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Bitcoin: How bitcoin works vs. other payment methods

2019-12-24 13:03:31

Today's post is about Bitcoin, but we focus on talking about Bitcoin Comparison with other payment methods

  Performing some comparison of bitcoin with other payment methods makes us present some very important characteristics, since each platform presents totally different forms and is what marks a trend today especially in a product that is moving continuously, as is Bitcoin .

Difference between bitcoin and other payment methods?

  Below we make a list where you can visualize certain important elements about Bitcoin and the difference in relation to other payment methods:

  • Protection against inflation: inflation is not seen as a problem, since the less there are more there will be demand and therefore the price will rise, as it presents a previously established supply with a limit.
  • Opportunity to execute huge transactions: it offers us the possibility of making transfers at the hands of a financial entity, very quickly and easily, and best of all, large amounts of assets can be managed.
  • International transactions: it offers us the ability to execute transactions worldwide, as there is the option to send funds quickly, easily and effectively.
  • It offers security: Security is quite high, since it has sufficient resistance in terms of theft or loss.
  • Bitcoin is transferable and portable: it has the ability to be sent, in fact it can be sent to everyone in a few seconds, we also have the option to load it since this presents us with facilities in terms of the acquisition of goods and services.
  • The transactions are private: privacy is a fundamental issue and with Bitcoin this is reflected, because, the identity is not directly linked to the account where the funds are deposited.
  • It is durable: these types of coins simply do not disappear or tend to be damaged for a long time.
  • Bitcoin is scalable: this is a currency that has the ability to support thousands and millions of transactions per second, and the possibility of growth increases.
  • It has the ability to execute micropayments: there is the possibility of transferring certain small amounts as tips, so that it is fast and effective, to a certain person or entity.
  • It is divisible: it is good to know that bitcoin is divisible, because it can be split into several small parts.
  • It is fungible: it can serve as an exchange for goods, services and even other currencies whose value is proportional to bitcoin.
  • It is decentralized: this is perhaps one of the most interesting aspects, since it is not controlled by any government or bank, this means that there is no possibility of loss, devaluation or freezing of funds.

Features related to the comparison of bitcoin with other payment methods:

 Below we discuss 7 characteristics, for which Bitcoin presents favorable and different aspects when executing transactions.

  •  There is the possibility of making international transfers with fiat money but they are tedious, because, this includes a series of unfavorable aspects, since it presents high costs, paperwork and above all it takes us valuable time.
  • It presents a huge difference in relation to PayPal, since this is only a payment method, which is only used by some currencies, where the dollar is included.
  • It is important to keep in mind that there is a possibility that there is a minimum risk of theft or loss, since there is no currency or payment method that is 100% completely secure, but in one way or another bitcoin, it has the possibility of being included in the Blockchain technology, which works with private key, this makes the possibility of theft or loss quite low, this if we make a comparison of bitcoin with other payment methods
  • Gold is presented as an element used in paper money, which makes it portable, although this is not manageable like the other methods.
  • It is good to know that PayPal is only a payment platform, therefore it is not fungible and much less divisible.
  • Today bitcoin has certain scalability problems, but this is not an impediment, since there are currently a good number of developers responsible for solving these problems, who also have the possibility to discuss the proposals about details to consider in order to give solution.
  • It is good to know that bitcoin is pseudo-anonymous, this means that it has a public address that is linked to a certain personal document.

 We hope that our comparison of bitcoin with other payment methods encourages you to make transactions, since there is no doubt that Bitcoin is a fairly secure, broad and effective platform.

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