Pros and Cons of Bitcoin online payments
Bitcoin is one of the fastest emerging online payment methods out there. Although it is still being considered as a trading asset, it has massive potential in mainstream usage. Many large corporations have already discussed making their platforms accept Bitcoin, but these are just talks still.
There are a lot of ways that Bitcoin can benefit and e-commerce business for an individual. The old days where transaction fees rack up and damage your business are becoming history as cryptos move in with their luggage. What’s important to know is the pros and cons you’ll be facing with Bitcoin, because nothing is perfect. There will be some problems you could face with Bitcoin and we believe that you should be prepared for it.
Alrighty, let’s begin with the pros, shall we?
Pros of using Bitcoin
The transactions fees with Bitcoin can be totally tailored to your taste. The reason behind it is that there will be no middleman between the transactions. It will happen peer-to-peer, where you will receive the payment directly from the buyer and not a processing through a bank or credit card company.
You see there are numerous ways this is a pro. The main one is that credit card fraud is still a serious issue, not many large corporations have dealt with it yet as well, what happens is that one day you may see that the payment had been received, you pack the item, you ship it and the payment gets retracted because of a cancelation from the customer. Not only will you have to then pay the balance, but you’ll also lose the product, further spiraling you into losses.
Online casinos used to have the same problem, that’s why most of them are now moving towards a new system of Bitcoin payments, you can easily see the pros when you compare them to each other.
One of the worst features of bank commissioned credit cards is that all of your payments will be screened and saved on your personal history. Therefore if you make a purchase of a “questionable” item, you can bet that the bank will find out, therefore destroying any type of privacy. You may not care about this right now but imagine this. You get the opportunity to become a CEO of a large corporation in the future, or a public figure. Even though you may change banks, your personal history of transactions still stays with them, therefore if you have any purchases in the past that you wouldn’t want to be public, these banks can have some sort of leverage over you.
With Bitcoin transactions, everything is anonymous, it’s only between you and the merchant. The moment the payment is made its off the books and nobody will ever find out.
Cons of using Bitcoin
As we’ve already mentioned, there is no perfect method to make transactions. Both of the options have their pros and cons and Bitcoin is no exception. In terms of stability, Bitcoin should not be the first choice. Some may argue that fiat currencies don’t offer too much stability themselves, but compared to cryptos, a change in the price of USD can be nothing compared to Bitcoin.
Imagine if you were selling some items last Winter only based on Bitcoin, For example, you sold a car for 1 Bitcoin and kept it, what would you have now? In the case of fiat currencies, you may have lost about $1000 tops in case the dollar went down, but Bitcoin plummeted by more than 200%, so in the future you don’t have a guarantee that when you get $1000 in Bitcoin on the first day, you’ll have $1000 the next.
There is no ultimately secure space for storage anywhere. But in terms of encryption and sophistication, banks have the upper hand. They are way harder to hack into than e-Wallets. Besides, if there will be a hack made inside the bank’s system, they can always trace the stolen cash. In terms of e-Wallets, it could prove a lot harder because of anonymity.
Finally, we wanted to highlight all of the key points that we mentioned. If you look closely you will see that the Pros are based more on facts than a hypothesis. For cons, it is the other way around. So it creates a gap between the two, with the pros you know what will happen, but with the cons, it’s only fair to speculate.