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.
bitcoin mac теханализ bitcoin полевые bitcoin instant bitcoin captcha bitcoin bitcoin best
ethereum статистика
clockworkmod tether обновление ethereum криптовалюты bitcoin bitcoin analysis биржи monero кран ethereum bitcoin пополнение bitcoin escrow
bitcoin drip If you already know Bitcoin, Litecoin is very similar, the two main differences being that it has faster confirmation times and it uses a different hashing algorithm.bitcoin скрипты автомат bitcoin bitcoin таблица monero core bitcoin okpay
bitcoin оборудование кредит bitcoin win bitcoin blocks bitcoin ethereum blockchain ethereum forks калькулятор ethereum bitcoin мастернода buy tether in bitcoin captcha bitcoin
bitcoin virus миксер bitcoin registration bitcoin p2pool bitcoin миксер bitcoin home bitcoin зарегистрироваться bitcoin stellar cryptocurrency koshelek bitcoin clicker bitcoin bitcoin софт
bitcoin видеокарта bitcoin haqida doge bitcoin mercado bitcoin bitcoin capital bitcoin payment пулы bitcoin bitcoin alliance bitcoin бесплатный
avto bitcoin bitcoin gadget bitcoin часы monero address bitcoin btc зарегистрироваться bitcoin
бесплатно bitcoin bitcoin demo прогнозы bitcoin
china bitcoin coinder bitcoin bitcoin рбк
bitcoin mmgp знак bitcoin
разработчик bitcoin bitcoin evolution mindgate bitcoin bag bitcoin cryptocurrency bitcoin agario bitcoin bitcoin grafik bitcoin теханализ The implications for auditing and accounting are profound.There are treacherous passes in any technological revolution.ethereum майнить вики bitcoin bitcoin land homestead ethereum raiden ethereum abc bitcoin money bitcoin bitcoin forecast freeman bitcoin monero btc разработчик bitcoin ethereum core monero ico деньги bitcoin 1 ethereum boxbit bitcoin bitcoin daily пулы bitcoin bitcoin virus bitcoin girls bitcoin clicks bitcoin putin bitcoin смесители ethereum заработок bitcoin fpga играть bitcoin будущее ethereum bitcoin вклады перспективы ethereum bitcoin ферма dark bitcoin bitcoin prominer amd bitcoin bitcoin ticker mindgate bitcoin расчет bitcoin bitcoin таблица
ethereum faucet bitcoin видео
аналоги bitcoin bitcoin network fasterclick bitcoin bitcoin laundering ethereum txid платформу ethereum ethereum обменять
ethereum coin ethereum miner хайпы bitcoin розыгрыш bitcoin рубли bitcoin txid ethereum ethereum купить bitcoin ann scrypt bitcoin bitcoin комиссия android tether bitcoin акции tinkoff bitcoin polkadot cadaver bitcoin wikipedia bitcoin сложность ethereum fork валюта tether bitcoin doubler carding bitcoin tether купить abi ethereum bitcoin fun сколько bitcoin bitcoin transaction халява bitcoin
hd bitcoin kupit bitcoin bitcoin блок get bitcoin bitcoin life
bitcoin даром plasma ethereum кран bitcoin erc20 ethereum bitcoin broker battle bitcoin ethereum купить hd7850 monero qr bitcoin bitcoin purse 1080 ethereum gas ethereum bitcoin p2p bitcoin torrent логотип bitcoin ethereum install bitcoin войти bitcoin оборот кредит bitcoin airbit bitcoin bitcoin atm monero cpuminer автосборщик bitcoin ethereum создатель bitcoin fpga matteo monero компания bitcoin яндекс bitcoin euro bitcoin wifi tether bitcoin страна tether ico express bitcoin system bitcoin bitcoin значок free ethereum bear bitcoin bounty bitcoin bitcoin lurk
bitcoin покупка gps tether bitcoin example bitcoin calc bitcoin auto bitcoin карты bitcoin bitcoin playstation ethereum эфириум alipay bitcoin ethereum calc monero обменять strategy bitcoin flypool ethereum bitcoin gpu
блоки bitcoin доходность ethereum dat bitcoin bitcoin forbes bitcoin fire Perhaps there may be situations where the same person fulfills both roles, most likely in cases where the business is small, and people traditionally wear more than one hat. Whatever the case, the everyday responsibilities and roles of the Blockchain developer are: In Nakamoto Proof-of-Work consensus, it can be said that 'one CPU is one vote.' In Proof-of-Stake, it can be said that 'one coin is one vote.' Distributing influence over coin holders arguably creates a wider and more liquid distribution for coinbase rewards than the mere paying of miners, who (as we have discussed) have incentive to cartelize in an attack scenario. Therefore, Proof-of-Stake may be an effective addition to Proof-of-Work systems if used to improve human consensus about network rules. However, it is not robust enough to be used alone.bitcoin surf ethereum news buy tether bitcoin farm продам ethereum трейдинг bitcoin обозначение bitcoin But, every country has a different legal approach to cryptocurrencies and blockchains, with some more accepting of the new technology than others.Ethereum 2.0, which was launched Dec. 1, 2020, aims to fix some of these issues. Other scaling technologies, such as Raiden – which has been in the works for years – could help with the scalability problem as well.How to Use Ethereumbitcoin bloomberg
bitcoin genesis bitcoin пирамида tether кошелек byzantium ethereum bitcoin карта bitcoin symbol ann bitcoin обзор bitcoin bitcoin telegram ethereum проблемы
автосборщик bitcoin bitcoin greenaddress bitcoin crash котировки bitcoin bitcoin монета
monero cpu ethereum описание bitcoin golden
bitcoin форк bitcoin update coinbase ethereum анимация bitcoin ethereum проекты geth ethereum bitcoin hesaplama bitcoin casino monero купить converter bitcoin tp tether новости monero bitcoin keywords simplewallet monero bitcoin mmgp cryptocurrency calendar обменник ethereum mooning bitcoin bitcoin register google bitcoin ethereum биржи
bitcoin открыть продать monero pools bitcoin bitcoin playstation maps bitcoin
bitcoin banks хардфорк bitcoin dash cryptocurrency куплю ethereum bitcoin стратегия bitcoin вклады bitcoin видео криптовалюта tether 1000 bitcoin ethereum contracts torrent bitcoin bitcoin реклама
bitcoin валюта bitcoin scam стоимость monero ethereum go cryptocurrency tech конференция bitcoin bitcoin s atm bitcoin bitcoin instagram виталик ethereum bitcoin блокчейн skrill bitcoin бот bitcoin сбербанк bitcoin
продам ethereum bitcoin trade bitcoin coinwarz ethereum валюта bitcoin prosto bitcoin рублей зебра bitcoin fast bitcoin cryptocurrency trading lazy bitcoin ethereum телеграмм stealer bitcoin cryptocurrency nem bitcoin compare
bitcoin пожертвование платформу ethereum
cryptocurrency ethereum swiss bitcoin tether отзывы инструкция bitcoin japan bitcoin программа tether капитализация bitcoin Safetybitcoin инструкция сокращение bitcoin bitcoin club agario bitcoin bitcoin investment bitcoin instagram сложность bitcoin bitcoin two bitcoin planet bitcoin course кран bitcoin проект ethereum bitcoin visa fire bitcoin bitcoin 3 bitcoin advcash миксер bitcoin bitcoin удвоить bitcoin moneybox bitcoin auto cubits bitcoin играть bitcoin bitcoin удвоить bitcoin основатель bitcoin рухнул bitcoin компания my ethereum is bitcoin bitcoin status бесплатно bitcoin скрипт bitcoin bitcoin майнеры курс bitcoin
bitcoin ваучер bitcoin криптовалюта форекс bitcoin enterprise ethereum bitcoin txid invest bitcoin продажа bitcoin
bitcoin ключи
сбор bitcoin index bitcoin bitcoin eobot mastercard bitcoin monster bitcoin card bitcoin ethereum calc bitcoin сокращение lealana bitcoin ethereum poloniex подтверждение bitcoin monero ico карты bitcoin roulette bitcoin bitcoin аналоги баланс bitcoin ethereum покупка сколько bitcoin надежность bitcoin кошельки ethereum ethereum supernova bitcoin rigs кредиты bitcoin
bitcoin сложность ethereum supernova bonus bitcoin bitcoin код bitcoin cash bitcoin background bitcoin kazanma взломать bitcoin лотереи bitcoin bitcoin значок
алгоритм bitcoin bootstrap tether ethereum btc bitcoin конвектор ethereum обменять twitter bitcoin bitcoin tor hit bitcoin tether валюта майнить bitcoin 1000 bitcoin сложность ethereum wirex bitcoin bitcoin registration moneypolo bitcoin bitcoin email
халява bitcoin Unlimited wallet storageblender bitcoin обменник bitcoin roll bitcoin bitcoin скачать платформы ethereum bitcoin статья ecdsa bitcoin bitcoin биржа king bitcoin bitcoin change monero faucet blog bitcoin bitcoin книга mikrotik bitcoin
free monero хайпы bitcoin bitcoin etherium bitcoin flex bitcoin asic nonce bitcoin Blockchain technology is being explored to help streamline and manage content creation and sharing, licensing and distribution, digital use, payments, and royalties for artists. Mycelia is artist Imogen Heap’s Blockchain-based project, which helps give musicians more control over their assets and how they distribute them. Last year, JAAK launched a Blockchain pilot program aimed at solving royalty payment issues. There's some debate as to whether this technology will work within the industry. Most experts agree that once more is known about the technology; it could become more beneficial to music.программа tether bitcoin автоматически bitcointalk ethereum monero nvidia анализ bitcoin bitcoin talk collector bitcoin bitcoin hunter keystore ethereum продам bitcoin bitcoin транзакции bitcoin flapper покупка ethereum
ethereum web3 кредиты bitcoin bitcoin block bitcoin валюты swarm ethereum обзор bitcoin проекта ethereum проекта ethereum bitcoin drip bitcoin donate bitcoin вики code bitcoin bitcoin usd car bitcoin ethereum калькулятор проект bitcoin In other words, in addition to solving the challenging technical problems associated with digital scarcity and creating the first cryptocurrency, Satoshi also chose a smart set of timing and quantity numbers (out of a nearly infinite set that he could have chosen from, if not carefully thought out) to maximize the incentive structure and game theory associated with his new protocol. Or, he was brilliantly lucky with his choices.ethereum обменять Top-notch securitynanopool ethereum анализ bitcoin bitcoin transactions testnet bitcoin antminer bitcoin bitcoin blue конвертер ethereum When Satoshi Nakamoto created Bitcoin in 2009, he not only wanted to create a fair, secure and transparent payment system, but he also wanted to allow people to send and receive funds anonymously.multiplier bitcoin
As noted in Nakamoto's whitepaper, it is possible to verify bitcoin payments without running a full network node (simplified payment verification, SPV). A user only needs a copy of the block headers of the longest chain, which are available by querying network nodes until it is apparent that the longest chain has been obtained. Then, get the Merkle tree branch linking the transaction to its block. Linking the transaction to a place in the chain demonstrates that a network node has accepted it, and blocks added after it further establish the confirmation.hacking bitcoin escrow bitcoin neo cryptocurrency bitcoin reindex хардфорк ethereum курс ethereum ethereum перевод
отзыв bitcoin ethereum dag Miners are like the record-keepers of Ethereum – they check and prove that no one is cheating. Miners who do this work are also rewarded with small amounts of newly-issued ETH.майнить ethereum бесплатно ethereum Who prints it?Monetary commodities like silver and gold have high stock-to-flow ratios. Silver’s ratio is over 20 or 30, and gold’s ratio is over 50 or 60. Specifically, the World Gold Council estimates that 200,000 tons of gold exists above ground, and annual new supply is roughly 3,000 tons, which puts the stock-to-flow ratio somewhere in the mid-60’s as a back-of-the-envelope calculation. In other words, there are over 60 years’ worth of current gold production stored in vaults and other places around the world.консультации bitcoin bitcoin average doubler bitcoin bitcoin multibit пример bitcoin bitcoin paw bitcoin кредиты wild bitcoin tradingview bitcoin bitcoin 123 bitcoin новости сеть ethereum майнить bitcoin
ethereum news air bitcoin компиляция bitcoin bitcoin server bitcoin loto cryptocurrency wallets bitcoin unlimited удвоитель bitcoin tp tether bitcoin run е bitcoin карты bitcoin bitcoin магазин bitcoin кошелек калькулятор ethereum bitcoin торги
deep bitcoin
bitcoin roulette bitcoin capital ethereum видеокарты tokens ethereum bitcoin ann bitcoin machine
bitcoin stock bitcoin обозначение ethereum рост bitcoin hype bitcoin кредиты bitcoin history основатель ethereum ubuntu bitcoin
bitcoin теханализ payza bitcoin javascript bitcoin
x2 bitcoin бесплатные bitcoin ферма bitcoin bitcoin journal bitcoin obmen
usd bitcoin bitcoin список bitcoin eth my ethereum waves cryptocurrency wallets cryptocurrency bitcoin database подтверждение bitcoin bitcoin daily kran bitcoin
bitcoin оборот php bitcoin бесплатный bitcoin новые bitcoin bitcoin 2020 валюта tether bitcoin cash блок bitcoin bitcoin instagram теханализ bitcoin bitcoin sell bitcoin магазины map bitcoin ethereum покупка торги bitcoin fx bitcoin ethereum токены проекты bitcoin new cryptocurrency matteo monero takara bitcoin bitcoin бонусы скачать bitcoin bitcoin официальный
bitcoin genesis half bitcoin Although not especially common or popular, sound wallets are another way to secure virtual currency tokens. The sound wallet technology involves keeping the private keys in encrypted sound files in products such as Compact Discs (CD’s) and vinyl disks. The code hidden in these audio files can be deciphered using a spectroscope app or high-resolution spectroscope.bitcoin hype знак bitcoin ethereum проблемы bitcoin шахты bitcoin multiplier world bitcoin average bitcoin all cryptocurrency finney ethereum
bitcoin earnings bitcoin simple bitcoin развод ethereum web3 chain bitcoin ethereum пулы
обмен tether bitcoin коллектор bitcoin nvidia bitcoin гарант monero usd
bitcoin комментарии протокол bitcoin bitcoin зарегистрироваться roll bitcoin
bitcoin сети
cryptocurrency wallets frontier ethereum oil bitcoin decred cryptocurrency
deep bitcoin bitcoin продам bitcoin книги карты bitcoin plasma ethereum bitcoin gambling bitcoin вконтакте график ethereum Supports more than 1500 coins and tokensIn November 2016, the Swiss Railway operator SBB (CFF) upgraded all their automated ticket machines so that bitcoin could be bought from them using the scanner on the ticket machine to scan the bitcoin address on a phone app.bitcoin green field bitcoin
bitcoin майнить bitcoin mac pos bitcoin сложность ethereum bitcoin fpga установка bitcoin
математика bitcoin bitcoin установка bitcoin casino обменники ethereum korbit bitcoin bitcoin mt4 форумы bitcoin faucet ethereum bitcoin краны
вход bitcoin bitcoin block ann monero
Bitcoin is an API for money, where bitcoin cryptocurrency is just one example of possible application. Instead of it there can be smart contracts.ethereum node bitcoin click mining bitcoin secp256k1 ethereum
bitcoin 2020 bitcoin xyz bitcoin song книга bitcoin 6000 bitcoin dog bitcoin стоимость bitcoin курс bitcoin bitcoin pdf андроид bitcoin segwit2x bitcoin panda bitcoin конференция bitcoin биржа ethereum bitcoin world bitcoin count tails bitcoin bitcoin prune луна bitcoin ethereum usd de bitcoin polkadot ico рост ethereum bitcoin putin bitcoin pro bitcoin презентация keyhunter bitcoin bitcoin mine
tether gps bitcoin red bitcoin терминалы difficulty bitcoin вывод monero ethereum news bitcoin it icon bitcoin blocks bitcoin bitcoin rt
polkadot ico bitcoin suisse blog bitcoin
boom bitcoin bitcoin location ethereum dark bitcoin count monero poloniex купить ethereum сайте bitcoin all cryptocurrency bitcoin tor bitcoin nodes сбербанк bitcoin json bitcoin monero обмен bitcoin exe bitcoin bitminer зарабатывать bitcoin wei ethereum bitcoin funding ethereum pool курс monero r bitcoin
cryptocurrency logo проблемы bitcoin topfan bitcoin андроид bitcoin download bitcoin The rise in popularity of Litecoin and other cryptocurrencies is largely in response to the demand for alternative currency options that separate themselves from centralized banks and governments. The other side of the demand is from traders and investors who have realized the massive potential that cryptocurrencies have to offer, and so many stock and forex traders have changed the market (remember, the market grew from $17.7-650 billion in one year). Cryptocurrency is arguably easier to enter for traders, meaning that in 2017, millions of beginners, as well as seasoned traders, began buying and selling different coins.Sharebitcoin блокчейн
