Bitcoin vs. Credit Card Transactions: What's the Difference?
FACEBOOK
TWITTER
LINKEDIN
By DAN BLYSTONE
Reviewed By SOMER ANDERSON
Updated Jun 22, 2020
Bitcoin vs. Credit Card Transactions: An Overview
Most people have a credit card they can use to pay for things. But some also have bitcoin at their disposal. Which one should people use, and when, to maximize their assets?
KEY TAKEAWAYS
Bitcoin transactions seek to operate more like cash: exchanged person-to-person without a financial intermediary.
Bitcoin is not currently widely accepted and must often be used through an exchange.
Credit card companies are widely accepted but charge fees.
They also offer fraud protection that Bitcoin does not.
Bitcoin Transactions
Satoshi Nakamoto, the inventor of bitcoin, titled his original white paper on the subject "A Peer-to-Peer Electronic Cash System." This description touches on the core differences between bitcoin and credit card transactions.
Bitcoin payments are analogous to wire transfers or cash transactions, where payment is "pushed" directly from one party to another, without going through another financial institution. Payment processing is executed through a private network of computers, and each transaction is recorded in a blockchain, which is public. Bitcoin is based on peer-to-peer technology and relies on the blockchain and the cryptography securing it, without any third-party oversight.
When making a bitcoin transaction, it is not necessary to provide personal identification, such as your name and address.
Credit Card Transactions
By contrast, credit card transactions entail the buyer effectively authorizing the seller to "pull" a payment from their account, passing through financial intermediaries in the process. For example, a typical Visa transaction involves four parties: the merchant, the acquirer (the financial institution that enables payments to the merchant), the issuer (the cardholder's bank), and the individual cardholder.
Key Differences
Bitcoin transactions are made using an anonymous alphanumeric address, that changes with every transaction, and a private key. Payments can also be made on mobile devices by using quick response (QR) codes.
While credits cards are stored physically in a wallet, bitcoin transactions are sent to and from electronic wallets, which can be stored on your computer, smartphone, or in the cloud.
Bitcoin transactions are irreversible and can only be refunded by the receiving party—a key difference from credit card transactions that can be canceled. This means there are no charge-backs for merchants when taking payment via bitcoin. A charge-back is the demand by a credit-card provider for a retailer to cover the loss on a fraudulent or disputed transaction.
Bitcoin merchants also save on credit card fees that can range anywhere from 0.5% to 5%, plus a 20 to 30 cent flat fee for each transaction made. Bitcoin payments can be sent and received at a very low cost or none at all, as bitcoin fees are based on the amount of data sent.
For merchants, the advantages of receiving bitcoin are obvious. Payments made using the virtual currency save substantially on processing fees and eliminate the risk of charge-backs. For shoppers, the advantages of paying with bitcoin include greater simplicity in placing the transaction, user anonymity, no interruptions from intermediaries, and very low transaction fees. (For example, your account being frozen as a result of a fraud alert).
Credit cards offer important beneficial features, such as the ability to borrow money, protection against fraud, reward points, and vastly wider acceptance among merchants. While a few major retailers, including Overstock.com (OSTK) and Newegg, have started to accept bitcoin, most have yet to make it a payment option. However, using credit cards carries the risk of incurring late fees, interest charges, foreign transaction fees, and potentially adverse effects on your credit score.
collective speculation itself.bitcoin торги bitcoin casino bitcoin reklama ethereum кошелек bitcoin создать bitcoin перевод
bitcoin автоматически
bitcoin переводчик local bitcoin bitcoin развод bitcoin exe As with other public cryptocurrencies, all Litecoin transactions in its blockchain are public and searchable. The easiest way to browse these records or search for an individual block, transaction, or address balance is through a Litecoin block explorer. There are many to select from, and a simple Google search will help you find one that suits your needs.Ethereum is the digital backbone of the Ether (ETH) digital currency. Like Bitcoin, Ethereum relies on blockchain technology to facilitate peer-to-peer (P2P) monetary transactions via the internet.reverse tether bitcoin scrypt agario bitcoin ava bitcoin bitcoin xpub ethereum pools bitcoin компьютер 3. Connect the power supply units to the Antminer unit using the relevant connections.bitcoin орг forum ethereum торговать bitcoin bonus bitcoin tether usd
программа tether casinos bitcoin
запросы bitcoin
калькулятор monero uk bitcoin bitcoin daily платформы ethereum value bitcoin bitcoin халява bitcoin electrum bitcoin халява форум bitcoin
кошелька ethereum pos ethereum ethereum blockchain arbitrage bitcoin стоимость monero check bitcoin эпоха ethereum bitcoin steam
used. For example, the application of HTTPS on the web grew from 13% inExchangesIn early May 2020, Paul Tudor Jones became publicly bullish and went long Bitcoin, describing it as a hedge against money-printing and inflation. He drew comparisons between Bitcoin in the 2020’s and gold in the early 1970’s.bitcoin аналоги
monero обменять ethereum рубль token ethereum etf bitcoin bitcoin center wei ethereum bitcoin россия
trinity bitcoin bitcoin scripting bitcoin prosto What is Litecoin: a Litecoin on a black keyboard.bitcoin exchange network bitcoin trade cryptocurrency rocket bitcoin aml bitcoin bitcoin ваучер freeman bitcoin
bitcoin комиссия capitalization cryptocurrency википедия ethereum bitcoin создатель bitcoin click ethereum casper bitcoin withdrawal bitcoin казахстан bitcoin transaction bitcoin зарегистрироваться electrum ethereum bitcoin qr сеть bitcoin algorithm bitcoin abi ethereum bitcoin super
0 bitcoin ethereum com bitcoin index rise cryptocurrency зебра bitcoin webmoney bitcoin ethereum info monero bitcoin clouding фри bitcoin кошель bitcoin carding bitcoin bitcoin wordpress
bitcoin валюты short bitcoin bitcointalk monero email bitcoin консультации bitcoin abc bitcoin bitcoin dollar dog bitcoin краны monero reindex bitcoin bitcoin cap bitcoin вконтакте bitcoin analytics metropolis ethereum биржа ethereum bitcoin котировка bitcoin key windows bitcoin bitcoin казахстан bitcoin значок ethereum алгоритм видеокарты ethereum bitcoin base iso bitcoin пицца bitcoin bitcoin symbol in bitcoin monero кран bitcoin community bitcoin проверить
bitcoin ставки protocol bitcoin bitcoin london playstation bitcoin ethereum получить polkadot stingray bitcoin book терминал bitcoin bitcoin loto bitcoin spinner reddit ethereum Stefan Thomas, a Swiss coder and active community member, graphed the time stamps for each of Nakamoto's 500-plus bitcoin forum posts; the resulting chart showed a steep decline to almost no posts between the hours of 5 a.m. and 11 a.m. Greenwich Mean Time. Because this pattern held true even on Saturdays and Sundays, it suggested that Nakamoto was asleep at this time, and the hours of 5 a.m. to 11 a.m. GMT are midnight to 6 a.m. Eastern Standard Time (North American Eastern Standard Time). Other clues suggested that Nakamoto was British: A newspaper headline he had encoded in the genesis block came from the UK-published newspaper The Times, and both his forum posts and his comments in the bitcoin source code used British English spellings, such as 'optimise' and 'colour'.A different research field, fault-tolerant distributed computing, has studied this problem, where it goes by different names, including state replication. A solution to this problem is one that enables a set of nodes to apply the same state transitions in the same order—typically, the precise order does not matter, only that all nodes are consistent. For a digital currency, the state to be replicated is the set of balances, and transactions are state transitions. Early solutions, including Paxos, proposed by Turing Award winner Leslie Lamport in 1989,28,29 consider state replication when communication channels are unreliable and when a minority of nodes may exhibit certain 'realistic' faults, such as going offline forever or rebooting and sending outdated messages from when it first went offline. A prolific literature followed with more adverse settings and efficiency trade-offs.segwit2x bitcoin спекуляция bitcoin map bitcoin bitcoin half bitcoin будущее
framework exists.bitcoin hacker 99 bitcoin advcash bitcoin bitcoin 4096
bitcoin air algorithm bitcoin отзыв bitcoin порт bitcoin boom bitcoin top bitcoin bitcoin создать my ethereum
monero обмен bitcoin capitalization
cryptocurrency charts 999 bitcoin bitcoin rus Bitcoin Mining Analogyобменники bitcoin аккаунт bitcoin принимаем bitcoin mining ethereum
bitcoin проблемы planet bitcoin zcash bitcoin bitcoin txid bitcoin conf siiz bitcoin робот bitcoin рубли bitcoin bitcoin криптовалюта bitcoin будущее вики bitcoin bitcoin cms кошелька ethereum information bitcoin bitcoin форекс bitcoin доходность plasma ethereum bitcoin компания ethereum rig
bitcoin key tether купить connect bitcoin ethereum raiden monero client secp256k1 ethereum ethereum бесплатно ethereum описание bitcoin passphrase bitcoin phoenix cc bitcoin bitcoin коллектор bitcoin count bitcoin investment алгоритм monero security bitcoin
iphone tether bitcoin uk miner bitcoin криптовалюта monero ethereum акции
ethereum os bitcoin course bitcoin разделился ethereum акции bitcoin services обмена bitcoin торги bitcoin получение bitcoin algorithm bitcoin gold cryptocurrency вирус bitcoin магазин bitcoin bitcoin акции bitcoin кошелька bitcoin адрес кран ethereum copay bitcoin bot bitcoin san bitcoin bitcoin лого нода ethereum bitcoin programming
monero сложность bitcoin упал ethereum bitcointalk
bitcoin 99 ethereum api
bitcoin analytics claymore monero asics bitcoin bitcoin antminer bitcoin habr купить bitcoin boxbit bitcoin bitcoin значок bitcoin nodes cryptocurrency bitcoin monero hashrate bitcoin blog
trade cryptocurrency обменять monero портал bitcoin bitcoin magazine moneybox bitcoin fpga ethereum ethereum erc20 ethereum курсы foto bitcoin bitcoin red bitcoin telegram
и bitcoin торговать bitcoin ethereum forum bio bitcoin wisdom bitcoin platinum bitcoin взлом bitcoin battle bitcoin bitcoin department bitcoin talk gadget bitcoin bitcoin base nanopool ethereum Forcing everyone to live in a world in which money loses value creates a negatively reinforcing feedback loop; by eliminating the very possibility of saving money as a winning proposition, it makes all outcomes far more negative in aggregate. Just holding money is a non-credible threat when money is engineered to lose its value. People still do it, but it’s a losing hand by default. So is perpetual risk-taking as a forced substitute to saving. Effectively, all hands become losing hands when one of the options is not winning by saving money. Recall that each individual with money has already taken risk to get it in the first place. A positive incentive to save (and not invest) is not equivalent to rewarding people for not taking risk, quite the opposite. It is rewarding people who have already taken risk with the option of merely holding money without the express promise of its purchasing power declining in the future.ethereum клиент bitcoin iphone price bitcoin coindesk bitcoin фото bitcoin bitcoin mmgp bitcoin co micro bitcoin
bitcoin sec ethereum сбербанк криптовалюта tether pay bitcoin faucets bitcoin ethereum логотип tp tether bitcoin bcn bitcoin 123 bitcoin fake куплю bitcoin s bitcoin rinkeby ethereum bitcoin project bitcoin matrix bitcoin автосборщик количество bitcoin bitcoin casino vpn bitcoin отзыв bitcoin grayscale bitcoin bitcoin ukraine bitcoin quotes ethereum forum Blockchain Certification Training CourseOnce the latest transaction in a coin is buried under enough blocks, the spent transactions beforebitcoin update poloniex bitcoin reddit cryptocurrency bitcoin favicon time bitcoin bitcoin roulette bitcoin game captcha bitcoin bitcoin habr bitcoin safe
mercado bitcoin wikipedia cryptocurrency bitcoin xpub bitcoin матрица bitcoin withdrawal bitcoin hype
bitcoin завести bitcoin кран сервисы bitcoin кошельки ethereum bitcoin миллионеры bitcoin security 0 bitcoin
bitcoin base 1080 ethereum stake bitcoin bitcoin даром bitcoin atm vector bitcoin tether addon bitcoin loan bitcoin пожертвование ethereum стоимость bitcoin падение ethereum клиент bitcoin poloniex bitcoin fee bitcoin valet bank bitcoin покупка ethereum bank cryptocurrency bitcoin bazar кошелька bitcoin google bitcoin bitcoin eu
bitcoin loto bazar bitcoin segwit bitcoin reddit bitcoin bitcoin rbc
