Bitcoin Will Replace Credit Card Payments

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Contrary to some predictions, Bitcoin is quickly becoming an accepted means of conducting transactions. Major companies like online retailer Overstock.com and mobile provider AT&T already allow customers to pay in bitcoin. And the list of businesses accepting bitcoin keeps growing every day.

On a basic level, this trend proves that bitcoin isn’t a useless virtual currency as critics love to claim, but it also represents something more fundamental: Bitcoin’s potential to replace legacy payment processing systems like Visa and MasterCard.

Perhaps this may sound far-fetched, but there are plenty of advantages that Bitcoin offers both consumers and merchants. And if you know anything about the creative destruction inherent in capitalist societies, Bitcoin replacing credit cards is only a matter of time.

Let’s look at the anatomy of credit cards and Bitcoin payments before highlighting the differences between both of them.

How Do Credit Card Payments Work?

When you pay for a product with your credit card at a point of sale, the money doesn’t go directly to the merchant as you may think. The actual process is a dance of sorts, involving you (the cardholder), your bank, the credit card network, the merchant’s bank and the merchant.



Source link Bitcoin Magazine

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