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.
скрипт bitcoin · Bitcoins are perfectly fungible, they are divided and combined seamlessly in your account.bitcoin skrill bitcoin conveyor bitcoin википедия майнер bitcoin арестован bitcoin bitcoin minecraft bitcoin golden bitcoin вывести пузырь bitcoin ethereum обмен
legal bitcoin
bitcoin wmx life bitcoin bitcoin доходность bitcoin ключи mmm bitcoin community bitcoin bitcoin сети ico bitcoin konvert bitcoin cryptocurrency bitcoin clicker сбербанк bitcoin яндекс bitcoin
bitcoin 5 reindex bitcoin So, Bitcoin can be thought of as a rare digital commodity that has unique attributes. Although it has no industrial use, it is scarce, durable, portable, divisible, verifiable, storable, fungible, salable, and recognized across borders, and therefore has the properties of money. Like all 'potential' money, though, it needs sustained demand to have value.Image courtesy: QuoraThere are limited options for Litecoin cloud mining contracts. If nothing on the list below meets your needs, you can buy Bitcoin cloud mining contracts (listed above) and simply convert the bitcoins you earn to litecoin.проверить bitcoin tails bitcoin bitcoin clock ethereum валюта code bitcoin
bitcoin cap исходники bitcoin deep bitcoin bitcoin count bitcoin основы tether clockworkmod monero proxy удвоить bitcoin monero сложность bitcoin заработок foto bitcoin testnet bitcoin amazon bitcoin ethereum supernova bitcoin 5 antminer bitcoin ethereum crane инвестирование bitcoin japan bitcoin statistics bitcoin rate bitcoin
работа bitcoin ethereum programming bitcoin free bitcoin conf change bitcoin bitcoin vps bitcoin live ethereum faucets bitcoin news
trade bitcoin ethereum install ethereum получить bitcoin gold
bitcoin com курс bitcoin bitcoin вклады escrow bitcoin bitcoin capital scrypt bitcoin 1 ethereum fields bitcoin bitcoin принимаем bitcoin оборот bitcoin статистика antminer bitcoin bitcoin compare bitcoin сайт bitcoin завести виталик ethereum пирамида bitcoin бесплатный bitcoin bitcoin заработок trader bitcoin ad bitcoin bitcoin доходность metal bitcoin bitcoin asic ethereum io bitcoin ферма проблемы bitcoin live bitcoin bitcoin avalon bitcoin стоимость testnet bitcoin
rotator bitcoin How long it takes for a developer to finish the smart contract and token can vary depending on what you require. For a general estimate, I would allow 2 weeks (working Monday-Friday, 9am-5pm). That’s a total of $8,000 if you were paying $100/hour!bitcoin legal краны monero
ethereum contracts bitcoin investment litecoin bitcoin monero ico покупка bitcoin зебра bitcoin
to bitcoin A mining pool is a way for bitcoin miners to work together for a better chance at finding a bitcoin block. All the miners ‘pool’ their hash rate together so that they hit new blocks more frequently. If a mining pool finds a block, they distribute the bitcoin reward equally to all miners based on their contribution to the pools hash rate. Mining pools let smaller miners earn bitcoin without ever finding a block themselves. Most mining pools have a small fee of 1-2% for hosting the pool.Why We Believe Bitcoin Satisfies Assurance 3:In late August 2012, an operation titled Bitcoin Savings and Trust was shut down by the owner, leaving around US$5.6 million in bitcoin-based debts; this led to allegations that the operation was a Ponzi scheme. In September 2012, the U.S. Securities and Exchange Commission had reportedly started an investigation on the case.flypool monero bitcoin banks андроид bitcoin обменник bitcoin bitcoin аналитика доходность bitcoin ютуб bitcoin new cryptocurrency bitcoin ethereum txid ethereum bitcoin сеть биткоин bitcoin bitcoin cny bitcoin продам bitcoin matrix carding bitcoin bitcoin msigna bitcoin transaction bitcoin 100 bitcoin spin bitcoin adress weather bitcoin bitcoin магазины ethereum os bitcoin транзакции parity ethereum cryptocurrency top майнить monero
bitcoin mmm free bitcoin 2x bitcoin
bitcoin 2010 monero gui bitcoin oil coinder bitcoin почему bitcoin bitcoin greenaddress bitcoin стоимость p2pool ethereum магазины bitcoin программа ethereum genesis bitcoin tp tether mail bitcoin Ethereum has Proof-of-Work (PoW) miningbitcoin tx ethereum price bitcoin maker bitcoin проверить clame bitcoin
bitcoin сигналы ru bitcoin bitcoin crane bitcoin joker bitcoin trinity bitcoin клиент x bitcoin 99 bitcoin ninjatrader bitcoin bitcoin gift bitcoin команды
nanopool ethereum bitcoin site bitcoin проблемы ethereum node ethereum client aliexpress bitcoin bitcoin mixer bitcoin это форк bitcoin bitcoin global bitcoin xt bitcoin capitalization json bitcoin siiz bitcoin bitcoin tx steam bitcoin monero github transaction bitcoin currency bitcoin blogspot bitcoin bitcoin обозначение ethereum кошельки fields bitcoin
форумы bitcoin alpha bitcoin ninjatrader bitcoin
all cryptocurrency bitcoin forums порт bitcoin wikileaks bitcoin monero майнинг форекс bitcoin bitcoin 99 bitcoin покупка nubits cryptocurrency bitcoin qazanmaq
bitcoin начало
калькулятор monero bitcoin автоматически bitcoin gift group bitcoin bitcointalk bitcoin доходность ethereum
шахты bitcoin zcash bitcoin bitcoin json
эпоха ethereum 100 bitcoin A related worry is double-spending. If a bad actor could spend some bitcoin, then spend it again, confidence in the currency's value would quickly evaporate. To achieve a double-spend the bad actor would need to make up 51% of the mining power of Bitcoin. The larger the Bitcoin network grows the less realistic this becomes as the computing power needed would be astronomical and extremely expensive.polkadot cadaver bitcoin рухнул bitcoin win видео bitcoin mine monero dorks bitcoin bitcoin стоимость
cryptocurrency gold ethereum btc bitcoin миллионеры windows bitcoin bitcoin advcash ethereum swarm кредит bitcoin
bitcoin пирамиды tether кошелек
Crypto makes transactions with people on the other side of the planet as seamless as paying with cash at your local grocery store.bitcoin today Read more about Investing Online.bitcoin land сложность bitcoin 0 bitcoin foto bitcoin майнер monero deep bitcoin bitcoin waves make bitcoin ethereum casper ethereum vk 5 bitcoin
bitcoin википедия arbitrage cryptocurrency rx470 monero bestexchange bitcoin 4000 bitcoin
ethereum contract bitcoin pool ethereum swarm bitcoin scripting bitcoin auto скрипт bitcoin форки ethereum bitcoin poker fun bitcoin bitcoin playstation bitcoin график earnings bitcoin фри bitcoin курс tether bitcoin перевод токен bitcoin all bitcoin
bitcoin make q bitcoin сбор bitcoin
ethereum хардфорк bitcoin ru bitcoin masters bitcoin crypto программа bitcoin tether bitcointalk
транзакции monero pro100business bitcoin bitcoin bcc bitcoin loan
основатель ethereum bitcoin yen bitcoin сети
polkadot cadaver падение ethereum серфинг bitcoin ethereum проекты bitcoin бесплатный bitcoin neteller delphi bitcoin обменники bitcoin bitcoin картинки bitcoin friday polkadot stingray coffee bitcoin bitcoin elena bitcoin grant bitcoin co сколько bitcoin roulette bitcoin bitcoin alliance пример bitcoin tokens ethereum bitcoin boom приложение tether обменник ethereum the ethereum hd7850 monero bitcoin yen ethereum foundation
bitcoin сложность
bitcoin авито ethereum swarm ann monero nanopool ethereum bitcoin metal bitcoin protocol bitcoin pdf
bitcoin комиссия Medium of Exchangebitcoin отзывы bitcoin config sgminer monero bitcoin avalon arbitrage cryptocurrency пул monero cryptocurrency faucet новости ethereum bitcoin pdf
london bitcoin транзакции ethereum
bitcoin demo icons bitcoin bitcoin cloud bitcoin flapper bitcoin приложение bitcoin zone порт bitcoin ethereum exchange monero calculator xapo bitcoin ethereum mist jax bitcoin tether верификация
ninjatrader bitcoin
weekend bitcoin dark bitcoin конференция bitcoin значок bitcoin алгоритм monero ethereum info earning bitcoin ethereum web3
адрес ethereum cold bitcoin tether валюта bitcoin plugin bitcoin formula история ethereum я bitcoin рост bitcoin ethereum клиент bitcoin generate down investment strategy it is advisable to decide beforehand how muchWhat is Litecoin: SHA-256.roll bitcoin
bitcoin safe раздача bitcoin bitcoin установка сбор bitcoin bitcoin бизнес claim bitcoin bitcoin ledger monero xmr bitcoin книга bitcoin ios amazon bitcoin bitcoin transactions donate bitcoin bitcoin com bitcoin акции tether пополнить ethereum токены запросы bitcoin source bitcoin bitcoin goldmine adbc bitcoin
bitcoin mastercard bitcoin de bitcoin cryptocurrency ethereum pow карты bitcoin работа bitcoin
bitcoin tails monero fr bitcoin динамика puzzle bitcoin
hacking bitcoin why cryptocurrency bitcoin игры книга bitcoin collector bitcoin обмен tether ферма ethereum mine monero bitcoin презентация bitcoin dat cudaminer bitcoin bitcoin bow ocean bitcoin перспективы bitcoin ethereum price
bitcoin crash bitcoin 2017 форк ethereum abi ethereum bitcoin рухнул
bitcoin registration bitcoin stellar ethereum dag bitcoin parser cryptocurrency charts компьютер bitcoin bitcoin sweeper blocks bitcoin сколько bitcoin
крах bitcoin bux bitcoin bitcoin калькулятор бесплатные bitcoin bitcoin loan bitcoin online alpha bitcoin bitcoin bloomberg cryptocurrency prices bitcoin etherium bitcoin халява explorer ethereum основатель bitcoin bitcoin vip 5 bitcoin bitcoin sign bitcoinwisdom ethereum bitcoin spend
ethereum telegram faucet ethereum bitcoin poloniex bitcoin protocol алгоритм bitcoin
монеты bitcoin
bitcoin sportsbook dark bitcoin шрифт bitcoin bitcoin аналитика difficulty bitcoin bitcoin mine
anomayzer bitcoin bitcoin скрипт bitcoin сбор bitcoin чат bitcoin биржа fake bitcoin monero usd ethereum покупка ethereum биткоин 33 bitcoin добыча bitcoin тинькофф bitcoin скачать bitcoin bitcoin заработка вики bitcoin 50 bitcoin bitcoin block
Contrary to popular belief, bitcoin is in fact backed by something. It is backed by the only thing that backs any form of money: the credibility of its monetary properties. Money is not a collective hallucination nor merely a belief system. Over the course of history, various mediums have emerged as money, and each time, it has not just been by coincidence. Goods that emerge as money possess unique properties that differentiate them from other market goods. While The Bitcoin Standard provides a more full discussion, monetary goods possess unique properties that make them particularly useful as a means of exchange; these properties include scarcity, durability, divisibility, fungibility and portability, among others. With each emergent money, inherent properties of one medium improve upon and obsolete the monetary properties inherent in a pre-existing form of money, and every time a good has monetized, another has demonetized. Essentially, the relative strengths of one monetary medium out-compete that of another, and bitcoin is no different. It represents a technological advancement in the global competition for money; it is the superior successor to gold and the fiat money systems that leveraged gold’s monetary properties.майнер bitcoin bitcoin express ethereum myetherwallet bitcoin гарант ethereum charts 1 monero bitcoin серфинг bitcoin мерчант forum bitcoin стоимость bitcoin ethereum 1070 mikrotik bitcoin bitcoin государство ethereum отзывы exchange bitcoin хабрахабр bitcoin xronos cryptocurrency
pool monero boxbit bitcoin ethereum обмен accepts bitcoin bitcoin apple pirates bitcoin king bitcoin bitcoin etherium blockchain ethereum hash bitcoin
bitcoin oil bitcoin dice ethereum news iota cryptocurrency сайты bitcoin ethereum добыча android tether пицца bitcoin bitcoin frog ethereum телеграмм coin ethereum транзакции bitcoin удвоить bitcoin bitcoin laundering bitcoin разделился ферма ethereum avalon bitcoin
tether gps ethereum описание порт bitcoin global bitcoin
ethereum сложность
difficulty bitcoin bitcoin создатель конец bitcoin магазин bitcoin
circle bitcoin книга bitcoin стратегия bitcoin
bitcoin ebay
tether coinmarketcap cryptocurrency mining bitcoin выиграть
putin bitcoin wired tether grayscale bitcoin
cc bitcoin masternode bitcoin tether майнинг api bitcoin отследить bitcoin zcash bitcoin bitcoin png обсуждение bitcoin
bitcoin автоматический clame bitcoin bitcoin автоматический
bitcoin деньги vector bitcoin fasterclick bitcoin webmoney bitcoin сети bitcoin daily bitcoin bitcoin live ethereum стоимость
captcha bitcoin bitcoin fork
скрипт bitcoin dwarfpool monero bitcoin blockstream bitcoin форки транзакции bitcoin nanopool ethereum 2018 bitcoin micro bitcoin wikileaks bitcoin 1982. International Association for Cryptologic Research (IACR) is formed to advance the use cryptography in the interest of public welfare.They performed a 'hard fork' and split the Ethereum system into two competing systems, Ethereum and Ethereum Classic.code bitcoin
яндекс bitcoin pay bitcoin получение bitcoin homestead ethereum monero address 1 ethereum erc20 ethereum bitcoin loan bitcoin sha256 bitcoin ваучер bitcoin gif bitcoin развитие ethereum script usb bitcoin
payable ethereum bitcoin carding bitcoin сбербанк 6000 bitcoin
bitcoin poloniex x2 bitcoin ethereum cryptocurrency
cryptocurrency gold monero windows
ethereum монета добыча bitcoin bitcoin обозреватель capitalization bitcoin bitcoin multiplier monero стоимость One Bitcoin is divisible down to eight decimal places. There are really 2,099,999,997,690,000 (just over 2 quadrillion) maximum possible atomic units in the bitcoin system.обмен tether bitcoin обналичить bitcoin icons будущее ethereum monero fr bitcoin миксеры bitcoin пул blue bitcoin ethereum coin san bitcoin bitcoin demo
fpga ethereum bitcoin сеть monero обменять agario bitcoin wisdom bitcoin
скачать bitcoin 100 bitcoin short bitcoin bitcoin пополнить
rigname ethereum fx bitcoin bitcoin алгоритм scrypt bitcoin bitcoin fan difficulty ethereum сети ethereum nova bitcoin cryptocurrency bitcoin настройка ethereum shares ethereum конвертер ethereum miners bitcoin nyse продажа bitcoin bitcoin lottery 20 bitcoin курс ethereum bitcoin favicon buying bitcoin bitcoin crypto bitcoin запрет ethereum асик reddit ethereum bitcoin coinmarketcap blockchain ethereum bitcoin графики monero faucet cnbc bitcoin change bitcoin airbit bitcoin ecdsa bitcoin claymore monero bitcoin switzerland bitcoin poloniex bitcoin redex monero gui phoenix bitcoin bitcoin cryptocurrency bitcoin minergate nvidia bitcoin reward bitcoin опционы bitcoin bitcoin fees выводить bitcoin символ bitcoin earnings bitcoin bitcoin hash boxbit bitcoin bitcoin майнинг abi ethereum bitcoin кредит bitcoin проект bank cryptocurrency 6000 bitcoin bitcoin миксеры love bitcoin miningpoolhub monero bitcoin today валюта bitcoin майнинга bitcoin metatrader bitcoin make bitcoin зарабатывать ethereum bitcoin knots bitcoin программирование bitcoin account bitcoin seed monero hardware
bitcoin matrix bitcoin explorer
game bitcoin bitcoin address monero xeon king bitcoin boom bitcoin
cryptocurrency market bitcoin spinner importprivkey bitcoin bitcoin mastercard tor bitcoin bitcoin de ethereum майнить bitcoin litecoin bitcoin андроид nodes bitcoin dwarfpool monero doge bitcoin monero logo adc bitcoin биржа monero ethereum network ethereum blockchain bitcoin network ethereum address bitcoin traffic
project ethereum bitcoin okpay claymore monero vector bitcoin форум bitcoin bitcoin python bag bitcoin
платформа bitcoin ethereum видеокарты ethereum stratum simple bitcoin
bitcoin принцип
poloniex monero
bitcoin переводчик fork ethereum bitcoin generate bitcoin lion bitcoin sportsbook
bitcoin pool bitcoin сети rigname ethereum ethereum курсы ethereum кран dogecoin bitcoin ethereum dag bitcoin traffic exchange bitcoin Message callsbitcoin heist bitcoin location crococoin bitcoin monero биржи ethereum алгоритм bitcoin air download bitcoin bitcoin apple bitcoin cloud
bitcoin faucet количество bitcoin
ethereum os cryptocurrency logo капитализация ethereum iota cryptocurrency bitcoin protocol bitcoin map Your friend can’t mess with this agreement. Smart contracts are encrypted and kept in thousands of ledgers all over the world, called the blockchain.bitcoin trinity bitcoin dogecoin
bitcoin safe
ethereum pools bitcoin биржи time bitcoin ethereum network monero usd kong bitcoin topfan bitcoin xbt bitcoin auto bitcoin capitalization bitcoin майнинг tether продать monero korbit bitcoin tether tools bitcoin paypal bitcoin grant bitcoin зарабатывать ethereum frontier bitcoin 4 шифрование bitcoin