Top 9 Reasons to Use Cryptocurrency
Cryptocurrency is a new-age type of digital money evolved to meet the demand for quicker decentralized payments. Offering a new way to make cashless transactions, it became a main credit cards’ competitor. But will this “money of future” manage to fully push away credit cards? In this article, we are going to take a detailed look at the issue.
Everyone agrees the introduction of plastic cards has come as a great relief. They allow to buy most things in a simpler and tidier way without the need to deal with paper money. If it is so and all are happy with credit cards, then why to use cryptocurrencies? What are their advantages? These are logical questions that arise. And we are here to answer them.
1. Crypto payment processing fees are much lower
Merchants using credit cards like MasterCard/VISA feel a great pressure of payment processing fees. To have a clearer understanding, let’s look at some figures. So, only in 2014 businessmen in the USA spent over $61 billion for paying fees. The sum is really impressive!
But the worse is that MasterCard and VISA are not likely to cut the payment charges. And though the latest credit card fee increase caused much discontent, the temptation to make extra money outweighs.
In the contrast, paying with crypto decreases fees to ridiculous amounts. Thus, most crypto payment platforms charge no more than 1% for a merchant. A buyer doesn’t pay anything.
2. Cryptocurrency reduces the risk of fraud and theft
Firstly, to make a credit card transaction, a merchant should see your card information, acquiring bank, card service and issuer. Though the whole process takes only a few quick seconds, your account data is blabbed to, at least, 4 different instances. It means that each of them has a good chance to take your information. Fraud, card skimmers, number theft can happen and cause misuse of user’s funds.
To use cryptocurrency is far simpler and securer. Cryptocurrency transactions are made instantly and directly from a buyer to a merchant. They don’t go somewhere in between. Private information such as amount to be sent, sender’s and receiver’s address are not disclosed to third parties. The only thing to be transferred are funds from point A to point B. Don’t you agree now that to use cryptocurrency is much safer?
3. No more chargebacks
Credit cards are usually associated with numerous chargebacks. They are the main reason why merchants lose billions every year. Reversed transactions give a big headache to business owners.
In case with cryptocurrency payments, there are no chargebacks. Blockchain transactions which have already been included in a block, can’t be reversed. In such a way, crypto saves your time and money.
4. No waiting period or difficult signup process
To create a bank account and get a credit card, you should do much paperwork and spend much time in a bank. So, a day or some will pass before you will be able to make a payment.
As for crypto, to become a new user, you usually need to download an application or pass a quick registration with your email and name.
5. Crypto can’t be blocked or easily confiscated
Unlike credit cards, cryptocurrency payments are never blocked and balances are never seized. Besides, payments are always made without restrictions.
6. Crypto doesn’t change fees and terms arbitrarily
7. Crypto transactions are Peer-to-Peer
A P2P network is blockchain’s philosophy. On such a network, everyone uses and forms the network at the same time. Peers (computer systems on the network) are equal and usually called “nodes”.
P2P communities underlying crypto transactions differ from credit cards’ client-server models. They have no central point of storage such as servers. Thus, all information in P2P network is continuously recorded and interchanged between all the participants. In addition, the more users on the network, the better it works. Whereas centralized server model slows down with great number of users.
A P2P network with no centralized point makes crypto transactions less exposed to hacker attacks or loss of funds. And that is another huge gift of cryptocurrency.
8. Cryptocurrency doesn’t share purchase data with admen
Credit cards often share client purchase information with advertisers, thus violating the right to privacy. That kind of abuse scares off many users who start seeking other payment methods. As for cryptocurrency, it has no direct connection to clients’ personal data. Besides, some coins have taken privacy levels to the next level using such technologies like MimbleWimble. Thus, when using cryptocurrency, the consumer privacy is much higher.
9. Crypto doesn’t have many identity requirements
Payment cards are closely connected to identity data and documentation. That similarity often causes many problems with transactions. The situation when some documents are unavailable or misplaced can result in business account/fund inaccessibility or even worse. As opposite to credit cards, crypto can be used by anyone, at anytime and anywhere.
We hope you liked the article. Now you have a better understanding of cryptocurrency advantages over credit cards. Still, if you have something to add on the issue, please share your thoughts with us.
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