Recent research has now shown that in each month, close to 55,000 new retailers worldwide accepts to be paid through bitcoins for the goods or services they offer. Well, since the virtual currencies have quite a unique nature thus providing you with some great advantages that you can’t get from using other currencies.
Digital currency is still a new concept and untested way of payment. This is why the users should be very careful and be ready to bear the risks as much as they enjoy the benefits. With the rapidly increasing bitcoin value, more people and business will have a pretty good reason to adopt this form of payment.
It has also supported the emergence of new investments like the Bitcoin Trader software among others. Anyway, as the numbers continue to grow, below are some advantages offered by bitcoin as a way of payment.
- Almost instant payments
Tell me, who else also doesn’t like waiting for quite some time just for your payment process to be complete? Everybody, I guess. Well, if you start paying with bitcoins, you will notice it takes almost no time for the process to be complete.
If you are buying something from an online store, all you have to do is log in to your account or wallet and make the transfer. Normal transactions usually takes around 10 minutes as it will just need like 3 confirmations before guy on the other side receives his or her bitcoins.
This ability to make successful transfers in a short time makes bitcoin a better option compared to other form of currencies. You can see more advantages here https://www.investopedia.com/ask/answers/100314/what-are-advantages-paying-bitcoin.asp
- Privacy and anonymity
If you make any payments using bitcoins, it can’t be traced back to you. In short, the whole thing is anonymous.
Quite unusual with payments made through the bank, right? They can always be analyzed and traced. When it comes to bitcoins, the only thing that will be displayed after a transaction is made is the wallet address you are using.
The wallet address always hides all the details of the user making it difficult for anyone to guess who the owner is. The user’s personal details are always covered making the users to be completely anonymous hence they can be able to send and receive payments freely without being tracked or known.
Just being honest, using crypto currency as a payment method is always cheaper compared to the normal currencies. Just as an example, it will only cost you about $0.05 to broadcast your transaction on a bitcoin network.
This cost, as low as it already is, might continue to go even much lower as a lot of people continue to embrace the use of cryptocurrencies. Compare this to sending money to another country through the bank services.
This of course is usually costly and quite slow as you have to go through a long process to complete a successful transaction. This can also be seen as another advantage of using bitcoins.
This is another area where those using the normal currencies feel a bit of pain. Imagine working for a company in another country and now they want to send your payments. Of course they will have to go through the bank, right?
We have just seen that payments through the bank are always slow and costly, but who do you think bears this cost? You. Yes, you as the recipient will suffer the cost and it even gets even worse if you are paid in a foreign currency.
You will still have to go ahead and convert them to the currency your country is using. This will further deduct a few amount as you have to pay for the commissions.
Well, Abra, Align Commerce and Freemit are some of the few startup companies that want to make it cheaper and a bit faster for people to transfer funds internationally using bitcoins. This will enable people to transfer funds efficiently and cheaply.
- Quick access to your money
After selling your products or services, you can choose to be paid using bitcoins and access your payments through bitcoin network.
A lot of those making transactions in bitcoin always get their currencies in their accounts within just a day after they receive their payments in bitcoins. There is also a plan that will see debit cards for bitcoins being launched to give the users more freedom when it comes to accessing and using their finances.
Just from your phone, you can be able to still make payments and this will eliminate the need to always walk to the banks or ATM machines to do your transactions. This will also help as people will always be able to make payments anytime, any day. At least you won’t have to worry about the banks being closed during the weekends.
- No loss of data
You remember when we talked about bitcoin transactions being anonymous? Well, it is possible that you can send or receive payments without knowing who the other party is.
All you need to know is their wallet address and don’t expect anyone to be bothering you to give out your personal details. Compared to using credit cards where you will be prompted to fill a form with your private details so as to verify your credit card.
If this information is not stored and secured properly, it may fall into the wrong hands and this will be the beginning of your troubles. This only shows how bitcoin is still he safest way of making payments since it is quite difficult for one to get hacked while using the bitcoin network.
Making transactions using bitcoins has been seen as a great way of preventing fraud. This is because there is always a ledger where all the transactions are recorded and it is verifiable publicly.
This ledger can’t be edited once there is a registered entry on it. This shows that it is quite impossible to make any payment reversals or a double payment. With the normal currencies, one is always able to ask for a refund even after receiving the product from the seller and this has always opened doors for a lot of fraud cases.
But since bitcoins doesn’t have a physical nature, they are quite difficult to hack and still them. This can be a more convenient way of making bulk payments.
- No interruptions
You know how after the government can just decide to freeze your account if you are being suspected to be involved in a huge fraud case? This cannot happen to the bitcoin accounts.
Well, not the government or the banks or even any financial intermediaries can be able to interrupt your bitcoin transactions. Just as said before, the system interaction is always between two people only.
The sender and the recipient. This I believe gives the users much freedom when it comes to payments and other transactions.
- No taxes
Since there is no way your transactions can be interrupted by any third party, there is always no sales tax added to the purchased goods. This is also another great advantage of using bitcoins over the normal currencies.
There are a lot of other advantages that you might get to enjoy if you decide to start to trade using bitcoins as a way of payment.
The ones above are just a few reasons to open your eyes and see where the world is heading to. However, this is quite like a double edged sword.
This means that there is also some risk that comes with all these benefits. The question is, if you are willing to take the risks. Click here to know more about bitcoins.