Cryptocurrency is disrupting the way financial transactions work. People and organizations around the globe are quickly adapting to digital currency transactions. According to research, the cryptocurrency market will be worth $1.40 billion by 2024.
Amongst different types of cryptocurrencies, bitcoin is emerging as the most favorable digital currency. The application of bitcoins is not just restricted to financial transactions but for investment purposes as well.
And these applications are the reasons for using bitcoins in network marketing. Here we elaborate on the role of bitcoins in network marketing, also known as multi-level marketing (MLM).
Why Bitcoins in Network Marketing?
Transacting in cryptocurrency is one of the most secure and private methods of accomplishing financial transactions. Bitcoin is an encrypted, decentralized currency that can be shared amongst network participants. Therefore, it can be used in network marketing without any middlemen. This eliminates any possibility of a financial fraud.
The transactions in this peer-to-peer network are registered on a public ledger, known as the blockchain. And since personal details are not recorded in the blockchain, the transactions cannot be traced, thereby maintaining the privacy of the participants.
Moreover, Bitcoin serves as an investment tool. The payment recipients can either exchange bitcoins for cash or keep them in their digital wallets. In the future, the value of bitcoins may rise, resulting in accumulation of lucrative gains on your investment.
Accepting Bitcoin as Currency in Network Marketing
Bitcoin is emerging as a preferred mode of payment. The MLM companies are willing to pay their employees, vendors, and members using bitcoins. Moreover, customers can also transact using bitcoins. The downline structure in an MLM company can be complicated. The same is applicable for payments as well. To simplify the task of organizational management, you can use MLM software.
Whether its employee management, performance analytics, marketing, or sales operations; MLM software is capable of automating, synchronizing, and managing company operations. When it comes to financial transactions, MLM software incorporates most of the payment methods, including digital payments using bitcoins.
Bitcoin Network Marketing Model
Cryptocurrency network marketing has evolved drastically, and nowadays, there are various companies whose business operations revolve around bitcoins. Some of them offer nothing but a business opportunity, and some of them offer great products and services besides a business opportunity.
Investing in bitcoins is the most simplified way of associating with a network marketing company. You will invest a specified amount – as stated by the company – to buy bitcoins. Along with this, you will get commissions when you bring in new members to the company.
There are network marketing companies that offer products and services at a cost. Moreover, they offer an opportunity to develop your downline to earn affiliate commissions. As the downline grows, your income rises exponentially.
Bitcoin mining software, bitcoin trading software, and educational materials are the products offered by multilevel marketing companies. You can use these tools and resources to enhance the value of your investment by mining or trading bitcoins. You can also rope in new members to earn commissions.
The drawback of Bitcoins in Network Marketing
There are certain drawbacks of using bitcoins, not only in network marketing but in other businesses as well. These are:
- It is extremely volatile. If you look from an investment point of view, there are equal probabilities of losing or gaining on your investment.
- Bitcoins usage is restricted or controlled in most of the countries such as India, China, USA, and others. Before transacting in bitcoins, check out government rules and regulations.
- Most of the network marketing companies are just fraud schemes. The company owners might run away when enough money is accumulated, they may utilize your system’s resources to mine bitcoins, or the products and services are just a hoax; there are endless possibilities.
The Bottom Line
Network marketing model is the reason behind some of the most successful as well as now-defunct companies in the world. Use of bitcoins in network marketing is an intelligent move. The future seems bright if conditions – such as rules & regulations, cryptocurrency acceptability, company credibility, volatility, and IT infrastructure – are in favor of using cryptocurrency in financial transactions.