Many people are still divided about cryptocurrencies. The skeptics are not sure what advantages they present to the world if they are adopted as the replacement to fiat currencies. However, despite this skepticism, they are increasingly being accepted as a payment mode by different companies and businesses all over the world. But why? Let’s look at some of the benefits of cryptocurrency payments for businesses and customers.
- Do cryptocurrencies increase autonomy?
There is no doubt that cryptocurrencies like Bitcoin increase customers’ autonomy. Look at it this way. When you go to your favorite bakery and order a croissant, you will often pay with your credit or debit card unless you are paying cash. The bakery notifies the bank that you have authorized payment, and the bank then releases the money to the bakery. However, there are times when the bank may refuse to transfer the money to the bakery, and in such cases, you may be informed that the transaction has been declined.
What does this mean?
It means that you are really not in charge of your money. The banks are. That is why the bakery has to ask the bank for permission to transfer money from your account to theirs.
How are cryptocurrencies different?
When you have money in your cryptocurrency wallet, the wallet and the money all belong to you. If you chose to pay the bakery from your cryptocurrency wallet, the money is transferred directly from your wallet to the bakery’s wallet as long as you have the money to pay. You do not need to ask anyone for permission, and you are 100% in charge of your money. This autonomy away from intermediaries is one of the biggest selling points for cryptocurrencies.
It should be noted that cryptocurrencies cannot eliminate third parties altogether, especially when these cryptocurrencies networks interact with other databases. But they reduce their control significantly. All this is possible thanks to the cryptocurrency’s blockchain, onto which all transactions on the network are recorded and shared with everyone else on the network.
- Cryptocurrencies allow for near-instant transfers
Many people, after finding a product or service that they like, want to pay for it immediately. Let’s say you have found an excellent casino and you want to take advantage of their mobile casino bonus. Often this means that you have to deposit money immediately to access the bonus and start playing. Unless the casino has a long and complicated process, you should easily be able to transfer your money to your casino’s wallet, thanks to cryptocurrencies.
This is partly thanks to the autonomy we mentioned in the first point. You are the boss of your money and do not need to ask the bank to verify your transaction. This is also really great for players who are joining the casino from outside the casino’s jurisdictions and who have no access to the casino’s approved list of financial instruments like accepted banks and credit cards.
But all this is not necessary with cryptocurrencies. As long as you have access to your crypto wallet and to the casino’s wallet address, send money to that account. The money will be received as soon as the transaction is recorded in the cryptocurrencies blockchain.
- How private are cryptocurrency payments?
Some cryptocurrencies are more private than others. This means that with sufficient incentive, it would not be difficult for law enforcement authorities to decrypt crypto-transactions and find out the people behind them. However, there is another element of privacy that comes with cryptocurrencies that many people love about it.
Let’s look at it using the casino example again. Let’s say that you want to join a certain casino but would prefer to keep this information from someone else who has access to your account. Alternatively, you may simply want to keep this information away from your bank and gamble with some level of secrecy. In this case, performing a traditional bank transfer accomplishes the opposite of your goal.
However, making cryptocurrency payments means that there are no records of your transactions with any intermediary, and your transaction is only available on a block on the blockchain. Thanks to the anonymization of addresses on many blockchains, it will not be easy to identify which transaction on the blockchain was yours.
In short, when paying with cryptocurrencies, it’s not so much about keeping your information confidential but about being discreet and choosing who can know about your transactions.
- Cryptocurrencies attract new customers
Despite the many skeptics who do not believe in cryptocurrencies, many people are certain that they represent the future of global currency. Any business that allows its customers to pay or withdraw in cryptocurrencies opens its doors to all the cryptocurrency believers and supporters.
- Can cryptocurrency payment options help distinguish companies?
It’s hard to predict where cryptocurrencies will be in the future, but they seem like they are here to stay for now. One way a business can distinguish itself from its competitors and stay ahead of the curve is by embracing new technology. In that sense, by embracing and accepting cryptocurrency payments, a business can distinguish itself from its competitors, especially those that do not accept cryptocurrency payments.
Conclusion
As you may have seen, there is a lot to be gained both for businesses and customers if they chose to pay for goods and services using cryptocurrencies. Of course, you should always do your research and stay updated on cryptocurrency news, so you always stay updated on any new changes that could affect you.
