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Pros and Cons of Bitcoin for Online Payments

Interesting how one thing can be of such great importance, how it can change how we perceive money and the current monetary system. For many years now, everyone was talking about how cash is overrated and a thing of the past, which was mainly a way of a commercial for various debit and credit cards, but what they overlooked is the fact that in order to do business, we actually don’t need banks, at least not in this form. Yes, it is about cryptocurrencies and how they change the whole idea of dealing with money, and Bitcoin is the synonym for all other cryptos.

Everything with cryptos is much easier than with any regular fiat currency, and the only thing that may trouble someone is not knowing how it all works. Of course, there are many questions about whether it is safe and secure enough to pay or receive payments in Bitcoin, but that is why we will now take a closer look at the pros and cons of BTC payments. For those who want to find out more about some specifics of Bitcoin, there is no better place to do so than www.savingadvice.com, so let’s start.

Source:csoonline.com

Pros:

1. Lower fees

Using cryptocurrencies for online payments can save you a little money because transaction fees are not that high, like in the situations when the payment is made by a credit card or directly from a bank account. Because of that, it makes cryptocurrencies ideal for international purchasing since sometimes fees can be higher than the price of the product. By using Bitcoin and other similar currencies, you will easily avoid that problem and only pay what is needed, no matter where the transaction is made. Unlike using any other way of payment, when you use any crypto, the only fees to worry about are the ones the exchange or payment platform has.

2. Instant transactions

The other excellent thing with BTC transactions is that they are instant, and it doesn’t matter if you are the one sending the money or receiving it – everything is complete in a matter of minutes. That can be helpful in situations when the payment needs to be finished quickly, close to some deadline. It is a great method since one can finish everything with only a few clicks, so there is no reason to be nervous. The funds will appear on the other account as soon as you complete the transaction, and the owner of the account can use them at that very moment. It can be perfect when you want to send some money to a friend or a member of your family since, besides low fees, they will get it instantly.

Source:wealthandfinance-news.com

3. The transactions are anonymous

In some situations, a person who is sending money wants to remain anonymous, or the other way around, and doing it through the bank services or with a credit card cannot guarantee that it will be that way, anonymous. Bitcoin transactions are ideal for that because there is always a possibility of hiding the identity. Of course, by reading this, some will say that it is mostly for those people who are not on the right side of the law, but that’s far from the truth. Just think about how many people want to try out something from a sex shop or want to explore their sexuality but are too shy to go to one of these stores. It is just one plain example, but enough to prove that anonymity has many advantages and is not only for criminal activity. Crypto transactions require only a username, so you can make an anonymous donation whenever you want. Disposing of your money is your business, so no one will ask you to whom and why you are sending it.

4. No third-party

The big problem with every transaction before the appearance of cryptocurrency is the involvement of a third party. It is usually the bank where we make the payments, and it is something impossible to avoid. Any payment made in Bitcoin is different because there is no third party involved in any way. Everything is performed only between the sender and the receiver, so no one else is included, so there is no need to worry about the possibility that someone will know anything about that. The whole idea was to make our money ours, with no intruding done by the government nor bank, and all that makes the transactions faster and more secure. It is also one of the reasons why the fees are lower than those for classic payment methods and why so many people are accepting cryptos.

Cons:

1. Security problems

Source:theguardian.com

Because of the popularity and the high price of Bitcoin, along with the fact that it is necessary to have an internet connection to manage the funds, it is something that many hackers are trying to reach. That may sound like an unsafe way to store the funds, and many people are skeptical about it, but it can be solved. The same thing was with credit cards once they become a popular way of payment because people didn’t trust the new thing easily, but today it is almost impossible to find the person who doesn’t own at least one of them. The situation with Bitcoin is the same, and if you are worried about security, the only thing you should do is to use reliable platforms for storing and trade it. It is as simple as that, and if you already have some investment, it is quite obvious that you will use trusted and verified platforms to deal with your money.

2. Price Volatility

Unlike fiat money, where people at every moment know and understand the buying power of each currency when it comes to cryptos, no one can guarantee that the price will not get higher or lower, even for a short period. And all that would not be so troublesome if that price volatility isn’t high, meaning that the value of 1 BTC could rise or fall a lot in just a couple of days. Of course, even the fiat currencies face changes in their value (just look at the USD and how its value declined over the past few years), but those changes are small and slow, and people have time to adjust.

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