What Makes Bitcoin Such a Popular Payment Provider?
Bitcoin has been making headlines nearly every week this year. It started with the digital currency’s bullish run in January and February 2021 that culminated in an all-time high of $60,000. It’s also been trending on Twitter, with celebrities and billionaires like Elon Musk endorsing it constantly.
So, what’s the deal about Bitcoin? Why is everyone suddenly accepting the cryptocurrency for payments?
Bitcoin was founded on the principle of providing anonymous transactions. When making a payment, you receive an address to send funds to but not the recipient’s name or addresses. In other words, sensitive data isn’t exchanged during a crypto transaction.
To be clear, Bitcoin isn’t completely anonymous. It provides pseudonymity. It hides your basic identification information. But someone could still trace transactions back to your IP address. Additionally, some merchants ask for KYC identification and this lowers anonymity.
All the same, transactions made through Bitcoin provide more anonymity than card transactions. This is particularly true when not transacting through a merchant site. You can use a VPN and a tool to anonymize transactions for added privacy.
The main reason Bitcoin has been hitting headlines in 2021 is due to its tremendous growth. It has been setting new records monthly. And with this growth, the cryptocurrency has been attracting attention left, right and center.
Unlike eight years ago, you can now buy coffee, pay school fees or deposit money to a casino using Bitcoin. The best Bitcoin slots casinos, and you can find some at online-gambling.com, even give you a bonus for choosing crypto as your banking option.
Besides increased support, Bitcoin is also a great investment choice. Sure, it’s a highly volatile asset. But it’s also highly rewarding to those who purchase and hold their coins for weeks or months.
The most unique Bitcoin feature is its decentralization. It’s not printed like the US dollars or Euros. Instead, it’s mined from the digital ledger of records known as the Blockchain. Unlike fiat currencies, Bitcoin is limited—the maximum number of BTC that can be mined is 21 million.
The decentralized nature of Bitcoin has numerous benefits. One of the major ones is that no single person owns the cryptocurrency. As such, no one can hack the Blockchain and collapse the entire network.
In light of that information, the blockchain can be used to store data sans interference. Once you add information to the decentralized ledger, no one can change it. However, the information can be verified as true if the need arises.
Fast, Low-Cost Transactions
Bitcoin is a fast payment method. On average, a transaction takes a couple of minutes to complete. It also costs less than 1% of your amount. You could argue e-wallets like PayPal process payments instantly.
But keep in mind Bitcoin isn’t the only cryptocurrency out there. Alternative coins like Ethereum, Litecoin, Cardano and Bitcoin Cash were created to improve on the inadequacies of Bitcoin.
Many merchants that accept Bitcoin also support altcoins. As such, if you want quicker, cheaper payments, choose altcoins over Bitcoin. That said, the beauty of using crypto for payments is that transaction speeds and fees remain constant for both local and international transactions.
You’re not charged more for sending a payment from Australia to the US or vice versa. And you don’t need to wait for more time to receive your money. These are popular challenges among people who use direct bank transfers.
There are many misconceptions regarding the security of Bitcoin. Many people associate hacks made on crypto exchanges and wallets as a sign of the digital currency’s insecurity. That’s simply not true.
Thanks to Blockchain technology, crypto transactions are immutable—they can’t be changed. You can confirm the payment was made. But you can’t delete the records with an aim of defrauding someone.
To top it off, many Bitcoin merchants use standard security tools like SSL encryption to secure their websites. Additionally, they allow you to secure your account and to use additional security techniques like Two-Factor Authentication to keep your account secure.
The days when you had to travel with bags full of cash are over. These days, most people carry their credit/debit cards for convenient payments. And guess what? You can store Bitcoin on a credit card and carry it wherever you travel.
Bitcoin cards work like regular cards. You can use them at multiple ATM machines around the world or at physical retail stores. If you’re not a fan of cards, though, you can also use an app, or a hardware device to carry your crypto.
The point is, your crypto wealth is easily accessible no matter where you live. In many cases, you also don’t need to ask for authorization from anyone to cash out your funds. All you need is to send them to a reliable exchange and convert them to cash.
Are chargebacks good or bad for business? For many entrepreneurs, chargebacks are a source of losses. Sure, they were designed to protect customers from substandard products and frauds. But a lot of people misuse the service.
They purchase products and receive them in the expected quality. But still, they ask for chargebacks to keep both the money and the product. The result is a lot of losses for businesses.
Bitcoin eliminates the problem of chargebacks. Once someone sends you funds, they can’t cancel the payment. This eliminates all the problems caused by chargebacks. Of course, the lack of reversals means making an error in amount or address can be costly for the sender.
Bitcoin is your Property
Ask any legal expert. No one really owns fiat currencies besides governments. If you deposit cash in a bank, it’s invested by the bank or loaned out to someone else. If you want to make a withdrawal, the bank gives you an equivalent of the money.
With Bitcoin, you could own the same amount of crypto for years. You have the keys used to process transactions. If you choose not to transact the money, you’re allowed to keep it. If you decide to do business, you can send the fund to anyone without the interference of a bank.