Cryptocurrencies, like Bitcoin, Ethereum, LiteCoin and other, have many potential benefits when they are used as payment methods. There are significant benefits over the classical means of payment like credit cards, wire transfer, or even cash. In this post we are going to see what the most important benefits are.
To be clear, most of the today’s cryptocurrencies are currently not being used as a means of payment or performing everyday monetary transaction. Or at least not on a grand scale. The reasons are numerous, but probably the most important one is they are not widespread enough. The benefits we are talking about here are given from a principle point of view.
1. No Third Party Involved
The main benefit is you don’t have to have any third parties involved. Just the one you are sending money and you. This is great, but on the other hand, it can be a little bit scary, because if you make a mistake in the process there is no authority to go to and ask for refund.
2. Low Fees
Actually, the first thing you should know about is that the fees are not dependent on the amount of money you are transacting. This means, you can send huge amounts of coins for a very low fee. You can set the actual fee based on the speed you want your transaction to go through. Compared to ATMs, credit cards, debit cards, wire transfers, deposits, etc., your fee can be really minimal.
3. Borderless Transactions
The payments are global and borderless. You don’t have to pay any extra fees for oversees transactions. It’s the same charge as when you pay locally. Cross border transactions are usually charged extra when you use the banking system. This is a huge benefit for people working abroad who want to send money to their loved ones at home. Whole industries in the remittance sector are earning a lot of money from poor workers who don’t have other means of sending money cross border.
You don’t have to give your private information to anybody. You can send money anonymously or semi-anonymously. No ID, or personal info, not even your name or address are necessary. Different cryptocurrencies offer different levels of privacy and anonymity. For example, Bitcoin is not totally anonymous as all transactions are written in a public ledger. Although there are no private data stores, still the transactions can be followed by interested parties and certain information about the sender and receiver can be deduced. On the other hand, Monero and other privacy cryptocoins can offer better protection of your privacy.
You don’t have to be at home, nor in from of the bank teller to send money. You can use your mobile phone. Just write down the crypto-address of the person you are sending money or use the bar code of that address, and start up your mobile phone to do the transaction.
Cryptocurrencies have many advantages over classical means of payment. In this post we have presented 5 of the greatest benefits of using Bitcoin and other cyprocurrencies. The only obstacle on the road is a wider adoption, but as the technology matures, more and more people jump on board convinced in the usefulness of this new form of payment.