How Bitcoin is Different from Other Payment Methods

You know many payment methods, such as Google Pay, Phone Pay, PayPal, Banks, or other financial institutions, but what makes bitcoin different from these payment methods? These payment methods provide many facilities like instant transactions, customer support, and advanced features.

Still, they are working as a middle man, and on the other hand, bitcoin is a currency like a fiat currency but in digital form. What features make bitcoin different from other payment methods will be discussed in this article. So without wasting time, Let’s understand the difference.

Why Does Bitcoin Make A Difference?

1. Very Low Transactional Fees: The first feature of bitcoin that differentiates bitcoin from other payment methods is meager transactional fees. Other payment methods work as middlemen between receiver and sender and charge high fees, especially global payment. For example, suppose you will use a credit card payment gateway.

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In that case, you have to pay a 3 to 5 percent commission on each transaction, and these financial institutions like PayPal are also a costly payment method. If you want to send money abroad through the bank, it will charge high fees because of currency conversion, but it is not in bitcoin. Bitcoin’s transaction fees are nominal or deficient transactional fees that are convenient for everyone.

2. Most Secure: Other payment methods work as a centralized system that management and a group of people can control. A centralized system can get hacked because all the data is available in one place, and if the primary point gets hacked, you can lose money.

Bitcoin is most secure because it is a decentralized system that means no one can control bitcoin, such as the government, banks, the president of the country, financial institutions, and even the founder of bitcoin.

After all, many computers are working behind the bitcoin processing every time. If a few computers get hacked, it will not affect the bitcoin processing, and if you want to hack bitcoin, you have to hack all the computers working behind it worldwide. So bitcoin is unstoppable and impossible to hack.

3. Privacy: When you open a new bank account, then you have to fill the form with your personal information, or when you sign up for a new payment gateway, then you also have to fill in your details that are critical, which means there is no privacy.

Every staff member of a bank or institution or the company can see your personal information and check your transactions history, spending, and other things, but it never happened in bitcoin. You do not need to fill in your details, and no one can track your spending and transactions.

You are anonymous in bitcoin. Of course, the government can get your details and can track your spending. But bitcoin provides you 100% privacy because you can use multiple wallets for transactions. Click here for more information cryptoengine app.

4. You are the owner: In other payment methods, all the control is in the hands of the company’s staff. They can modify your account, and they can change your details, they can make your balance zero, they can suspend or close your account. You cannot control your account, and if you do not obey their rules, they will take strict actions against your account or close your account in most cases.

But in bitcoin, you are the owner of your account, and you can manage your bitcoins; you can transfer and receive bitcoin without permission of anyone, you can close your wallet, or create your new wallet. That is why bitcoin is different from other payment methods.

5. Global Transactions: The most prominent feature that differentiates bitcoin from other payment methods is international transactions. Bitcoin is a global digital currency and is widely accepted all over the world. There is no change in another country, which means If you send one bitcoin to a person outside the country, you will receive one because it is not like a fiat currency (different in various countries). Other payment methods charge high fees for the global transaction, but bitcoin’s prices are meager because it is already a global currency.

6. No Tax: Tax is the biggest problem for sellers and buyers because when you buy the product from an eCommerce store, the price will increase by including tax and shipping charges, and it is an awful experience for buyers. But there is no tax system in bitcoin because bitcoin is separate, which means the government has no control over bitcoin. On the other hand, other payment methods include tax because they are centralized systems and work under government rules and regulations.

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