Understanding Digital Currency
Unless you’ve been living in Mars or Venus, it is possible that you’ve come across some news discussing the main function of digital currencies such as bitcoin. Digital currencies have caught the attention of many investors because they tend to increase in value with time. Besides bitcoin, there are other digital currencies which tend to have a higher value depending on changes in the market. Such a currency includes the alt coins. Most of the digital currencies are normally based on blockchain, which tends to be a data base that supports them. Blockchain technology doesn’t depend on third parties, and instead, the trust is placed on mathematics.
Digital currencies have lower transaction fees as compared to credit cards. International use of credit cards is very expensive for someone who is trying to accept payments in full amount from employers or clients who live abroad. Fortunately, when you use the blockchain, you receive your money in full especially because the charges are much lower. Actually, it is also possible for you to get zero charges while making the transaction. With digital currencies you are also able to avoid all the fraud that is experienced through chargebacks. A customer who uses his credit card to get their products has the freedom to return the product to the company if it fails to serve them well. They are also capable of asking for a full refund from the company.
When you make or accept payments using digital currencies, you are sure that no chargebacks are involved. The payment is fully completed after you have received your money from the client. A good business is the one that you have the freedom to make a refund and no chargebacks are involved after finding out that the entire transaction was fraudulent.
There is no inflation involved with digital currencies. Inflation is a problem that is commonly experienced in many third world countries. Inflation of currencies is something that most banks do whenever there are changes that do not favor them in the business market. It allows them to stay relevant and continue running. However, since the digital currencies have controlled quantity limits, there is no inflation involved. Also, as a business owner, digital currency tends to create a long lasting relationship and trust between your customers and your business. This is because when you are doing business using digital currencies, you do not have to access your customer’s credit card, ensuring that they have been protected from cyber-attacks.
Also, your chances of creating new relationships with other companies are increased when you use digital currencies. Reports have shown that most business owners prefer working with those companies that accept bitcoin as well as the rest of the digital currencies. Also, this is also a good way to make international clients and customers do business with you. This is because you can easily send and receive money from them without necessarily having to go through major transaction hassles. This is beneficial as it allows you to get more returns after making an investment through serving customers all around the world.