In previous years, paying with cryptocurrencies was really difficult. You have to find retailers that would accept digital coins at the checkout and this of course was not easy.
Although they have been available for over a decade, only now are traditional businesses beginning to realize the benefits of adding cryptocurrencies as a payment method. Starbucks, one of the most famous coffee chains in the world, plans to integrate direct payment with cryptocurrencies by 2020.
Certainly, for those who pay for their double, plain, non-fat, mint-flavored and white chocolate cappuccino with Bitcoin in more than 30,000 stores worldwide, it is an important step in terms of mass adoption. But let’s face it. It’s not going to make your life any easier if you want to pay for other things with cryptocurrencies.
Some companies develop cryptocurrency debit cards, which allow payment with the most popular virtual currencies anywhere. This means that even if the retail store does not accept cryptocurrencies, you can still use them for payment using such a card.
The question that remains is one.
Do you really want to pay with cryptocurrencies for your next shopping?
Do not think that there are disadvantages to paying with Bitcoin and other cryptocurrencies.
For example, if you pay for a T-shirt with Bitcoin today and the price of Bitcoin goes up tomorrow, you may end up paying more for the same item. However, it is possible to mitigate opportunity costs by using stablecoins instead of volatile cryptocurrencies.
Now, let’s look at the reasons why you should pay with cryptocurrencies in the future.
1. Low fees
Banks, along with other financial institutions, provide incentives for people to keep their hard-earned money in their vaults. Banks are smart. They try to entice people, making them believe that keeping money in their own accounts is simply the best option for securing their money.
Emerging Challenger banks, such as N26 or Revolut, work hard to make banking services friendly and convenient for the general public. However, these facilities come with a cost. These banks charge fees of all kinds – ATM fees, merchant fees, debit and credit card charges, inactivity fees, maintenance fees, foreign transaction fees and the list goes on and on.
At the end of the year, you realize that you have lost a lot of money due to a large number of micro-charges, imposed by the institutions themselves, who promised to take care of your money.
The banking system did not face real competition until the appearance of cryptocurrencies. With digital currencies, transactions are not processed by brokers, thus significantly reducing fees. Blockchain fees only reflect the energy spent on recording a particular transaction and this tends to be a minimal cost compared to the normal bank fee.
2. Improved data protection
Banks, credit institutions and service providers have control over the personal information belonging to their customers. This information includes name, age, net worth, assets, account balances, credit, home address, employers and more. If any of these data points fell into the wrong hands, the consequences could be dire for your bank account.
Cryptocurrency payments offer an alternative that includes limited data from users.
Paying digitally allows you to stay away from any impersonation. While a third member may require your name, your remaining information remains confidential.
3. The cross-border nature of cryptocurrencies
Globalization has given us choices. If you think that local stores have high prices, you can find alternatives in other countries. But cross-border transactions can lead to extra charges and delays.
Sending money from one country to another is a costly, time consuming and slow process that leaves recipients with less money in their pockets. The money goes through a series of exchanges before reaching their final destination.
The use of cryptocurrencies, on the other hand, is flawless. Funds move from point A to point B without interruption, in seconds and with extremely low charges.
4. E-commerce friendly
The number of cryptocurrency users is growing despite the declining market trend.
Thus, it is vital for business owners to allow customers to pay the way they want.
Retailers could also benefit from accepting digital currencies. The BitPay online payment portal already processes $ 1 billion in cryptocurrency transactions annually.
Processing their credit and debit card payments costs them money, while cryptocurrencies are usually credited directly to their accounts at no charge. Shopify and Etsy merchants have recently integrated cryptocurrencies into their coffers.
5. Easy to use and safe
With the advent of NFC technology, the number of people actually scanning their cards has dropped significantly. Today, all you have to do is take out your smartphone and… finally! The payment is done.
But while this sounds like a lot, it also exposes you to some additional risks. Those with NFC readers could easily access your card data and – possibly – your funds.
Cryptocurrencies offer an equally convenient way to pay digitally using your phone, but they do have additional security measures that prevent intruders from accessing your personal data. One could either transfer cryptocurrencies directly to a business from his wallet or use a prepaid cryptocurrency card with the specific amount required to purchase.
6. Increasing adoption
There are over 42 million cryptocurrency wallets out there. And that number does not seem to be declining. Quite the opposite. What started as an experiment in a basement a decade ago has turned into a multi-billion dollar market and an alternative to the traditional financial system.
Cryptocurrencies are now being adopted en masse with large companies such as Facebook and Telegram developing their own currencies. At the same time, central banks are already experimenting with the CBDC and China is expected to launch the digital yuan. Countries struggling to manage their own economies, such as Zimbabwe and Venezuela, are also turning to cryptocurrencies to fight inflation.
7. Complete capital control
Old payment systems are structured by third parties. It’s your money, your account, but the bank still has tremendous control. Your account may be frozen or closed if the bank deems it necessary.
With cryptocurrencies, you are the owner of your wallet and you act as your own bank. You control it completely, as does the money (digital assets) stored in it.
8. Tax implications
Governments around the world are still struggling to figure out how to regulate or tax cryptocurrencies. At present, some US states only tax them when converted to fiat currency. Therefore, paying with cryptocurrencies allows you to reduce the tax burden.
Source: www.wegreece,com.gr
