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Bitcoin is soon becoming an acceptable means of making transactions, contrary to certain projections.
Perhaps this seems far-fetched, but Bitcoin has a number of advantages for both customers and retailers. Bitcoin replacing credit cards is only a matter of time, if you know anything about the creative destruction inherent in capitalist societies.
Here are 5 reasons why bitcoin will replace credit cards-
Security
The disadvantage of relying on several parties, such as credit card payments, is that it raises the chances of a malicious attack. You authorize an e-commerce site to make money from your account when you input your credit card information.
Bitcoin’s secure network can also assist business owners. Chargeback fraud is prevented by the irreversible nature of Bitcoin payments, which stops customers from receiving products and then canceling the payment afterward. Businesses will not be responsible for protecting sensitive credit card data, obviating the need for costly payment card industry compliance measures.
Speed
When comparing Bitcoin to credit cards, opponents frequently point out the differences in processing times between the two systems. Visa, for example, processes 24,000 transactions per second (TPS), compared to five to seven TPS for Bitcoin.
However, such comparisons leave out a lot of important information. When you swipe your credit card, the money isn’t automatically deposited in the merchant’s account. Credit card companies, on the other hand, take several days to authorize and clear payment.
Bitcoin is intended to function as a stand-alone bank and payment network. If you’re paying using bitcoin, you merely need to move money from one blockchain address to another. Unlike a credit card payment, this technique takes 10 minutes or less and ensures transaction completion.
Less Transaction Fees
Payment processing costs, which can be as high as 3% of the original purchase, are charged by credit card companies. Because some merchants have limited profit margins, they are frequently forced to pass these costs on to customers.
Both businesses and customers gain from low transaction fees. Charges would not eat into profit margins for business owners, and customers would be able to pay for things without incurring additional expenditures. If that sounds like a win-win situation, you’re starting to understand Bitcoin’s genuine worth.
Almost no Paperwork
Before providing a card, each bank will require you to finish a lengthy registration process. For merchants wishing to set up point-of-sale systems with a credit card provider, the process is similar, if not lengthier.
Bitcoin can help to boost business by allowing unbanked people to pay for goods using a mobile device that is linked to the internet. It may also make it easier for small firms to establish payment channels without having to deal with the normal paperwork.
Privacy
Bitcoin transactions are pseudonymous by design: the blockchain only records the parties’ public addresses and the amount traded.
By checking up a transaction on the blockchain, no one can tell who you are or what you paid for.
When you pay with bitcoin, businesses do not store your information, so you can shop with confidence.
They can’t sell your information to advertisers, so you won’t see any annoying advertising in your browser.
Conclusion-
Customers may already pay in bitcoin at major corporations like online retailer Overstock.com and cellphone carrier AT&T. the number of businesses that take bitcoin is expanding by the day.
This trend demonstrates that bitcoin isn’t just worthless virtual money, as some opponents allege, but it also reflects something more fundamental: bitcoin’s ability to replace older payment processing systems such as Visa and MasterCard.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
