11% of Small-Scale Entrepreneurs in the U.S. Plan to Fund their Businesses Using Crypto

A recent survey revealed that up to 11% of small business owners in the U.S. are looking to fund their businesses using cryptocurrencies in the following year.

Cryptocurrencies have taken the financial world by storm as they fast creep into the global finance scene. Adoption has seen a massive surge, with top entities seeing demands for Bitcoin and other digital assets from their clients.

As a testament to the increasing interest in cryptocurrencies, a recent survey has revealed that up to 11% of small-scale business owners plan to turn to cryptocurrencies to raise funds for their businesses in the coming year.

The survey, which was conducted by the Bank of America (BoA), sought the funding choices of small business owners in the U.S., with Cryptocurrencies presented as one of six available choices.

Other funding choices include Family/Friends, Traditional Bank Loans, Personal Credit Cards, Personal Savings, and Business Credit Cards. Amongst the respondents, 11% indicated plans to finance their businesses with cryptocurrencies. These business owners are looking to cryptocurrencies to bankroll their ventures, indicating the nascent industry’s growing adoption rate. Despite the majority – about 51% – indicating an inclination towards Business Credit Cards.

The Crypto industry is quite young, and with the pace of adoption, the scene will be welcoming more interest before long. Entrepreneurs could secure capital for their businesses through crypto loans via Aave, Compound, SALT, and Nexo, as these are major names within the crypto space that could provide loans for new businesses.

Some businesses tend to fold even before they get a chance to make a mark in their native industries due to a lack of funds. Business owners often turn to traditional loans for capital, which can be cumbersome for many entrepreneurs. Consequently, the reliance on crypto loans has grown in recent years.

Due to the steadfast Crypto Winter and the Terra debacle witnessed in May, the vulnerabilities of some of these lenders were exposed, leading to a cascade of failures within the crypto lending space. Entities such as Hodlnaut, BlockFi, and Celsius were affected

Notwithstanding the recent disturbing wave of fiascos, proponents have remained confident in the resilience of the entities left standing, contributing to a newfound level of trust. This survey demonstrates such trust.