Unless you are living under a rock, you have probably heard about the success of digital currency. The most popular one is bitcoin. It has a strong market performance, and many institutions are now accepting the cryptocurrency as a form of payment. By December 2016, it had crossed $2700 in writing. This was a significant improvement in its performance because it was previously valued below $ 1000. There are other digital currencies like alt coins that have also shown a remarkable increase in value over the years. To prevent fraud, bitcoin is based on the blockchain technology which is a distributed database that supports digital currencies. The transactions are recorded and decentralized through computers around the world. Below are some of the benefits of using digital money.
Low Transaction Fees
It is expensive to use credit cards because sometimes the charges can be very high. The costs are high, especially when using one for international purposes. Therefore individuals feel the pinch of using them because the interest charged on them could vary from two to five percent. Instead of paying some amount in transaction fees, consider using digital currency. This is because it is cheaper to make transactions using bitcoin and other digital currencies as compared to using credit cards. Sometimes, the transactions are free of charge.
Inflation is a big problem in third world countries. Central banks often inflate their currencies so that they can keep their heads above the water. Even in the United States, some contend that the inflation rate is higher on so many products and services as compared to the Consumer Price Index. However, with digital currencies, there is no inflation. This is because the quantity limits are controlled as well as the algorithms in the system.
The use of digital currency eliminates the fraud that comes with from charge-backs. Customers may purchase a product and use it, only for them to ask for a refund from their credit companies due to a falsified reason. Businesses will categorize such costs as the cost of doing business. When using bitcoin, there are no charge-backs. Once you receive the transaction from a customer, the sale is complete. You can, however, refund where you deem that to be the right decision for your business.
It is faster to process transactions using digital currencies as compared to other forms of payment. The transactions take just a few minutes although due to the high usage of bitcoin, there has been a noticeable slowdown.