7 Benefits Of Using Digital Currencies

Unless you’ve been living under a rock, you’ve probably seen the news about the strong market performance of bitcoin and other digital currencies.

Bitcoin was valued at less than $1,000 on December 31, 2016 and has crossed more than $2,700 as of this writing. Other digital currencies, called alt coins, have also seen an increase in value, sometimes at a higher percentage than bitcoin.

Bitcoin is based on the blockchain. Blockchain is a distributed data base that supports bitcoin and other digital currencies. It allows for an immutable record of transactions that are pseudo-anonymous and decentralized through millions of computers around the world. Bitcoin and other digital currencies operate with blockchain technology so trust is in mathematics rather than a third party.

Benefit # 1 — Lower Transaction Fees

Credit card charges can be very steep, particularly with international use. They can range from 2 percent to 5 percent or more on transactions. I always feel the pain when I end up paying a few hundred dollars in transaction fees to accept payments from my clients who are in other countries. By using the blockchain, Bitcoin News Today and other digital currencies, you pay a much lower fee, sometimes none.

Benefit #2 — No Chargebacks

By using bitcoin, you stop the fraud that comes from chargebacks. Sometimes customers will purchase a product and use it, Banking  Financial Services then ask for a full refund from the credit card company for some falsified reason. Businesses often look at this as a cost of doing business.

By accepting payments in bitcoin, there are no chargebacks. The sale is complete when you receive the transaction from your customer. Of course, as a good business, you can refund where you deem it to be a good business decision. It is nice to know that you're not required to give a chargeback when you believe fraud is involved.

Benefit #3 — Faster Receipt Of Funds Than Through Legacy Financial Institutions

I mentioned earlier a problem with the fees associated with international transactions. Financial Institutions News that is bad enough, but the pain is exacerbated when it takes days or sometimes weeks to see the funds appear in my bank account.

The speed of processing transactions is usually completed within a few minutes, though lately, with the increased use of bitcoin, we have seen a slowdown. Nevertheless, it is still much faster than transaction times with legacy financial systems. Think of it like the speed of sending an email vs. sending a letter through snail mail.

Benefit #4 — No Inflation

This is a big problem in many Third World countries, where central banks inflate their currency to try to keep their head above water. We also see it in the United States, No Inflation Pay Rise where some contend the inflation rate is much higher on many items than the Consumer Price Index indicates. With bitcoin, there is no inflation due to controlled quantity limits and the algorithms in the system.

Benefit #5 — Greater Trust With Your Customers

You establish greater trust with your customers as their credit cards are not stored on your computer system. Large companies like Target, JPMorgan Chase and Home Depot have experienced cyberattacks, and their customers had their stored credit card numbers exposed.

This cannot happen with digital currencies. Your customers don’t give you a credit card number, only a temporary encrypted code for processing. Crypto News your customers will know that their private financial data is secure with your processing systems.

Benefit #6 — Win Over A Dedicated Loyal Group Of Digital Community Enthusiasts

This is an important marketing message. Digital Cryptocurrency News currency users tend to be very enthusiastic about what is possible using this new financial instrument. They tend to favor and do more business with those businesses that accept bitcoin and other digital currencies.

Benefit #7 — You Make It Easier For International Customers To Do Business With You

This can increase revenue. When you can position your business to receive money from people in other countries, you diversify to mitigate economic fluctuations in any local area. International Customer Service this gives you more revenue-generating opportunities, and it enables you to serve customers worldwide.

These are just seven of the many benefits that can exist for businesses that embrace this new and vast-growing technology.

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