One of the foundational principles of the crypto space is seamless and secure cross-border asset transfer. Therefore, apart from being a reliable store of value, Bitcoin (BTC) also shows great potential in facilitating online payment transactions.
Its top-notch security, privacy, and decentralization make it a reliable payment option for both businesses and individuals. This article covers important details on why Bitcoin is a reliable alternative to Credit card payments.
Before we get to the point, let’s find out the current global perspective of the cryptocurrency and blockchain ecosystem.
Global Crypto Trends
With the world currently a global village, and businesses having clients across the globe, the need for top-notch payment transaction methods cannot be over-emphasized. Many businesses and individuals have to rely on credit and debit cards to make payment transactions. This method of payment, however, comes with a lot of hassles.
Therefore, the ‘King Crypto’ might close this gap. For example, top firms like Overstock now accept Bitcoin. This is quite impressive and also a clear indicator of the growing adoption of the entire space.
This also goes to show that, Bitcoin (BTC) isn’t some “Gambling device” as Warren Buffet calls it. Instead, it has the potential to function as a reliable and secure payment processor. Much like the conventional MasterCard, Verve, and VISA credit cards. Beyond, services offered by conventional payment processors. Some of these features include faster transaction time, security, privacy, etc. It is, therefore, not farfetched to say that Bitcoin will likely replace credit cards in the near future.
Comparing Credit Cards and Bitcoin
To further provide more insights into the possibility of Bitcoin completely replacing credit cards, let’s do a brief overview of both payment processors.
- Credit Cards: Imagine having to pay for an item online using your credit card, the payment has to go through several third-party parties before it gets to the merchant bank account. This entire process takes time and is far from cost-effective as individual third-party platforms have to charge a form of a service fee.
- Bitcoin: Bitcoin (BTC) payments require no third-party agents. Funds are directly transferred from the buyer’s wallet and deposited into the merchant’s wallet. It ensures a transaction that is both fast and cost-efficient.
Let’s find out some more features that make Bitcoin the go-to payment processing solution.
Bitcoin boasts of an estimated 5 – 7 transactions per second (TPS). However, the introduction of L-2 solutions like Lightning Network has further made BTC transaction time even shorter. Nowadays, the Lightning Network can make 1000 times as VISA does.
— Bitcoin Magazine (@BitcoinMagazine) March 18, 2022
- Lower Transaction fees – With Lightning Network, BTC transactions are cost-effective. The average cost of completing a BTC transaction with an L-2 solution is approximately $0.0004. However, using conventional credit card payment processing methods may accrue fees as high as 3% of the entire transaction volume.
- Privacy – Bitcoin transactions are usually anonymous and private. Users can make purchases without the fear of being battered by ads tailored to their initial purchase. There’s also zero chance of having your private data sold to ad agents and companies.
- Security – Blockchain is backing Bitcoin, which is arguably the most secure innovation of the 21st century. In using bitcoin there is more security as compared to input your credit card details on an e-commerce website.
In conclusion, other important features include the irreversible nature of BTC transactions, its secure network, transparency, fungibility, trustlessness, etc. Also, the launch of the Lightning network helps to facilitate the adoption of BTC as a reliable payment processing solution.
BTC Price Outlook
At the time of writing, Bitcoin was trading at $41,551.97 with a market cap of $790 billion and a 24-hour trading volume of $28.5 billion. The token price is also up by 4.0% in the last 24 hours.
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