Difference between bitcoin transactions and credit card transactions
Bitcoin and credit card transactions are different from each other, and there are over millions of people are using bitcoin and credit cards and doing transactions using both platforms. So what platform is better for doing the transactions? Credit card agency or the bitcoin platform? People are paying 23 to 30 per cent interest on their credit cards and spending vast amounts of money on them. On the other hand, bitcoin charges a very minimal amount for a single transaction at high speed, usually under ten minutes. We will understand in detail the bitcoin transactions and credit card transactions. If you are planning to invest or trade bitcoin. Go to the website to learn more about bitcoin.
What is bitcoin?
Bitcoin is a decade-old term that is very popular today, and millions of people have held bitcoin in their centralized or decentralized wallets. Bitcoin is a coin that works digitally, and you can use it for making online payments, buying and selling online, sending and receiving funds as bitcoin, and as a form of investment. However, it does not allow third-person groups to be involved in the processing because many miners are working to manage and control it, so the working or functioning can never stop.
Understanding the credit card intermediaries
The credit card issuers and the credit card network are different terms because the issuer may be the company or intermediate that will issue the credit card on your behalf. When you use the payment, they will approve or deny the amount because they are your card issuer, and you have to pay them back with the set interest rate. The credit card network is a different term, such as when you see the Visa Card and Mastercard on your credit card, which means they are the network that is proving or facilitating the service behind that also ties up with different banks around the world.
Bitcoin transactions vs Credit Card transactions
There are the following points that make the bitcoin transactions different from the credit card transactions given below:
- Meaning:- Bitcoin transactions are decentralized transactions that no other third party can track or control because the system is anonymous. Only the miners can solve complex mathematical equations. They cannot change the entire bitcoin system until all the miners in the world agree to a single term. On the other hand, credit card transactions are centralized transactions that occur under the custody of the third-party companies, which means they are the owner and controllers of the credit card.
- Critical transactional process:- The bitcoin transaction works through the public and private key, which means you need the private key to send the crypto payment, and it is your secret key that shows the ownership of your funds, and the public key is the receiving address of your wallet where you will get the bitcoins. On the other hand, since the third party is the owner or controller of the credit card, they have all the rights to allow users to send and receive the funds using their credit card, which means they can approve or deny the transactions.
- Security: If you want to find the safety and break down the bitcoin system, you have to access all the mining computers in the world. That is impossible. Thus, it means that the security of the bitcoin buyer transactions is tremendous and unbelievable to hack unless you are not using the third party bitcoin exchange or not to share your private key on the internet. The credit card machines may be hacked, and there were a lot of machine hacking cases, which shows that the credit card’s security is less than bitcoin.
- Irreversibility of transactions:- The credit card’s transactions are reversible, which means if you send the payment to another person and say to the support team that it was a mistake. I want my money back, and then their support team will help you get back your funds into your account, and sometimes people do frauds with it after buying the goods and services on the internet. Also, you cannot do fabrication on the internet because the transactions are irreversible, which means you need the receiver’s consent to receive the funds into your wallet.
- Transactional fees:- The transaction fees are very high for credit card users, which are around three per cent to five per cent, and you also have to pay the 23 to 30 per cent interest on the funds you are using. So it will be very costly compared to bitcoin because the fees are significantly less or minimal. After all, no company is managing it.