Will Cryptocurrency Still Be Relevant in 2025?

While 2021 showed rising trends for cryptocurrency, the many events of 2022 led to a downward trend — particularly in the year’s second half. With many businesses interested in expanding into cryptocurrency by either accepting it for transactions or simply looking to invest, cryptocurrency and its volatility are a hot topic. The question is, will cryptocurrency still be relevant in 2025?

Yes, cryptocurrency will be relevant in 2025. With such a large market and a prediction that cryptocurrency markets will rise, it would be concerning if cryptocurrency became irrelevant — despite the bitcoin price losing almost 70% from its all-time high set in late 2021.

How Will Small Businesses Be Affected by Cryptocurrency?

Ultimately, small businesses must decide whether or not to begin accepting cryptocurrencies in their transactions. According to data from Skynova, 32% of U.S. small businesses currently accept crypto. While there are benefits – such as:

• Lower transaction fees
• Merchant protection reduces the risk of fraudulent chargebacks
• Increased sales
• Convenience for customers

There are also risks associated with crypto transactions. 2025 may be the year that regulations are clarified for businesses and security is improved. Still, the decisions remain with the business owner. Carefully consider the benefits and consequences, as one small business may benefit more from expanding to crypto transactions than another simply based on its target audience and product.

Are Small Businesses Being Misled?

When considering cryptocurrency and its effect on your business, you should first consider the risk. There is no definitive answer, only predictions from the mouths of experts. It’s up to you to do your own due diligence on your business’s specific crypto and financial situation before making decisions (although your accounting department should be able to help). 

With experts claiming huge leaps in crypto prices between now and 2025 and others claiming we’re headed into a “crypto winter” due to an impending recession, it remains to be seen if crypto will be a lucrative option in the near future. 

Cryptocurrency and Taxes in 2025 

The Biden administration has proposed a few changes to how cryptocurrencies are managed and taxes that will take effect after December 31st, 2022. These will include new reporting rules for digital assets, including most cryptocurrencies and potentially some non-fungible tokens (NFTs). 

To better understand what is considered a digital asset and how it may affect your taxes, consult with your accountant or tax advisor.

What Type of Preparation Can I Do Now to Prepare for 2025?

One key element of a successful business is being able to view trends and financial changes before they occur. The best preparation you can do now is to prepare for 2025 and the possible changes crypto transactions may incur on your business or customer base.

Monitor trends, monitor the market, and inform your accounting team of your goals or intentions for the future – whether that includes or does not include the acceptance of cryptocurrencies.

Lastly, ensure that your accounting process is running smoothly before making decisions – virtual finance departments are typically able to make adjustments in managing your books quicker than locally hired or in-house accountants.