While many people may now know about bitcoins, awareness in regard to them being a legitimate means of payment is still low. Cryptocurrencies in general are viewed with a certain degree of suspicion because there is not adequate information available online. However, with the fluctuating global economy, many people have now found that there are in fact, many benefits to using Bitcoin as a payment system.
In this article we will aim to discuss the advantages of using bitcoins in detail. Niche aspects like buying/ selling options will be discussed, as well as escrow services and potential shortfalls will also be looked at.
In its very essence, Bitcoin offers us with many advantages over traditional banks because it allows us to send and receive payments all across the globe, without us having to worry about conversion rates. In addition to this, bitcoins can be transferred quite easily, and a standard transaction takes just 10 minutes to complete. Also, when looking at it from a security standpoint we can see that bitcoins are secure and transactions cannot be reversed once made.
At this point it would also be useful to mention that Bitcoins and its technologies are always evolving. There are improvements being made constantly in regards to security and usage, so as to increase the appeal of cryptocurrencies.
What’s So Special About Using Bitcoin?
One of the primary advantages of using BTC is the fact that merchants do not have to pay any processing fees to carry out transactions, instead all of these additional charges are compensated for by the sender. In addition to this, the fees that are levied are extremely small when compared to traditional payment networks.
Global Transactional Power:
When being used to make international purchases, Bitcoins have the ability to be transferred without any limitations to any place within the globe. However, as mentioned earlier, made transactions cannot be reversed, and thus users have to be extremely careful once they decide to make a transfer.
Since this currency is slowly gaining traction in the international market, it will soon become a valid means of payment for almost all regular items that we normally make use of. Not only that, when using BTC there are “no subscription or monthly fees” involved (unlike traditional bank accounts and payment processing networks).
Large Transactional Capabilities:
Another highly beneficial aspect of using cryptocurrencies is the fact that large payments can be made with ease and without any monetary caps on the size of the payment. This is unique and is quite different from regular banks which are known to charge large payment processing fees for bigger amounts.
What Benefits Do Buyers Get?
While one may think that bitcoins favors merchants more heavily, there are quite a few incentives for buyers to use BTC as well. These include:
Fast Payment Confirmation:
Transactions can be completed in under 10 minutes, irrespective of the fact whether they are national or international transfers. Additionally, storage of coins is quite straightforward and the transaction fee that is levied usually translates to just a few pennies (platforms like paypal can charge upto $50 on a $1000 transaction)
Easy To Handle:
Buyers do not have to worry about storing their bitcoin as there are many secure wallets that can be made use of. These wallets can be used on any electronic device that use platforms such as android, apple, PC.
Relationship With Escrow Services
Market research has shown us that Escrow services have resulted in increased Bitcoin safety. This is because, escrow services are more often than not ‘third party trusted’ and make use of multi-signature 2-of-3 wallets. In addition to this, the buyer and seller are each given a key to the wallet (along with a neutral third party). In case of a dispute, the neutral member can weigh his options, and then based upon a researched decision, he/she can choose to return the funds to either the buyer or seller.
Relationship Of BTC’s With The Global Economy
Owing to its ‘decentralized nature’, Bitcoins have the potential to completely revolutionize the way commerce is carried out in each and every part of the globe. As mentioned earlier, bitcoins make transactions easy and feature no heavy costs that can otherwise be quite off putting for many customers. Not only that, It also has the potential to be used in conjunction with ‘multi-signature’ escrow services, thereby reducing issues related to fraud and dishonesty.
Also, BTC ensures extreme privacy due to the inherent nature of ‘blockchain technology’. Similarly, there are records that are maintained with each step of the way so as to ensure that the currency is adequately protected from issues of theft.
We should also recognize the fact that Bitcoin is an emerging technology and thus is bound to have certain drawbacks and restrictions. Some of them include:
In certain cases of escrow fraud, there might be chance of users losing their investment completely. Additionally, the ‘block size limitation’ is not yet determined and can thus cause certain delays in transactions during periods of high demand/usage.
Since governments, financial authorities all across the globe still don't understand this platform well, there are potential issues of tax payments that one might have to deal with.
Still Up And Coming:
Bitcoin is still in its nascent stages and is volatile in its pricing. Also, it is still not accepted by most merchants universally.
Top Bitcoin Payment System Benefits Conclusion
While Bitcoin may be one of the hottest ‘emerging technologies’ in the market today, it still has a potential to improve and become better. As mentioned earlier, it provides tangible advantages for both buyers and merchants, and is able to minimize costs such as transaction fees, conversion losses etc. Therefore, if things keep moving in the direction that they currently are, Bitcoin based payment systems may replace cash transactions and instead serve as ‘new age digital currency’.