Cryptocurrency Payment Method Pros & Cons
Nowadays, everything is becoming more digitized. From online shopping, learning up to finance. Especially the use of paper as a form of everyday transaction. Probably you have heard about cryptocurrency and have a different view about it. Mainly, things like its viability.
The question most users and non-users have in mind is, Is it safe to accept cryptocurrency as a form of transaction on your website? The two most common steps to allow cryptocurrency as a payment method are:
- Installing WordPress Plugin
- Add Note To Accept Bitcoins
These two methods are the most effective and not time-consuming. What people want to know is the positive and negative impacts of the use of cryptocurrencies. This guide will be able to give more in-depth information about the pros and cons of the use of digitized money.
Cryptocurrency Payment Method Benefits Pros
Little To No Transaction Fees
The transaction fee of using a credit/debit card is more costly as compared to trading Cryptocurrencies. For instance, Bitcoin charges a flat rate of 22 cents per transaction. Note that this rate changes often, but it is still lower as compared to other forms of payments.
A business or person only needs to pay a small flat rate as compared to other entities which require a percentage of the entire purchase price. Not to forget, the high fees charged and also chargebacks by credit card institutions are the primary reasons why people prefer transacting with cryptocurrency.
Third Party Association
Reliable and renown sites like coinbase.com have joined the war against fraudulent activities concerning cryptocurrencies. What they do is to help mere to process cryptocurrency transactions. A person can create a wallet and sell currency on this site with ease and transparency. The site also allows people to turn real money into digital currency.
When it comes to change of a system, especially money, it takes a while for people to accept it. More investors and business owners have adapted to this currency system form of payment method. The significant cryptocurrencies currently in use by most business persons are bitcoin and altcoins. The more it's used, the more mainstream it becomes. This is an excellent way to increase the number of customers on a website thus making it a unique way to add it as a payment method.
This can be both a positive and negative aspect of digital money. Someone using cryptocurrency will not be able to reverse a transaction. It can lead to losing for fraud companies and people using this form of payment. The positive aspect of an irreversible operation is when dealing with demanding clients. If the transaction has gone through, they have to wait for the services to be amended or purchase a different function.
Cryptocurrency Payment Method Benefits Cons
Sense Of Skepticism
Still, in the point of skepticism, more people are reluctant to use it. The many issues of frauds, lack of transparency and loss of money makes it harder for people to build trust on such a system.
Most cryptocurrencies are based on a sharing known as peer to peer which has no central policy. The main problem with this system is there is no evidence if a transaction has gone wrong. One will lose all the money and cannot provide sufficient evidence to be able to recover the money.
Some people and companies use the digital money to perform fraud activities. Drug traffickers and gangs have been associated with frequent use of cryptocurrencies because there is no paperwork involved. There is no way to arrest them because no paper trail is left. This mostly gets hard for government agencies and tax institutions to recover money owed to them. Additionally, the news of tax invasion and drug dealers prefer to use this type of transaction, makes more people more skeptical of using it.
Cash Flow Instability
Small Businesses complain about the stability of cash flows. Some have even attested to low cash flows that have resulted in business failure.
To conclude, running a business is never easy. When it comes to using the right software to allow seamless operation of the website, dedication and money are needed. Most things being digitized, it is inevitable to run a site using digital means. The use of cryptocurrency as a payment method, will generate more services and increase customer rate. Every significant step there always has to be some negative aspects in it.
In this case, the positive elements of cryptocurrency in a business overshadow the negative ones. It is good to see how things fan out because there is a broad market for people to learn still and use cryptocurrency.