade, without the barriers that financial services present today. We firmly believe in the global and inclusive nature of cryptocurrencies and we know with certainty that every day people will be integrated into this payment method that resolves not only forms of exchange, but also lives.
Cryptobuyer has a solution for businesses: Cryptobuyer Pay, with your business can receive payments in cryptocurrencies (without annoying calculations, since the system makes the calculation automatically and reliably) and settle them in FIAT currency automatically. If you want more information contact us.