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.
siiz bitcoin bitcoin froggy bitcoin kurs bitcoin шахты simplewallet monero bitcoin database bitcoin рублях supernova ethereum arbitrage bitcoin bitcoin машины
by bitcoin
bitcoin матрица bitcoin добыть boxbit bitcoin bitcoin symbol bitcoin synchronization bitcoin xl
json bitcoin ethereum twitter bitcoin frog cryptocurrency это
bitcoinwisdom ethereum bitcoin принимаем сервисы bitcoin Before Blockchainmac bitcoin bitcoin mmm bitcoin bloomberg bitcoin bitcointalk se*****256k1 bitcoin bitcoin торги надежность bitcoin ethereum go bitcoin cash doge bitcoin bitcoin терминалы зарегистрировать bitcoin bitcoin asic ava bitcoin
tether верификация bitcoin services обсуждение bitcoin uk bitcoin обновление ethereum payoneer bitcoin bitcoin atm bitcoin trading pos ethereum reddit bitcoin bitcoin серфинг 2018 bitcoin bitcoin бумажник мастернода bitcoin monero hardware tether app bitcoin data monero cryptonight bounty bitcoin super bitcoin bitcoin rigs gold cryptocurrency работа bitcoin bitcoin masters bitcoin шахта tera bitcoin bitcoin exchanges теханализ bitcoin
bitcoin терминал лотереи bitcoin ethereum windows ecdsa bitcoin By now you've probably heard about the cryptocurrency craze. Either a family member, friend, neighbor, doctor, Uber driver, sales associate, server, barista, or passer-by on the street, has probably told you how he or she is getting rich quick with virtual currencies like bitcoin, Ethereum, Ripple, or one of the lesser-known 1,300-plus investable cryptocurrencies.аналитика ethereum bitcoin хабрахабр удвоитель bitcoin chaindata ethereum monero обменять autobot bitcoin bitcoin girls Healthcaremonero стоимость Smart contractsаналоги bitcoin daily bitcoin bitcoin earning The amount that you receive is based on how much power you contribute, and they release their payments daily.Cloud Miningdirect bitcoin • It is a digital bearer asset similar to a commodity.online bitcoin monero криптовалюта bitcoin neteller monero пул In the example given above, you will produce a successful hash on average every other try. You can even estimate the probability that a given hash attempt will generate a number below the target threshold. Bitcoin assumes a linear probability that the lower it makes the target threshold, the more hash attempts (on average) will need to be tried.protocol bitcoin bitcoin simple кран ethereum ethereum blockchain платформу ethereum bitcoin xyz miner bitcoin bitcoin usa фото bitcoin bitcoin traffic кошелек monero bitcoin formula Identitymonero windows trade cryptocurrency vector bitcoin команды bitcoin github ethereum bitcoin hash bitcoin department bitcoin rub bitcoin like ann monero bitcoin скрипты monero rur ethereum addresses wallets cryptocurrency reddit ethereum jax bitcoin bitcoin zona bitcoin qiwi bitcoin wiki ru bitcoin bitcoin 2010 bitcoin принцип protocol bitcoin cold bitcoin bitcoin journal
monero price стоимость bitcoin bitcoin проект bitcoin биржа homestead ethereum bitcoin trinity ethereum project автомат bitcoin On 10 January 2017, the privacy of Monero transactions was further strengthened by the adoption of Bitcoin Core developer Gregory Maxwell's algorithm Confidential Transactions, hiding the amounts being transacted, in combination with an improved version of Ring Signatures.You'd have to get a fast mining rig, or, more realistically, join a mining pool—a group of coin miners who combine their computing power and split the mined bitcoin. Mining pools are comparable to those Powerball clubs whose members buy lottery tickets en masse and agree to share any winnings. A disproportionately large number of blocks are mined by pools rather than by individual miners.майнер bitcoin What Is Cold Storage?bitcoin ваучер лотерея bitcoin отследить bitcoin bitcoin scan ethereum обменять nanopool monero
bitcoin автоматически криптовалюта tether
настройка monero bitcoin maining карты bitcoin bitcoin script ebay bitcoin
bitcoin btc
майнинг tether p2pool monero script bitcoin cudaminer bitcoin bitcoin donate cryptocurrency reddit
bitcoin автоматический alliance bitcoin bitcoin mt4 кредит bitcoin bitcoin anonymous bitcoin сколько приложение bitcoin abi ethereum вклады bitcoin
bitcoin 33 bitcoin take приложение tether
wallet tether bitcoin transactions etoro bitcoin aliexpress bitcoin
стратегия bitcoin bank bitcoin wmz bitcoin bitcoin armory
trade cryptocurrency blogspot bitcoin Example: 0x1510f53c063f9669The 2000sлото bitcoin заработать monero ethereum логотип cryptocurrency news партнерка bitcoin bitcoin register service bitcoin bitcoin начало создать bitcoin tether программа roulette bitcoin market bitcoin ethereum programming
bitcoin приложения The bitcoin network is a peer-to-peer payment network that operates on a cryptographic protocol. Users send and receive bitcoins, the units of currency, by broadcasting digitally signed messages to the network using bitcoin cryptocurrency wallet software. Transactions are recorded into a distributed, replicated public database known as the blockchain, with consensus achieved by a proof-of-work system called mining. Satoshi Nakamoto, the designer of bitcoin, claimed that design and coding of bitcoin began in 2007. The project was released in 2009 as open source software.ethereum foundation обсуждение bitcoin bitcoin register продать ethereum cryptocurrency bitcoin zona etoro bitcoin stealer bitcoin dash cryptocurrency bitcoin платформа ethereum кошелька вход bitcoin rocket bitcoin ethereum core bitcoin freebie конвектор bitcoin разделение ethereum сложность ethereum bitcoin goldmine ethereum википедия boom bitcoin
ethereum вики
s bitcoin ethereum news bitcoin maps
bitcoin talk bitcoin реклама
эфир bitcoin ethereum api bitcoin cap bitcoin casino bitcoin charts
принимаем bitcoin bitcoin 3 locate bitcoin
pow bitcoin bitcoin картинки metal bitcoin hashrate bitcoin accepts bitcoin регистрация bitcoin bitcoin магазины спекуляция bitcoin ethereum продам кошелька bitcoin bitcoin отзывы bitcoin stiller
bitcoin download casinos bitcoin 4pda bitcoin transactions bitcoin bitcoin novosti collector bitcoin trezor bitcoin
As Nobel-laureate Robert Shiller observes: 'Gold is a bubble, but it's always been a bubble. Itbest bitcoin bitcoin rpc reddit bitcoin bitcoin 2x bitcoin pps Because it opens the door to a global financial system where an Internet connection is all you need to access applications, products and services that operate in a trustless manner. Anyone can interact with the Ethereum network and participate in this digital economy, without the need for third parties and without the risk of censorship.kinolix bitcoin bitcoin scam майнер bitcoin bitcoin legal dash cryptocurrency bitcoin ne bitcoin 99 bitcoin спекуляция bitcoin 2020 bitcoin сатоши
download tether okpay bitcoin qtminer ethereum новости monero bitcoin eu математика bitcoin bitcoin 2020 best bitcoin 1080 ethereum bitcoin word кошельки bitcoin monero вывод ethereum metropolis bitcoin nvidia network bitcoin bitcoin исходники bitcoin network
global bitcoin bitcoin background
planet bitcoin bitcoin магазины the ethereum bitcoin daily bitcoin приват24 bitcoin calculator
bitcoin капча ethereum addresses bitcoin de best cryptocurrency bitcoin kurs рост bitcoin mine ethereum биржа bitcoin bitcoin create film bitcoin cryptocurrency wikipedia coin bitcoin freeman bitcoin программа tether ico monero ubuntu bitcoin bitcoin мошенники tinkoff bitcoin tether mining InterPlanetary File System (IPFS) makes it easy to conceptualize how a distributed web might operate. Similar to the way a BitTorrent moves data around the internet, IPFS gets rid of the need for centralized client-server relationships (i.e., the current web). An internet made up of completely decentralized websites has the potential to speed up file transfer and streaming times. Such an improvement is not only convenient. It’s a necessary upgrade to the web’s currently overloaded content-delivery systems.вывод bitcoin
bitcoin traffic ethereum telegram курс ethereum freeman bitcoin bitcoin stellar cold bitcoin bitcoin flapper trezor bitcoin keystore ethereum рулетка bitcoin claim bitcoin exchange cryptocurrency ethereum вывод bitcoin расшифровка bitcoin казино bitcoin валюта bitcoin earning bitcoin fire
android tether live bitcoin bitcoin магазин ico ethereum cap bitcoin
bitcoin приложение golden bitcoin статистика ethereum monero прогноз exchange ethereum instant bitcoin bitcoin adress торрент bitcoin сбербанк bitcoin bitcoin mixer bitcoin мониторинг bitcoin котировки tether usd epay bitcoin bitcoin node wild bitcoin ethereum testnet bitcoin dogecoin amazon bitcoin
foto bitcoin reddit bitcoin котировки bitcoin 50 bitcoin cryptocurrency market
трейдинг bitcoin direct bitcoin автокран bitcoin хардфорк ethereum bitcoin регистрация bitcoin skrill bitcoin форки ethereum продать обменники bitcoin analysis bitcoin bitcoin перевод bitcoin bat рубли bitcoin bitcoin блокчейн planet bitcoin счет bitcoin обменники ethereum лучшие bitcoin bitcoin rpg bitcoin bitrix транзакции monero ethereum gas
bitcoin forecast boom bitcoin создатель bitcoin bitcoin перевод bitcoin презентация bitcointalk bitcoin android tether новости bitcoin bitcoin metal bitcoin торговля кошельки ethereum market bitcoin forum bitcoin сложность monero tether provisioning key bitcoin криптовалюту bitcoin
bitcoin 4 bitcoin protocol bitcoin фарм ssl bitcoin bitcoin развод bitcoin portable bitcoin central cryptocurrency forum ethereum programming
bitcoin установка claymore monero delphi bitcoin bear bitcoin rpg bitcoin ethereum swarm биржа ethereum ethereum контракт bitcoin fasttech
вклады bitcoin bitcoin сбербанк water bitcoin bitcoin анимация
r bitcoin работа bitcoin chvrches tether bitcoin 99 invest bitcoin polkadot stingray addnode bitcoin продажа bitcoin coins bitcoin
bitcoin пузырь mine ethereum fire bitcoin криптовалюту monero bitcoin grafik обновление ethereum bitcoin stock Nonce:bitcoin minecraft bitcointalk ethereum bitcoin sha256 bitcoin mining production cryptocurrency статистика ethereum ethereum com программа bitcoin
алгоритм ethereum swarm ethereum ethereum investing
bitcoin javascript консультации bitcoin kurs bitcoin вход bitcoin bitcoin 2020 monero minergate bitcoin expanse bitcoin автоматически bitcoin alien bitcoin joker ethereum фото bitcoin биткоин bitcoin падение cms bitcoin
microsoft bitcoin ETH isn't the only crypto on Ethereumbitcoin куплю Wallet 1Jv11eRMNPwRc1jK1A1Pye5cH2kc5urtLPopencart bitcoin
ethereum картинки
bitcoin explorer coindesk bitcoin bitcoin redex график bitcoin ethereum github bitcoin регистрации ethereum classic statistics bitcoin форки bitcoin bitcoin get bistler bitcoin bitcoin banking кран bitcoin ethereum рост xronos cryptocurrency форумы bitcoin siiz bitcoin прогнозы ethereum weekly bitcoin bitcoin indonesia bitcoin database 16 bitcoin обменники bitcoin обменять ethereum free bitcoin
2 bitcoin bitcoin бумажник портал bitcoin платформ ethereum bitcoin value bitcoin iso 9000 bitcoin бесплатные bitcoin
cc bitcoin film bitcoin bitcoin bloomberg fork ethereum
bitcoin бот tracker bitcoin bitcoin background bitcoin landing логотип bitcoin ethereum сайт чат bitcoin курса ethereum bitcoin комиссия siiz bitcoin bitcoin online 