In Bitcoin, unlike a credit card, a payment CANNOT be reversed (“chargeback”). The “chargeback” generates an annual cost of 40 billion euros in fraud for businesses: anyone can make a payment and call their bank saying they have not done so.
In addition, Bitcoin‘s other advantage is that its implementation is free and has negligible transaction costs.
With this and more, many merchants offer a discount on the product’s price if a customer pays with Bitcoin.
We leave you the 6 advantages of Bitcoin to understand why businesses like it:
- Savings in transactions
They will decrease the expense in commissions. The commissions of a payment gateway range between 2 and 3% and include a minimum cost per transaction. This is triggered even more with Paypal, with figures like these: 3.4% + 0.5 euros per operation. Unlike this, with Bitcoin, the transaction costs are close to free regardless of the amount of money you spend.
- No fraud
A business no longer needs to add to the price of its products the extra cost caused by the many and variable credit card scams. In exchange for this, you can put a discount for payment with Bitcoin. Also, there is no way to counterfeit a bitcoin, unlike with cash.
- Higher conversion
In stores, the more payment platforms they offer, the more conversion possibilities they have. Therefore, if we include Bitcoin in its different forms of payment, conversions will increase.
- You will reduce the risk of theft
Another advantage of Bitcoin is that no person can access the money without your consent. Thus reducing the risk of theft. In addition, you will save expenses (since you do not need a box, no safe, or companies that transport your money to a bank), speed up payments, and improve the quality of work of the employees. They will not have to waste time counting money or be overwhelmed with tasks dedicated to management and maintenance.
- Marketing
That a store includes news is very well seen by the target audience. The more technologies and enhancements you provide, the more the customer will value that and the more they will visit you. Bitcoin makes a business make a difference.
- No human fault
There will be no errors when verifying payments, as it is done automatically and quickly.
The great popularity reached by cryptocurrencies in recent years has made many people more interested in learning about this new digital asset. And a recurring question among this growing number of new investors is the advantages of using cryptocurrencies? Or also, why are they so popular? This article will try to answer the first question and present some of the main advantages of using cryptocurrencies.
When cryptocurrencies were created, no one thought about the rapid and overwhelming growth that this new type of crypto active would experience. Neither the acceptance and the enormous expectation that it was going to generate in public. For many, the fever generated by the irruption of cryptocurrencies in the financial markets is comparable to the famous gold rush of the last century, but with the tools and digital technology. These cryptocurrencies are also born from mining.
Knowing what cryptocurrencies are, the risks and advantages involved in operating in the digital market are essential if you want to invest with the possibility of success in cryptocurrencies. Advantages such as decentralization, low costs, the confidentiality of operations and the speed with which transactions are executed are more than enough incentives for many entrepreneurs to be tempted to invest in crypto-assets and operate with cryptocurrencies instead of using money. Trust.
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What are cryptocurrencies?
Before we can talk about the advantages of using cryptocurrencies in finance, we must start by understanding what these new assets are. We can safely say that cryptocurrencies are completely decentralized and intangible new means of payment. Cryptocurrencies are presented as an alternative to the use of traditional money or fiat money. It can fulfill the same functions as traditional money but is represented by virtual currencies using digital security encryption.
To operate with cryptocurrencies, we must forget the idea of physical money. Since, as we have said, they do not materialize on paper or cards of traditional use. Cryptocurrencies are stored and protected in protected virtual wallets. They are created by what is known as the most advanced and secure digital technology: the blockchain n or blockchains. And these wallets can only be accessed through the use of a unique key held exclusively by the owner of the cryptocurrencies.
Why are cryptocurrencies created?
Cryptocurrencies are created to satisfy certain needs that have long been hitting the financial world. Bitcoin is the first and most popular of cryptocurrencies. It was launched on the market in 2009 by a developer known under the pseudonym, Satoshi Nakamoto. It was thought and designed to allow payment in electronic money directly from one person to another, without the need for a central authority to validate this transaction.
It also makes it possible to streamline the different banking operations by eliminating the existing bureaucracy that unnecessarily delayed the closing of many of the transactions due to its cumbersome procedures. In the same way, it was intended to reduce the costs and times of international transactions since the traditional banking method generated high costs (in some cases, they exceeded the amount of the transfer) and lengthy processes. In addition to a slow movement of money and delays in payments from suppliers and creditors.
What are the advantages of using cryptocurrencies?
Every day the use of cryptocurrencies becomes more widespread; let’s learn about the advantages they offer:
Decentralization
Most cryptocurrencies operate in a decentralized manner, depending on their algorithm. They are not subject to regulations or under the control of the government, banking or financial organizations of any kind, and all users of them have the same rights and are equal to each other. In fact, in networks like Bitcoin, not even developers can change the algorithm of their operation, which provides a greater sense of security to investors.
Low transaction costs
Transactions in cryptocurrency systems are carried out according to the P2P principle, without the participation of a central control body. That is, without any intermediary in your transactions. This allows reducing network maintenance costs which significantly reduces transfer costs. Unlike banking and electronic payment systems, users can independently set the commission size and even send transactions without it.
