Bitcoin is an exceedingly famous cryptocurrency. The market value of bitcoin in the entire cryptocurrency market is the highest. On the other hand, the second leading cryptocurrency, ethereum, is not close to bitcoin in terms of market cap and store value.
Bitcoin is a primary cryptocurrency that underlies some prominent technologies. Some of the prominent technologies present in the bitcoin complex are peer-to-peer networks and a blockchain or a public distributed ledger.
Blockchain of bitcoin complex stores information regarding bitcoin transactions, and blockchain is the utmost structured database of all time. Bitcoin’s peer-to-peer network is one of the good reasons why bitcoin can achieve decentralization. Decentralization aspects of bitcoin make it different as a payment method from the traditional banking system.
Bitcoin as a payment method offers you great strong stouts; all the more several companies are now accepting bitcoin payments. Bitcoin trading is correspondingly very profitable. There are websites like Bitcoin Billionaire App which can help you in getting profitable results in your bitcoin expedition. Since bitcoin is a payment method just like credit cards and debit cards, it speculates that credit card and bitcoin payments are the same. Let’s find out whether bitcoin payments are similar to a credit or are different from each other.
What do you mean by Bitcoin Payment Service?
Undeniably bitcoin is a speculative investment asset, and it is helping lots of people in earning money. Still, Satoshi Nakamoto, the so-called inventor of bitcoin, invented bitcoin as digital cash. Therefore, people did not use bitcoin as a payment method for a very long time. However, after the arrival of bitcoin in the mainstream marketplace, companies started to acknowledge the potential of bitcoin as a payment method.
Bitcoin payment service allows businesses and companies to accept bitcoin as a payment method. Suppose you can now pay in bitcoin if you want to buy goods or services from an explicit business. Bitcoin and credit services serve a similar purpose, but credit cards and bitcoin dynamics are exceedingly different.
Bitcoin Transactions Vs. Credit Transactions
In both Bitcoin and credit card transactions, a set of validators verifies every transaction. Thus, the system works behind every transaction. Verifying transactions in the bitcoin complex is bitcoin mining which is a decentralized process.
In the case of credit card payments, a set of validators and service providers transmit and verify the transaction details with an exceeding extent of security. In addition, credit card services include ample mediators and third parties in between transactions.
However, in the bitcoin complex, the mere middlemen facilitating transactions between the sender and receiver are bitcoin. Every transaction of the bitcoin complex is present on a public distributed ledger or the blockchain. Although bitcoin is a virtual currency, you can even process bitcoin transactions at an online store.
Mechanism of bitcoin transactions
The bitcoin payment services render you tons of methods for businesses accepting bitcoin payments. From accepting donations to integrating bitcoin as a payment method on an eCommerce website, you can do it all.
Bitcoin transactions are pretty simple. You can scan the QR code of a business with your bitcoin wallet. After scanning the QR code of a business, you can insert the amount of bitcoin you wish to transfer and click on the send button. Thus, the transaction fees of the bitcoin complex are meager as it does not incur banking fees. All the more, there are no middlemen and third parties in between the transactions.
Once you click on the send button, bitcoin miners start to contribute their computing power. Bitcoin miners solve a complicated math puzzle to verify a set of transactions, and every miner gets a time of 10 minutes to solve this math puzzle.
What are the benefits of Bitcoin payments?
There are great perks of accepting bitcoin as a payment method. Some of these perks include anonymity while accepting and sending transactions. In addition, the flexibility of payments means you can send any amount of bitcoin units at any time.
The benefits of accepting bitcoin as payment include fewer transaction fees. All the more, every transaction of the bitcoin complex is irreversible, which reduces the chances of fraud and chargeback. Moreover, processing international transactions through the bitcoin complex is correspondingly very easy.
In a nutshell, yes, bitcoin payments are different from the credit card service.