Published 1 month ago • 3 minute read

How Good Are Cryptocurrencies as Alternative Payment Methods?

In recent years, cryptocurrency has taken over the world to become a valid payment method within a wide range of industries and sectors on a global scale. This is largely due to the fact it provides greater safety and security for merchants and customers alike and is less likely to fall victim to a number of external threats or human error. Continue reading to find out how good cryptocurrencies are as alternative payment methods. 

How Good Are Cryptocurrencies as Alternative Payment Methods

They provide user autonomy

By paying for goods and services with cryptocurrencies, customers will experience greater autonomy than if they were to do so with traditional, or fiat, payment methods that are subject to a number of risks and restrictions. For example, banks are only as financially secure as the current economy and have been known to fluctuate over time. This has, historically, led to bank runs and crashes in the past where users are no longer in control of their money. By making the switch to cryptocurrencies, on the other hand, users are less likely to be negatively impacted by government policies or recurrent boom and bust cycles.

They are legal tender in a number of countries

When it comes to analysing how good cryptocurrencies are as alternative payment methods, their ability to qualify as legal tender is a suitable test. For example, El Salvador made history this year by becoming the first country to enable consumers to pay for goods and services with Bitcoin and is in the process of installing over 200 ATMs ahead of its implementation in September. With more countries expected to follow suit in the coming months, Canada has also permitted its inhabitants to purchase goods and services online with cryptocurrencies on e-commerce platforms and online casinos, such as GGPoker Canada as a prime example.

They do not require banking fees

During the process of completing a transaction online or in-person, many require the approval of a third-party and the payment of an additional banking fee, or maker and taker fees, and even a deposit and withdrawal fee. When it comes to cryptocurrencies, however, users are not subject to the litany of standard banking fees associated with traditional payment methods and are, therefore, also free from paying maintenance fees, minimum balance fees, overdraft charges, and returned deposit fees, just to name a few. This can end up saving both parties a considerable amount of time and money in the long run.

They are irreversible

By paying for goods and services with cryptocurrencies, you are, essentially, accepting that your transaction is irreversible. Whilst this is a common worry for consumers unfamiliar with the wide-reaching benefits of digital currencies, it means it can no longer be amended by a third-party such as a financial agency or government body. It is also impossible to file a charge-back for a cryptocurrency payment you have sent with the only way to do so is by encouraging the recipient to return the original payment to you. 

They are accessible

With cryptocurrencies now commonplace on desktops, smartphones, and even smart devices around the world, they are one of the most accessible payment methods available to investors and everyday consumers today. To pay for goods and services with cryptocurrencies, you also do not require a traditional banking system or a credit card.

With cryptocurrencies now a valid payment method within a wide range of industries and sectors on a global scale, their success can be contributed to the fact that they provide user autonomy, they are legal tender in a number of countries, they do not require banking fees, they are irreversible, and they are accessible.

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