Its been almost 10 years since the first usable cryptocurrency was invented – Bitcoin – and it appears its usage its growing day by day. Bitcoin started as a peer-to-peer electronic cash designed to eliminate the middleman from transactions. Basically, instead of paying a fee to the bank, you’d pay a way way smaller fee to the miners which are confirming the transactions. The process of confirming the transactions its called bitcoin mining and its way more cheaper and faster than a bank transfer. But also, it has its risk. If you send money to a wrong address, the money could be lost forever.
Instead of trusting a bank to do the transfer, the trust here is divided by the two parties who make the transfer. And with a system like this, can we expect cryptocurrencies to become a regular payment method across all types of businesses?
The question that remains now – is it reliable to use Bitcoin as a payment method? The question is not so easy. If we’re speaking about Bitcoin casinos, bitcoin can easily be used as a reliable payment method. It’s more safe than a bank transfer where your bank could block the transfer or delay it for a couple of hours or days. With Bitcoin, you transferred them and in less than 1 hour you can play with them.
If we’re talking about an eCommerce store – bitcoin payments can easily solve a big problem. Most of the stores were accepting Paypal a while back – but they had issues with clients that received the product and requested a refund. This is damaging the businesses and that’s why most of the businesses accept only a few payment methods – such as credit cards or bank transfers, where its harder to ask for a refund. Accepting Bitcoin on a store would be easier – especially that there are services that will convert the amount in FIAT if it’s necessary. There’s only one thing you need to be careful here – picking a good, reliable ecommerce store.
Bitcoin as a solution in B2B – can bitcoin solve any issues in B2B solutions? Well, yes. Whenever you want to transfer a large amount of money to another person by your bank – the fees would be more than 3-4%. Using Bitcoin, it would probably be a few dollars – the fee that you’d pay the miners. So, the fee would be lower than by using a bank and the time required for the amount to reach in the other person’s wallet would be 1/10th or even less than using a bank.
To conclude, is Bitcoin a reliable payment method? Yes, it is. You can use bitcoin right now to purchase most of the stuff that you’d buy with FIAT. And probably in a few years we’ll see all the giants accepting it as a payment method. We’re not there yet, but we’re getting close
First of all, cryptocurrencies aren’t for everyone. It’s hard to explain this technology to your grandpa and most people won’t use something that they don’t understand. So we’re not there, yet. But the young people are adapting with technology and they’re embracing it at the early stages. Almost every kid between 10 and 16 years old from a tier 1 country owns a smartphone, a tablet or a laptop.
In a world where every transaction will be made cashless, cryptocurrencies will stand as the pillar of the economy. Of course that from the number of cryptocurrencies that are now, only a few of them will survive. But the ones that will do will revolutionise the way we transfer value.
It might take a few years, a decade or even more – but cryptocurrencies would be used in the future to transfer value and most of the banks will disappear or their own purpose would be as custodian services for cryptocurrencies or as an escrow at high value transactions.
Bitcoin and other respectable cryptocurrencies are not so far from being widely used as a reliable payment method. It might take a few years,a decade or more – but a cashless society is the future. And cryptocurrency is that cashless way of exchanging value.