There is still a significant lack of knowledge regarding cryptocurrencies as a means of payment, which produces mistrust. Not further from the truth, it is a reliable payment method that has a multitude of advantages.
The world is dynamic, not static, hence we are currently going through the disuse of cash, and new forms of payment are coming into force. If you are still wondering if virtual currencies can be used as a form of payment, the answer is yes, and here are five advantages of paying for products with cryptocurrencies.
1. Flexible Payment
With all kinds of online payment systems, it is possible to pay on your mobile, which is also possible with cryptocurrency. Wherever there is internet access, you can make online transactions with your cryptocurrency on your smartphone. This means that you never have to travel to a bank or a store to purchase a product. Very handy, of course.
Online payments are also possible using a bank account or credit card. Unfortunately, this has the disadvantage that your personal information is required, which is not the case if you do the transaction online with cryptocurrencies.
The purchases you make with Bitcoins are discrete unlike paying with cash using money transfer companies. Unless a user chooses to make the transaction public, their transactions will never be associated with them in any way possible because with every transaction, the address generated for purchases will change, although this is also true in the case of purchasing with cash.
This does not mean that the transactions with cryptocurrencies are done completely anonymously, or they are also not wholly untraceable. However, these purchases will be much less easily linked to personal identity than is the case with most traditional payment options.
3. Global Payment
One of the obvious advantages of making payments with cryptocurrency is that it has no geographical restrictions; hence location has no bearing on its value and speed. Thus you can make international payments with little or no fuss.
4. Minimize the Possibility of Fraud
Another advantage of using cryptocurrency for payment is multiple signature authorizations and accounting transparency. Multi-signature means that numerous people have to sign a payment, which offers more security.
And the very nature of a blockchain – where all transactions are public – enhances business transparency; this makes it almost impossible for any data to be altered, for example, to increase, decrease or delete records.
5. Tax Reduction
Typically, foreign purchases and wire transfers attract hefty fees, including taxes. However, since there are no middlemen or government involvement in cryptocurrency exchanges (cryptocurrency is decentralized), the cost of transactions is usually very low due to this.
Cryptocurrency is a viable payment method like any other, only that, instead of being physical money, it is digital. Certain experts say it is the money of the future and, after all, almost everything is being developed under a digitization process. Why shouldn’t the entire financial system be too?