Can Digital Currencies Replace Credit Cards?

May 6th, 2019

Can Digital Currencies Replace Credit Cards?

Almost everyone owns a credit card nowadays. They are convenient, easy and help you shop for items online and offline. With the growing popularity of digital currencies like Bitcoin many new businesses and merchants have started accepting it as a mode of payment. Online exchanges are coming up where you can trade Bitcoins using any currency of choice. There is growing competition in the retail sector and there is every possibility that digital currencies could be replacing traditional credit cards. Why so? With digital currencies, merchants can easily lower transaction fees, thus increase profit margins considerably. Replacing credit cards with Bitcoin is surely possible in coming days.

The benefit of Using Bitcoin

Bitcoin comes with a wide range of benefits. From a merchant perspective, Bitcoin is profitable as its charging large fees compared to traditional credit card companies. Most individuals who are using credit cards should be aware of regular fees and with Bitcoin, this may be past now. In today’s time, many credit card companies are available, on an average each of these charges roughly around 2 to 3 percent for every transaction. This transaction fee is paid by merchants themselves. For businesses with small profit margins this fee can be pinching, there is why Bitcoin is the best option. Already several trading or online exchanges are available where you can trade Bitcoins easily.

The traditional banking system has several demerits and Blockchain technology backed Bitcoin is certainly beneficial in many aspects. Fast transactions and low transaction fees make this digital currency profitable in today’s time. The hard reality is the entire credit card business model is focused on soaking money out of common people who can’t afford the debt. There are high interest rates, penalties, and late fees often bothering cardholders or merchants, the best solution to all these problems is to trade Bitcoins.

Shifting of Power

With the new concept of digital currency, power is shifted back towards consumers. All Blockchain backed credit is affordable and fairer than traditional credit card debt. What’s more is when Blockchain backed currencies are used as traditional means of payment these digital currencies offer several benefits over normal methods. The whole concept of digital nature means its free and fast, using this concept you can send money anytime anywhere in a matter of a few seconds. In days to come cryptocurrency cards will be reality and using this will help you save nearly 7 to 8 percent on exchange charges anywhere abroad. Now that’s a big deal!

Digital currencies are highly volatile and investing in it is risky. Anyone considering Bitcoin investment should be prepared for toughest situations, it’s always safe to know the worst before going ahead. Many experts believe Bitcoin could replace traditional credit cards in coming days. Using Bitcoin as payment will ensure security and efficiency, it will also allow retailers to receive payment for all goods and services.  The only hindrance to this reality is the stability of the cryptocurrency market, which will only come with time and an increase in the number of transaction volumes.

Bad news for Credit Card Companies

Blockchain backed digital currencies are already giving tough competition to many currencies across the globe. Financial institutes are agreeing to the fact that Blockchain technology is a new concept with wide possibilities. If digital currency cards become a reality it will be a bad news for companies like MasterCard and Visa. Presently these two companies dominate the payment industry since financial institutes who issue these cards are taking a good percentage. For Bitcoin investors, this is a good news, in coming days it will raise the adoption rates exponentially and boost its price.

Bitcoin enthusiasts still have to wait for sometime before Bitcoin payment methods become a reality. Till then, use the traditional method and wish Bitcoin payment system is implemented at the earliest.

This disclaimer informs readers that the views, thoughts, and opinions expressed in the text/sponsored content belong solely to the author, and not necessarily to Bitcoin of America, organization, committee or other group or individual. All investments are at your own risk and should be done after careful research.

 

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