Bitcoin is the new currency. If you have been surfing on their website, you must have come through the term bitcoins. Bitcoin is a digital currency which is produced using computer algorithms. The bitcoin was developed in 2009 as a result of the global financial crisis. The developer intended to mitigate the risks associated with the normal currencies by introducing a digital currency that was free from government regulations but accepted worldwide. Although the value of bitcoins has exploded over the years, credit cards remain reliable and convenient over them. Here are some of the reasons why credit cards are not going away presently or in future.
Credit cards carry important customer data which is embedded in the magnetic chips. On the other hand, bitcoins lack customer data. Hence, information provided in credit cards can be analyzed for the purpose of coming up with tailor-made financial services, unlike bitcoin where the owner remains anonymous.
Link with Customers
Credit cards link customers with sellers. A seller can gather information regarding a customer and determine the specific products he or she has purchased. This is not the case with bitcoins because the seller does not have access to information about the profile of the buyer.
Given that bitcoins can be used discretely, they could be used to carry out criminal activities. Users can use the crypto-currency to pay illegal services such as hiring hit-men, paying terrorists and demanding for ransom. However, with credit cards, such activities have been deterred. A buyer who uses a card for criminal activities can be traced to their doorstep because user information is recorded when one is offered the card using a legal identification card.
Ease of use
Undeniably, a majority of people do not understand how bitcoins work. The process of acquiring bitcoin is hectic and understandable to a few. On the other hand, credit cards are easy to use. All one needs to know is how to pay for services and access money.
Credit cards are reliable because they have been accepted worldwide. However, people are adamant to use the bitcoin because there is no entity that regulates how they are traded. Besides, the volatile nature of Bitcoin makes it a less ideal method of transacting. A lot of people are also adamant to embrace the bitcoin. Hence, the credit card will continue to exist despite the much-publicized use of bitcoins.