Bitcoin is a new form of money: the first electronic currency, which does not depend on any central authority such as the bank or the government. Started as an open source project in 2009, it has become the most accepted virtual currency in the world. The premium value of bitcoins lays in the combination of its monetary use and encrypted protocol which enables quick and secure peer-to-peer online transactions.
Bitcoins can be acquired for any existing currency like dollars, euros, yens etc., yet its exchange rate is not fixed and tends to fluctuate based on supply and demand. Still, due to its complete transparency and ease of use merchants and clients commonly choose to work with this digital cash for exchanging goods and services.
Here are a few outstanding benefits for merchants who accept bitcoins as a form of payment.
Instant payments, no need for a merchant account, very low fees
Bitcoins can be transferred directly from person to person via internet avoiding the intervention of any third party such as the bank or a credit card company. This significantly reduces transaction fees and administrative costs. Most payments can be handled without extra charges or for a negligently low sum worth of several pennies. These fees are charged primarily to prevent users from overloading the network by sending many low-amount transactions. The money is drawn from a user’s digital wallet – an application installed on a PC or a smartphone.
Client Protection: No Personal Information Revealed
Customers who choose to pay in bitcoins are not enforced to reveal their personal information such as credit card number or a street address. Biton guarantees a high level of anonymousness, which has enormous benefits for the buyer such as protection against identity theft. Another advantage is customer security from unnoticed, hidden charges, which are made possible when using traditional forms of online payment. With bitcoins no sensitive information is tied to the transaction which enables a totally secure financial processing.
Low Risk for Merchants: Irreversible Transactions, No Fraudulent Chargebacks.
One of the biggest advantages for merchants accepting bitcoins is that transactions are secure and irreversible for both sides. Unlike with credit cards or online banking networks, paying in bitcoins does not allow buyers claim their money back, which prevents unpleasant issues, such as fraudulent chargebacks, from happening. Once the payment has been made the merchant can safely ship the product or provide the service avoiding the risk of not getting paid. Merchants can easily move into other competitive markets where credit cards cannot be used or fraud rates are unacceptably high.
With over 100,000 users around the world, bitcoin is the most popular digital money with a growing consumer base. This peer-to-peer payment network is beneficial for merchants and buyers as one for the possibility of processing quick and secure transactions. Since the system is not controlled by a single authority but by all its users around the world, no one is empowered to manipulate it for personal interests. This unique combination of security, convenience and transparency makes Bitcoin what it is today: the most successful decentralized financial system.