Despite the growing number of payment services offering a variety of practical tools and payment methods, adding cryptocurrency settlements to them provides many benefits for both buyers and sellers. In this article, we examined the reasons for using crypto payments in 2019…
Reasons to use cryptocurrency next year
There are many universal virtual currencies that can be used as private bank accounts and cards for any transaction. With their help, you can quickly and easily make a calculation, while maintaining confidentiality, as well as save on commissions..
Not so long ago, cash, financial institutions, created generous incentives for those who decided to use funds in the institutional treasury reigned supreme. Today, when using bank accounts of all types, debit and credit cards, we are faced with various fees and other obligatory payments. In fact, this money is wasted, does not bring any benefit…
Banks are becoming more and more inventive in this regard. There are commissions and fees for:
- use of plastic cards;
- ATM transactions,
- checking account;
- issuance of an additional check;
- transfer and refund of funds;
- international operations;
- inaction and more.
What are the uses for CryptoCurrencies?
In most cases, using a cryptocurrency account in the form of a digital wallet is completely free (excluding transaction fees), unless you want to purchase hardware storage or a dedicated card. Of course, there are some services that use specialized storage services such as Bitpay and Coinpayments, but they charge no more than 1% of the payment amount.
Territorial boundaries do not matter when using cryptocurrencies. They allow instant and cost-effective transfers around the world with long waiting times, additional fees and any restrictions. All that is needed is an internet-connected device, such as a mobile phone. Thus, even those who do not have access to a bank branch, get an alternative solution with which they can send, receive, store funds, make purchases and do business..
While using this method of using the increased level of security, you can access without confirmation, bank account, credit cards and even a personal computer..
Banks, credit institutions, retail merchants, service providers receive and store too much personal and financial information about their customers. These include name, address, passport details, investments, account balances, credit rating, line of credit, history, as well as all the transactions that we do and buy, who we contact, when, where, and so on. With traditional financial institutions and fiat..
Alternative cryptocurrency payments that limit transaction volume to prime numbers, also known as wallet addresses and confirmation transfers. An operator handling payments as an agent, acting as a third party, usually requires, and in the case of physical goods delivery, an address. However, the rest of the information will remain confidential. Although the design of analysis methods allows tracking the movement of cryptocurrency transactions and determining the geographical location, and sometimes the identity of the payer, it requires a lot of effort or the disclosure of data by the user himself..
This problem is usually faced by the owners of the so-called «dirty» coins previously involved in illegal transactions, the movement was monitored by law enforcement agencies or other organizations. At the same time, the buyer does not even know about their history, but because of this, he has difficulties when working. For example, some crypto-exchanges and operators form blacklists where they add addressed coins, preventing their circulation on their platforms or blocking funds…
The new owner can’t prove their innocence to the dark past of the funds. However, avoid such situations and situations solve problems owners similar assets help special services «cleaning» cryptocurrencies such as this site. The principle of its operation consists in mixing coins, after which it is impossible to track their further movement, with a subsequent return the user is actually new coins. The technology is quite simple and similar methods use anonymous virtual currencies, for example, Monero.
The cleaning procedure takes place instantly, but if you wish, you can order a delay in the transfer to a new address up to 3 days, as well as increase the number of transactions and address addresses. In this case, the user independently sets the size of the commission. Service helps owners of bitcoin, litecoin and soon there will be a service cleanse ethereum.
Now it has become easier than ever to accept cryptocurrency online. Some e-commerce website has already added such a payment method. Vendors can use WordPress plugins such as Mycryptocheckout for this purpose. Setting up crypto payments is very simple and fast, and transaction fees are 60-70% lower compared to transfers in fiat.
There are also services that allow customers to pay with dozens of cryptocurrencies and freely convert them.. For example, Shapeshift is integrated into several payment systems and various crypto wallets..
Due to the lack of legislative regulation. In Russia, this method of payment is not yet so widespread. We will return to this later..
With remote purchases, virtual currency is more like cash, since after sending, the funds can be returned only by contacting the seller directly. This first exploits the possibility of fraud when the buyer has already used the product or even damaged it and asks for a refund.
Mobile payments are becoming more and more popular. It is very convenient to use a smartphone instead of a credit card. This is possible thanks to Android Pay and Samsung Pay applications, Mastercard Paypass and Visa Paywave payment systems with short-range wireless data transmission (NFC) technology and a POS terminal..
However, they suffer from the same security concerns as when using wire transfer methods. All fiat mobile systems that are convenient today store information about credit cards, including financial and other data of the owner. In addition to the phone, this information also gets into the network with each calculation..
Cryptocurrency is a safer use of electronic money..
One of the most successful cryptocurrency payment gateways Bitpay, monthly processes about 250 thousand rubles. transactions, and the annual transaction volume achievements $ 1 billion. Coinpayments already serves millions 200 clients and recently started working with Bittorrent, giving 100 million users of the service the ability to pay with Bitcoin and altcoins. Coingate cooperates with 50 thousand rubles. merchants and processed thousands of crypto payments, and Utrust partnered with Payrexx with its 10,000 European merchants.
The integration and strengthening of links between cryptocurrency and fiat payment services also continues. This market is expected to grow by 50% in the next two years..
According to the bitinfocharts.com service, about 20 million people currently own cryptocurrency. Most people have heard of Bitcoin. A study by the Cambridge Center for Alternative Finance last year found that 40% of consumers would like to be able to use BTC to pay for purchases..
In countries with unstable fiat currencies, such as Turkey, Venezuela, Brazil, Australia and South Africa, there are quite a large number of cryptocurrency users. According to a September HiveEx poll, 80% of Australians would like to use virtual currency for their daily purchases. Businessmen in Eastern Europe and smaller Western European cities are also protected to add bitcoin to their payment method.
Cryptocurrency as money
Nowadays, almost everything can be bought with cryptocurrency: houses, apartments, boats, cars, clothing, electronics, health and pet products, food, wine, accessories, plane tickets, vacations, tools, as well as various services..
Apart from the most obvious purchases, you can pay with virtual currency:
- a photo session, services of a consulting or marketing agency in Moscow, training at a driving school in Kazan, creation and promotion of a website or mobile application in Ufa, a tattoo in Chelyabinsk, etc. in many other cities of Russia;
- Mercedes-Benz or BMW in California, Rolex in Europe or rent an office in Miami;
- a Thai or Indian restaurant in Montreal or pancakes in Aruba;
- visit to the Cerro Negro volcano in Nicaragua.
For the first half of 2019, the Intercontinental Exchange and Nasdaq planned to launch new bitcoin futures, in February the SEC is to announce the final decision regarding the submitted applications for bitcoin ETFs. These events will give a strong impetus to the growth of the crypto market and may reverse the downtrend of 2018..
In the opinion Viktor Argonov, expert EXANTE, despite a serious drop in 2018, the year ahead is encouraging. He says there are several versions of the recent market crash.. According to one of them, the fall of bitcoin to $ 3500 by this result of manipulation by large players who want to buy as cheaply as possible. If the version is correct, then the collapse should be followed by growth, beneficial to manipulators..
But even if this is not the case, for the first time since January 2015, the 14-week relative strength index (RSI) was below 30. The very fact of oversold is not yet a point of reaching the bottom, but draws attention. Formally, the signal to buy in the market will be the return of the index to the area above 30. Bitcoin will be followed by all other coins..
It is very likely that many investors are now waiting for the right moment to enter the market. And not only large institutional platforms, especially for which new reliable private platforms have been developed..
Political factors also work in favor of the crypto market. If in the past years over Serious financial circles entered the market.
We also recommend that you learn about the real possibilities of blockchain technology, rational areas of its integration and business areas where it is really necessary..
text: Ivan Malichenko, photo: Unsplash, nxtalpha, external-preview.redd.it
The 6 WORST Cryptocurrency Investing Mistakes to Avoid