Have you ever wanted to buy something online? In the 21st century, that question may seem hilarious, with sites like Amazon being used on a daily basis by millions of consumers.
But how many times did you find a gripe with the process? Maybe you needed to wait for the PayPal payment to be processed, or your card was rejected. Maybe you were excited to buy your item only to find that your bank had declined your purchase for “security” reasons? And then, you had to wait 2 working days to get someone over the line to have your issue fixed.
You may have heard of Bitcoin as an investment vehicle, but did you know that it solves all the above issues when used as a currency? This is why recently, even KFC has started accepting Bitcoin.
So, what makes Bitcoin an excellent alternative payment method?
With all the privacy scandals going on these days, it is comforting to know that no-one can get your information from your payments. Unfortunately, with PayPal and your credit card company, you don’t have control over your personal data, and your privacy may be compromised.
Cryptocurrencies like Bitcoin solve this issue because many of them ensure that they’re entirely untrackable — pseudonymous, or totally anonymous. This has more benefits than it might look like at first glance.
For example, think about what your spouse would say if she saw a $1500 expense for a guitar (or another expensive hobby) on your joint credit card statement. Using crypto to pay cuts this worry out.
As Nassim Taleb said: “Bitcoin is the beginning of something great: a currency without a government, something necessary and imperative.”
In today’s increasingly tracked world, paying with cryptocurrency is one of the few ways we civilians have to protect our data.
Transferring cryptocurrencies like Bitcoin often incurs much lower fees than using banks or PayPal.
For example, with Paypal and most banks, it will cost you at least 3.5% to send money abroad.
To put this in perspective, you would pay $35 for a $1,000 transfer. With Bitcoin, the same transfer would cost you on average $1.5.
While that 3.5% might not look like much at first, it will add up quickly.
Even though there are many areas where Bitcoin is superior to traditional payment methods, it does have a few flaws of its own.
- Bitcoin isn’t yet offered massively as a payment method.
- The price of Bitcoin is quite volatile — this will change as it becomes more accepted.
- It’s a tad slower. Paypal payments tend to be instant, while Bitcoin usually takes one or a few hours – and up to 24 hours to be fully processed.
- You’re more likely to have your Bitcoin wallet hacked than your PayPal account if you’re not comfortable with the topic of cryptocurrency security.
Keep in mind that most of these flaws come from the fact that Bitcoin is quite new. After it has spent a few more years as a currency, security and usability will improve, and Bitcoin might become easier than Paypal or banks to use.
If you’re thinking that the pros of paying online with Bitcoin outweigh the cons, you might consider purchasing your first piece of Bitcoin. As a crypto newbie, one of your biggest struggles is the process of buying Bitcoin.
In general, you’ll want to register with a broker, who will supply you with Bitcoin. This is quite similar to the process of buying stocks.
On the other hand, you can also use a cryptocurrency exchange that’s going to connect you together with sellers. This is often a cheaper process than proceeding with a cryptocurrency broker.
Due to the breadth of the topic, you should educate yourself before you get started — this CryptoManiaks article is an excellent place to start.
To read more on topics like this, check out the business category.