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Why vendors are accepting Bitcoins? Will it take over fiat currencies?

Nov 05, 2017 Posted /  10313 Views

Why vendors are accepting Bitcoins? Will it take over fiat currencies?

A widespread misunderstanding amongst Bitcoin critics and even parts of the crypto community is that Bitcoin has scarce or no purpose beyond speculation. Certainly, Bitcoin is a speculative asset, but it is much more than that. The increasing number of vendors have begun accepting Bitcoin as payment to capitalize on the growing number of people who wish to utilize it as a medium of exchange. Numerous companies and organizations have commenced perceiving cryptocurrencies (bitcoin) as a valid payment option for the goods they sell.

Bitcoin: A major digital revolution

Bitcoin’s journey is a decade old and has been filled with many rise and falls. From just being magic Internet money to a prevalently used and accepted payment system. Despite it's so famous volatility, Bitcoin gives many advantages over the traditional payment methods. The benefits include fewer network fees, maintenance costs, and no charge-backs.The areas where one can use Bitcoin these days ranges from small businesses to multi-billion dollar companies, to shady deep web markets as well. Not only is Bitcoin revolutionary, it is practical. Micro-transactions, pseudonymous payments, and the functionality of multi-signature wallets permitted Bitcoin to make its way to the top with the aid of services like Coinbase and Bitpay that offered merchants an easy solution for accepting BTC payments.

Can fiat currency get replaced with crypto money?

Fiat currencies will continue to dominate the economy until the governments of various countries are powerful to enforce the laws. Fiat currencies will be prevalent until the time when some other currency like Bitcoin replaces it as well a sit proves itself powerful enough. If Bitcoin fails to meet the demands of the modern world, it will be proved that Fiat currencies are the unconquerable payment methods which make the world go round.

Bitcoin may become an inevitable part of the economy, but the constrained supply will become a major hurdle in the process of bitcoin dethroning the traditional/ native/local currencies.

What made the vendors accept Bitcoins?

Assembled on the idea that money is essentially a medium for translating value, Bitcoin uses cryptography for its creation as well as transactions, rather than any central authority. Bitcoins often is used for games and even linked to illicit activities every now and then, have been adopted by many vendors in addition to traditional forms of payment. Microsoft, CheapAir and other big companies have already jumped on the Bitcoin bandwagon with many more to follow. Honestly, various Bitcoin accepting vendors don't accept Bitcoin directly in fact they work through commissioned intermediaries, like Paymium and Coinbase thus converting Bitcoin receipts to fiat currency immediately (often in U.S. dollars). It is the initial period for bitcoin to emerge as the payment method but nonetheless, it is indeed impressive.


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Tags: bitcoin crypto money Bitcoin wallet accepting vendors bitcoin process

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