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Add to the solution of paying anonymously or globally that transfers are generally shorter than bank account transfers. With banks and checking/savings account
by drawkbox 9y ago
Add to the solution of paying anonymously or globally that transfers are generally shorter than bank account transfers.
With banks and checking/savings accounts you have 3-5 business days, mainly due to the ACH and for fraud protection. But some transactions don't need fraud protection or are low enough that it might not matter. In that case bitcoin can transfer funds, verify it within an hour and many times around 20 minutes or so, that is much faster than transferring some money that settles 3-5 days later.
A real world use case for bitcoin is to transfer money into it then buy from third party small products vendors or donations that one may or may not trust with credit card or to maintain privacy on purchases. Paypal usually fills that type of role but some don't use that. In those cases bitcoin and solutions like Bitpay work nicely.
One can use bitcoin (or other alts you like) like a wallet/cash by having a smaller amount in there for transactions that you don't want to share your credit/payment processor information with similar to Paypal. Some might even trust bitcoin wallets more than Paypal and competition is always good. Credit card companies correlate your data through your card email/id to sell your ad data i.e. you order food out you might get competitive food ads. Privacy in bitcoin is a big killer app in those aspects, trust and non-tracked purchases.
Bitcoin is more volatile, if your bank and credit cards are RDBMS then bitcoin is memcached/redis/mongo, more volatile but private. A nice side effect of bitcoin is money may go up in value but alternatively it can lower in value.
Bitcoin could also allow someone to sell products globally without credit processors or other payment solutions that may be blocked or instead of setting those up. This can help entrepreneurs get their products available globally and not just for underground products but small hobbyists, creators, artists, and more. Bitcoin also greatly helps with donations and tips for FOSS and others that setting up a paypal invoice or credit transaction would be more of a pain.
- Nursie 9y agoIs 3-5 days standard in the US? Transfers here in the UK are effectively instant and free.
- drawkbox 9y agoYeah paying with savings/checking accounts they can take 3-5 business days. It may be faster but usually processes in that amount of time. If someone gives you a check the other side can take 3-5 days before it can be pulled/reversed as well. Much of this is due to fraud protections but also to get cheaper transactions during ACH sweeps. You can setup ACH transfers that happen nightly but usually that is for something like regular payment that it is worth setting it up i.e. maybe direct deposit for a contracting job.
- Nursie 9y ago>> If someone gives you a check Ha, I haven't had a chequebook for over a decade now. Seems like archaic tech :)
- fadzlishah 9y agoWho’s still using cheques?