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.
qtminer ethereum динамика ethereum bitcoin bazar trade cryptocurrency Digital information can be reproduced relatively easily, so with Bitcoin and other digital currencies, there is a risk that a spender can make a copy of their bitcoin and send it to another party while still holding onto the original.1pay bitcoin fee bitcoin bitcoin help сделки bitcoin bitcoin faucets bitcoin баланс payza bitcoin bitcoin bcn Bitcoin has been criticized for the amount of electricity consumed by mining. As of 2015, The Economist estimated that even if all miners used modern facilities, the combined electricity consumption would be 166.7 megawatts (1.46 terawatt-hours per year). At the end of 2017, the global bitcoin mining activity was estimated to consume between one and four gigawatts of electricity. By 2018, bitcoin was estimated by Joule to use 2.55 GW, while Environmental Science %trump2% Technology estimated bitcoin to consume 3.572 GW (31.29 TWh for the year). In July 2019 BBC reported bitcoin consumes about 7 gigawatts, 0.2% of the global total, or equivalent to that of Switzerland.эфириум ethereum mine monero карты bitcoin bitcoin экспресс autobot bitcoin bitcoin base monero хардфорк bitcoin skrill bitcoin сша cap bitcoin total cryptocurrency эфириум ethereum auto bitcoin ethereum coingecko bitcoin media cryptocurrency ico buy ethereum bitcoin аналоги byzantium ethereum прогноз ethereum токены ethereum
ethereum php
bitcoin roll homestead ethereum ethereum обменять
алгоритмы ethereum bitcoin etf bitcoin казино
difficulty ethereum bitcoin stellar bitcoin алматы bitcoin пул bitcoin get ethereum news market bitcoin обменять ethereum bitcoin lottery знак bitcoin bitcoin видеокарты платформа bitcoin
ethereum php
ethereum ios
история ethereum bitcoin arbitrage nonce bitcoin
теханализ bitcoin bitcoin venezuela сайты bitcoin bitcoin roll dwarfpool monero bitcoin приложения bitcoin банк status bitcoin bitcoin онлайн bitcoin зарегистрироваться bitcoin завести txid ethereum bitcoin котировки
bitcoin favicon
bitcoin rus bitcoin gpu auction bitcoin wifi tether эпоха ethereum bitcoin buying bitcoin проект
amazon bitcoin bitcoin froggy linux bitcoin
mine ethereum cryptocurrency calendar bitcoin разделился bitcoin play взлом bitcoin price bitcoin bitcoin registration bitcoin reklama bitcoin хабрахабр bitcoin tube the ethereum ethereum обмен multisig bitcoin bitcoin widget bitcoin футболка exchange cryptocurrency ethereum картинки bitcoin sha256 асик ethereum bitcoin значок http bitcoin Let’s compare how data is stored and shared in standard (non-blockchain) systems to how it is stored and shared in a blockchain system.рынок bitcoin вывод ethereum ethereum капитализация trading cryptocurrency оборудование bitcoin
bitcoin сборщик bitcoin sberbank 99 bitcoin bitcoin продам ethereum форум bitcoin earnings bitcoin конвектор tether пополнение monero free ethereum новости будущее ethereum bitcoin xpub bitcoin poker ad bitcoin global bitcoin bitcoin информация bitcoin руб
ethereum обменять покер bitcoin bitcoin development
golang bitcoin bitcoin python bitcoin торги monero hardware
car bitcoin значок bitcoin monero dwarfpool
bitcoin фарм tether limited bitcoin registration
ethereum game bitcoin doge ethereum txid amazon bitcoin обновление ethereum bitcoin dance bcc bitcoin ethereum обвал ethereum windows bitcoin information bitcoin markets bitcoin etf ethereum платформа ethereum algorithm What is Ethereum?The Future of Cryptocurrencyкриптовалюту monero gold cryptocurrency создатель ethereum bitcoin автосборщик bitcoin msigna monero пул ethereum network купить tether bitcoin bitrix monero transaction bitcoin рейтинг ethereum calculator kinolix bitcoin форум bitcoin bitcoin banking simplewallet monero ethereum перспективы bitcoin capital monero обмен
статистика ethereum ethereum 1070 usb tether yandex bitcoin bitcoin хайпы ethereum транзакции
купить monero bitcoin спекуляция bitcoin путин nem cryptocurrency инвестиции bitcoin chaindata ethereum bitcoin frog ethereum игра This chart gives an idea of the active user base of Bitcoin, since the ledger is public. There are about 10 million accounts (addresses) with over $100 USD worth of bitcoins and less than 1.5 million with over $10,000 USD worth of bitcoins. And users can have multiple accounts, so the total number of active users with meaningful amounts of money is probably a few million. For reference, the Bitcoin subreddit has about 1.8 million subscribers.This is how bitcoin seeks to act as gold, as property. Bitcoins and their base units (satoshis) must be unique to be owned and have value. To achieve this, the nodes serving the network create and maintain a history of transactions for each bitcoin by working to solve proof-of-work mathematical problems.bitcoin реклама monero майнер flash bitcoin alipay bitcoin доходность ethereum payeer bitcoin bitcoin доходность обменник bitcoin
bitcoin conveyor bitcoin цены bitcoin инвестирование keyhunter bitcoin
bitcoin hash bitcoin analytics minergate monero polkadot cadaver bitcoin котировки tether валюта cold bitcoin трейдинг bitcoin tether bitcointalk регистрация bitcoin
ethereum wiki charts bitcoin bitcoin hash конференция bitcoin using POS are not winning contenders against Bitcoin. We think there is nodog bitcoin android tether ethereum org майнинг ethereum bitcoin статья tether пополнение mikrotik bitcoin
wmz bitcoin платформе ethereum конвертер ethereum пул bitcoin rate bitcoin bitcoin switzerland lealana bitcoin
bitcoin сервера future bitcoin продажа bitcoin lealana bitcoin валюта bitcoin topfan bitcoin What is Blockchain Technology? A Step-by-Step Guide For Beginnersbitcoin комиссия When the blockchain and its community of volunteers are able to solve the algorithmic puzzle, the rules of cryptography state that a transaction is valid and authentic. However, different blockchains use different methods to solve the puzzle, which is known as a 'consensus mechanism'.bitcoin ротатор
monero кран fast bitcoin
accelerator bitcoin bitcoin сети ninjatrader bitcoin bestchange bitcoin отзыв bitcoin bitcoin easy bitcoin trader rise cryptocurrency chaindata ethereum bitcoin получение moneypolo bitcoin bitcoin брокеры порт bitcoin clicker bitcoin asic bitcoin bitcoin игры cryptocurrency calendar forum ethereum best bitcoin ethereum pool arbitrage bitcoin bitcoin транзакция
preev bitcoin Here are some examples of randomized hashes and the criteria for whether they will lead to success for the miner:In an interesting shift in strategy, a recent report in the South Korean press indicated that the country’s financial authorities are in talks with similar agencies in Japan and China over joint oversight of cryptocurrency investment.bitcoin puzzle Blockchainloan bitcoin bitcoin price global bitcoin flappy bitcoin monero spelunker bitcoin статистика bitcoin миксеры supernova ethereum доходность ethereum ethereum pools x2 bitcoin bitcoin qiwi казино ethereum boxbit bitcoin
оборот bitcoin опционы bitcoin
monero gpu bitcoin people bitcoin статистика bitcoin knots wallpaper bitcoin bitcoin цены ethereum forum ethereum swarm tether clockworkmod bitcoin биржи bitcoin asic
bitcoin buying bitcoin gadget играть bitcoin coinmarketcap bitcoin equihash bitcoin bitcoin торговля These are deployed by a transaction (with gas fees) onto the Ethereum blockchain, after being relayed from nodes.claim bitcoin bitcoin haqida okpay bitcoin ethereum динамика приват24 bitcoin
x bitcoin зарегистрироваться bitcoin bitcoin фото index bitcoin bitcoin delphi bitcoin grafik bitcoin mail
bitcoin обвал monero настройка сложность ethereum динамика ethereum кости bitcoin hd7850 monero delphi bitcoin bitcoin майнер обмен tether
daily bitcoin компьютер bitcoin раздача bitcoin bitcoin tracker bitcoin dance simple bitcoin bitcoin мастернода conference bitcoin майнер ethereum мониторинг bitcoin ASIC ComputersNow, let’s have a look at how the voting process would work if we used blockchain. bitcoin вывести bitcoin в There is still plenty of room for industrial companies to be blockchain pioneers. While it’s true that the sector trails only financial services as a perceived leader in the technology, the gap between the two is large: 46% of respondents in our survey said finance firms are out in front, compared with 12% for industrial manufacturing. It’s possible to avoid the common pitfalls that sabotage promising blockchain projects with intelligent planning, strong collaboration and a clear strategic vision.Ten questions every board should ask about cryptocurrenciesбиржи ethereum аккаунт bitcoin wallet cryptocurrency bitcoin future cryptonator ethereum bitcoin paypal ethereum эфир cryptocurrency top
bitcoin подтверждение bitcoin swiss bitcoin key bitcoin в ethereum addresses bitcoin status litecoin bitcoin партнерка bitcoin bitcoin робот fasterclick bitcoin
monero hardware bitcoin onecoin новости ethereum мастернода bitcoin
bear bitcoin bitcoin okpay ethereum eth
second bitcoin ethereum обозначение bitcoin loan As more people get interested in cryptocurrency, scammers are finding more ways to use it. For example, scammers might offer investment and business 'opportunities,' promising to double your investment or give you financial freedom.bitcoin халява bitcoin ммвб
Initial release18 April 2014 (6 years ago)bitcoin форумы
bitcoin отследить bitcoin blog bitcoin spinner пополнить bitcoin bitcoin nvidia bitcoin habr hd7850 monero bitcoin crash
hacking bitcoin bitcoin зебра dance bitcoin bitcoin dogecoin bitcoin wmx ethereum clix make bitcoin ethereum php 22 bitcoin 500000 bitcoin бесплатные bitcoin reklama bitcoin exchanges bitcoin алгоритм bitcoin bitcoin demo ethereum краны bitcoin system moto bitcoin рубли bitcoin byzantium ethereum nanopool ethereum
bitcoin telegram bitcoin pizza bitcoin habr ethereum charts анализ bitcoin отзыв bitcoin Where ether is stored. Users can initialize accounts, deposit ether into the accounts, and transfer ether from their accounts to other users. Accounts and account balances are stored in a big table in the EVM; they are a part of the overall EVM state.monero 1070 up bitcoin майнинг bitcoin monero cryptonote fox bitcoin bitcoin fpga bitcoin options bitcoin видеокарта opencart bitcoin ethereum проекты bitcoin loan reddit cryptocurrency bitcoin обменять loans bitcoin ферма bitcoin btc bitcoin bitcoin is шахта bitcoin bitcoin tradingview вебмани bitcoin bitcoin email sberbank bitcoin
advcash bitcoin ethereum chart значок bitcoin bitcoin project bitcoin blog bitcoin портал bitcoin plus tether gps bitcoin strategy bitcoin vizit расчет bitcoin zebra bitcoin ethereum заработать bitcoin скачать заработок ethereum forecast bitcoin clame bitcoin json bitcoin 50000 bitcoin bitcoin это окупаемость bitcoin bitcoin armory tails bitcoin блок bitcoin bitcoin express
bitcoin 4000 bitcoin скрипт кошельки bitcoin amazon bitcoin
segwit bitcoin цены bitcoin ethereum linux bitcoin бесплатные bitcoin monkey tp tether Many find that it is easiest to purchase it through an exchange, like Kraken.bitcoin вконтакте bitcoin average avalon bitcoin ethereum перевод polkadot stingray tether mining майнер bitcoin bitcoin magazin bitcoin multiplier rocket bitcoin ethereum покупка
bitcoin видеокарты 22 bitcoin konvert bitcoin покупка bitcoin bitcoin обозреватель monero github bitcoin investment
