Bitcoin has truly been revolutionizing things from the very moment it stepped onto the scene more than ten years ago. Within the decade or so, it has changed how many perceive finance, economy, and the very future of our species and society. Cryptocurrencies that came after and that are still coming are adopting new technologies and within the next decade, a lot will change in the way we do everyday business.
Even now, more and more vendors, merchants, businesses, companies, and individuals are starting to use bitcoin in their everyday payments. Although many are still skeptical and unsure of what the immediate future brings considering the latest circumstances in the world, one thing is more than certain. The future of trading and currencies is virtual as it is only a matter of time before traditional (fiat) currencies like the dollar, the pound, and the euro are completely replaced with bitcoin and its cousins.
Before that happens, however, there should be a stronger effort in adopting them and making people more educated on them, especially the older generations who are still stuck in the old ways of doing things. Considering the decentralized nature of cryptocurrencies and the lack of third parties and intermediaries involved, institutions and organizations like banks and governments that usually control and impose laws are not needed. This means they are often viewed as the enemy because they would change so much of the usual.
Despite this, bitcoin is here to stay and those smart and calculated enough are already paying with it and trading it. In this article, we will determine all the pros and cons of paying with bitcoin in the contemporary world. Is it good or bad, and what exactly makes it so? Make sure to read this article in its entirety, and to learn more about bitcoin in general, do check out marketbusinessnews.com.
1. Zero Chargebacks
Paying with bitcoin eliminates all kinds of the usual online fraud that general online shopping is prone to. Credit card payments as well as online payment services have been known to have issues such as late transactions, reversed charges days later, and all kinds of other misfortunes. Since the product has already been sent, the seller suffers. On the other hand, it has not yet been sent and the customer pays for it, they are left with a big problem in the form of money being taken out of the account but the product not being paid for. Such circumstances are very annoying and they ruin the shopping experience for everyone involved.
Even the most secured companies and online stores are prone to this since many different aspects are involved. With bitcoin payments, only the seller and the buyer are involved. There are no intermediaries, no disallowed payments, or chargebacks. You pay from your digital wallet to the other person’s wallet and that is all. Every transaction is one-way and there is no possibility of losing money. This is especially easy and convenient in real-life situations, in shops whose owners accept bitcoin as a valid payment option.
2. Minimal Transaction Fees
Everyone knows that credit cards and online payment services are killers when it comes to fees and additional costs. Depending on the circumstances, you could have to pay as much as 30% more in transactions and fees. PayPal for example charges 3% to 4% for every transaction, which is outright stealing. This adds up between individuals and before you know it you have given them a small fortune.
Bitcoin fees are extremely low, and they determine the speed at which the transaction is complete and how fast you receive the money. They are paid to computers that host the network, that is, the miners who use their machines to solve complicated problems that are at the heart of obtaining cryptocurrency. While fees exist, everything is so much simpler and easier, and best of all, you do not have to look over your shoulder for a member of an institution who wants a part of your transaction.
3. Anonymity is a Guarantee
Arguably the most useful feature of using bitcoin and especially paying with it is the anonymity it brings along. Those among you who care about your private information and data in this age of technology and mass trade of all sorts of information should appreciate this the most. If you are not convinced, remember that those dealing in illegal services are largely using bitcoin for their deeds. This means that it is also more than viable for regular payments. The businesses of the world who look past this trait of bitcoin that makes it appear shady or illegal have benefited a lot, and so have the customers who paid in it.
With regular currencies and through credit cards and online payment services, the institutions and service providers know who and when made every transaction and can trace it back to your name and address. Just remember how much you give in order to open a simple bank account. In the bitcoin world, every wallet has a certain ID code that is not associated with any other data. As long as you can add your bitcoins to your shopping cart at an online store, or come to a solution with a real-life merchant in the store, you do not have to worry about anyone knowing what and when you have bought.
4. Volatile Market and Uncertainty
Since the early days of bitcoin and cryptocurrency, it was evident that the leading cause for concern for anyone dealing with it would be the highly volatile market. The degree of uncertainty is unreal with bitcoin, as it rises and falls in worth almost by the hour. There have been many overnight millionaires already, as well as those who could not react quickly enough and were stuck with a lot of bitcoins when it was low, only to sell it just before it rose again. The volatility of cryptocurrencies is already infamous, and it will probably always stay like that. However, considering that most of them have kept a relatively stable course throughout the incredibly bad 2020, the hopes are high for the next few years when another huge jump in worth is expected in which 1 BTC could be worth more than $100,000.
5. Skepticism and Cyber Underworld
As mentioned, the reason why bitcoin is often shunned is that illegal activity is often financed with it, as well as other cryptocurrencies. Since anonymity is high, fees are low, and fact that the transactions are irreversible, many who deal with illegal things pay and receive payments in bitcoin. This is the leading cause of it not achieving its potential yet. Many hope that this will soon change since it has to if bitcoin is to be what it really can.