If you haven’t been hiding away, you’ve probably heard about the impressive market success of virtual currencies.
The value of a bitcoin has been lesser than $1,000 on December 31, 2016, but as of this writing, it has risen to over $2,700. Altcoins, or alternative digital currencies, have also seen price increases, sometimes even outpacing bitcoin.
The blockchain is the technology upon which virtual currency operates. Digital currencies like bitcoin rely on blockchain, a decentralized database. Pseudonymous and distributed throughout a network of millions of computers, it provides a permanent record of transactions. The blockchain technology that underpins Bitcoin and other virtual money place faith in algorithms rather than a central authority.
Inexpensive Transaction Charges
Foreign transaction fees on credit cards are very high. Transaction fees might be anywhere from two percent to five percent or more. When users have to pay hundreds of dollars in fee income to process payments from clients in foreign countries, it does hurt. The transaction fees for using the network, Bitcoin, and other virtual money are very low if not zero, especially if you are linked with trading sites like bitcoin loophole or other reliable systems.
A Full Stop On Chargebacks
The use of bitcoin eliminates chargeback fraud. It is not uncommon for customers to make a purchase, utilize the item in question, and then file a claim with their credit card provider for a complete refund, citing a fabricated reason for the return. This is typically viewed as an inevitable expense by businesses.
Taking bitcoin eliminates the possibility of chargebacks. When you receive payment from the buyer, the sale is finalized. As a responsible company, you can, of course, issue refunds if you so want. It’s comforting to know that if you suspect fraud, you can dispute the transaction without having to issue a refund.
Faster Funds Transference
There has been a constant hurdle faced by several investors when it comes to international transactions. It’s terrible enough that that takes days, sometimes weeks, for the money to show up in the bank account. Thanks to trading systems like the bitcoin loophole that now digital currency transactions have become a process of mere clicks.
Although the majority of transactions are processed in a matter of minutes, the rising popularity of bitcoin has caused a recent lag. Still, this is a significant improvement over the lengthy processing periods associated with traditional financial systems. You can compare the time it takes to send an email vs a letter by regular mail.
Reduction Of The Economic Hike
Many countries in the developing world have to artificially inflate their economy to keep economies afloat, which is a major concern. This is true not only in Europe but also in the United States, in which some claim the inflation rate is significantly higher than the Consumer Prices Index suggests for numerous items. As a result of predetermined supply restrictions and the underlying mechanism, bitcoin has no inflation.
Since clients’ credit card data is not stored on the servers, you can gain their trust. In the wake of hacks on large corporations like Target, JPMorgan Chase, and Home Depot, customers have seen their saved credit card information compromised.
With cryptocurrency, this is impossible. Instead of providing their actual credit card number, clients just provide a one-time encrypted code. Your clients’ sensitive financial information will be safe in your processing systems.
The Bottom Line
Diversification is the key to protecting your company from the ups and downs of any single economy, and you can do this by setting up a shop so that you can accept payments from customers in different nations. This opens up more avenues for making money and reaching people all around the world. While the global economy has been in shambles recently, the digital infrastructure provided by developing technologies has helped to encourage healthy domestic and international trade. As the world economy begins to strengthen again, distributed ledger technology (DLT) appears poised to play a crucial role in its revival.
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