Bitcoin has remained a controversial digital coin in the market. But despite all the mess, we can see the currency is now becoming the most acceptable means for carrying out some predictions. Bitcoin is now getting accepted through different means for carrying out various transactions. A majority of companies, including online retailers and mobile carriers, allow their customers to pay the money in BTC. We see the list of businesses accepting BTC in a big way with every passing day. Therefore, you can find too many more companies now accepting Bitcoin for selling out their different products and services. On the lower level, we can discover the trend now proving that BTC is not becoming useless for many more digital currency accesses that remain the critics love to gain. It would be fair to say that the potential of this coin is to replace the payment process coming through credit card companies like Mastercard and Visa. It may remain a far-fetched option, but it offers too many benefits for merchants and customers. The digital money replacing the credit cards will take time, but you have ample reasons. If you are interested in bitcoin trading check the enjoying the heat of bitcoin mining.
How do BTC and Credit Card work?
Whenever you buy any product or service using the card at any POS, the money takes time to reach the merchant. The actual process of any dance of different types involves many more things like involving the bank and credit card along with the merchant’s bank and the merchant alone. However, if you want to pay in digital coins, you must transfer the currency from one wallet to another. It is done using the wallet by opening it using a private key. You see the payment recorded with the BTC Blockchain, which works like a ledger to record the transactions. The difference you see is the ledger that remains in the public domain, and then the entries are changed or deleted. As we compare it with the credit card, we push ahead of the payment directly over the merchant. You will not find any third party involved in the process of any transaction that any BTC is defined with the same in a white paper. It says it is a P2P system that works electronically. We will now check why digital currencies can replace credit cards in the following sections.
How can Bitcoin replace the Credit Card payment system?
The comparison of the two often comes along with disparity. People comparing the card with digital currencies tend to discuss the distinctions between the two linked to the processing units and systems. For instance, you can find Visa handling around 240K of transactions per second when digital coins like BTC consume 5 to 7 transactions per second. However, all these comparisons will keep away the critical details of the same. For example, when you swipe the credit card, you will not automatically deposit the money in the merchant’s account. Instead, they will use the credit card companies to talk about the different days to authorize the clear payment option.
We see the coin developed like a payment network and self-contained bank. You can have too many coins to address over Blockchain and then another. You can complete this process in ten minutes or less and then offer the transaction altogether. However, adding the second layer solutions can help add the lightning network, which can scale up the coin to speed to any rival taking to the next level systems. Lightning Network can help offload too many transactions from any main chain and boost network and lightning network offloads. We still see the system becoming popular that can help disrupt methods like Visa or Mastercard in the coming times.
Features you enjoy with BTC and not with credit cards.
As you rely on multiple parties like CC payment systems, it has the chance of inviting too many hackers to pose malicious attacks. When you enter your credit card number with the required classified information on any online store site, you can deduct the money from any CC account. However, if you do it on any unknown and scrupulous site, you are bound to allow the hackers to steal the classified information. Even big companies like Marriott Hotels, Target, Marcus, and Neiman have become victims of losing massive money to hacker attacks. The thefts have led to this problem for many credit card users. The other feature includes lower transaction fees.