Cryptocurrency is a digital alternative to using credit cards or cash to make daily payments in various situations. It continues to grow as a viable alternative to traditional payment methods, but still needs to stabilize before it is fully welcomed by ordinary people. Let's take a look at some of the many benefits of using cryptocurrency:
Fraud – any fraud problem is minimized because the cryptocurrency is digital, which can prevent a reverse or counterfeit payment. This type of action can be an issue with other traditional payment options, such as credit card, due to chargebacks.
Identity Theft – there is no need to provide personal information which can lead to identity theft when using cryptocurrency. If you use a credit card, the store receives a lot of information about your line of credit, even for a very small transaction. In addition, payment by credit card is based on a drawdown transaction where a specific amount is requested from an account. With a payment by cryptocurrency, the transaction is based on a push basis, which gives the account holder the possibility to send only the exact amount due without any additional information.
Versatile use – payment by cryptocurrency can easily be made to comply with certain conditions. A digital contract can be created to subordinate payment at a later date, reference external facts or obtain approval from a third party. Even with a special contract in place, this type of payment is still very quick and efficient.
Easy access – the use of cryptocurrency is widely available to anyone with internet access. It is increasingly popular in some parts of the world, such as in Kenya, where almost a third of the population uses a digital wallet via the local microfinance service.
Low fees – it is possible to complete a cryptocurrency transaction without having to pay any additional fees or charges. However, if a digital wallet or third-party service is used to hold the cryptocurrency, there will likely be minimal fees.
International trade – this type of payment is not subject to direct debits, transaction fees, interest rates or country-specific exchange rates, allowing cross-border transfers with relative ease.
Adaptability – with nearly 1,200 types of cryptocurrencies unique to the global market, there are many possibilities to use a payment method that meets specific needs. While there are many options for using the parts for everyday use, there are also those for specific use or in a particular industry.