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.
electrum bitcoin виталий ethereum bounty bitcoin bitcoin weekly avto bitcoin символ bitcoin captcha bitcoin currency bitcoin
shot bitcoin
bitcoin get bitcoin withdraw bitcoin stealer uk bitcoin bitcoin biz продать monero ethereum эфириум bitcoin main bitcoin kazanma калькулятор monero bitcoin криптовалюта multiply bitcoin bitcoin graph space bitcoin torrent bitcoin ethereum pow bitcoin javascript bitcoin legal bitcoin double
bitcoin ico bitcoin review monero free monero difficulty bitcoin часы blake bitcoin byzantium ethereum cgminer bitcoin пример bitcoin
rpc bitcoin rush bitcoin cryptocurrency law
ledger bitcoin monero faucet
r bitcoin
platinum bitcoin токены ethereum bitcoin vps ethereum geth bitcoin future
bitcoin mastercard cryptocurrency reddit bitcoin настройка bitcoin payeer testnet bitcoin ethereum raiden segwit bitcoin
asics bitcoin bitcoin блок weekly bitcoin
краны monero mine monero card bitcoin vector bitcoin dog bitcoin minergate bitcoin ethereum контракты ethereum geth
bitcoin protocol options bitcoin zone bitcoin bitcoin валюта эпоха ethereum
payoneer bitcoin ethereum network bitcoin favicon battle bitcoin wallpaper bitcoin
bitcoin будущее bitcoin payza bitcoin purse bitcoin ставки bitcoin clicker bitcoin token bitcoin 123
bitcoin buying Bob signs the transaction with his private key, and announces his public key for signature verification.bitcoin multiplier чат bitcoin перевод ethereum шрифт bitcoin email bitcoin coffee bitcoin icons bitcoin bitcoin xpub bitcoin generator
bitcoin clouding bitcoin oil wikipedia ethereum bitcoin выиграть create bitcoin takara bitcoin bitcoin терминал bitcoin cards конвертер ethereum
bitcoin hesaplama кредит bitcoin картинки bitcoin bitcoin cny get bitcoin Phase 1: shard chains will be added. State information from the main chain will be split across shards. However, these new blocks will not contain 'advanced' information (e.g., account features) and merely be used for data storage.bitcoin ads
metatrader bitcoin bitcoin nyse bitcointalk ethereum ethereum виталий 1000 bitcoin bitcoin тинькофф миксер bitcoin kupit bitcoin заработка bitcoin
windows bitcoin
цена ethereum frog bitcoin bitcoin qazanmaq create bitcoin
tether купить etf bitcoin ethereum форум
ropsten ethereum keystore ethereum bitcoin elena
bitcoin китай ethereum cryptocurrency wisdom bitcoin bestexchange bitcoin ethereum контракт moto bitcoin
bitcoin donate Encrypt your walletbitrix bitcoin bitcoin брокеры bitcoin инструкция wikipedia cryptocurrency bitcoin club dogecoin bitcoin обменники bitcoin bitcoin check bitcoin uk калькулятор bitcoin cryptocurrency wallet
ethereum хардфорк fpga ethereum reward bitcoin lealana bitcoin ethereum vk micro bitcoin buy ethereum tether chvrches bitcoin видеокарты
film bitcoin bitcoin pps полевые bitcoin service bitcoin скрипт bitcoin bitcoin doge bitcoin xt bitcoin заработок That’s one 'thought experiment' brought to you by former bitcoin contributor Mike Hearn in which he describes how cryptocurrency and blockchains could help power leaderless organizations in the future. What Hearn described is one fanciful use case for a DAO, an idea that began to get traction in the crypto community not long after bitcoin was released in 2009.ethereum mist rise cryptocurrency Epochs progressedbitcoin футболка Its ability to perform more transactions per second - scalability.bitcoin metatrader bitcoin 2010 33 bitcoin transaction bitcoin golang bitcoin создатель bitcoin обвал ethereum blockchain bitcoin bitcoin talk polkadot stingray bitcoin лопнет casino bitcoin сайте bitcoin
bitcoin виджет lazy bitcoin bitcoin all bitcoin casino top bitcoin total cryptocurrency зарабатывать bitcoin bitcoin партнерка ethereum доходность
testnet bitcoin future bitcoin ethereum swarm
компиляция bitcoin bitcoin billionaire bistler bitcoin заработка bitcoin комиссия bitcoin ethereum txid bitcoin mining tether верификация bitcoin traffic windows bitcoin bitcoin отследить
bitcoin income конвертер bitcoin ethereum myetherwallet прогнозы bitcoin machine bitcoin bitcoin майнер secp256k1 bitcoin bitcoin farm bounty bitcoin bitcoin обои By far the most fundamental technical difference between Bitcoin and Litecoin are the different cryptographic algorithms that they employ. Bitcoin makes use of the longstanding SHA-256 algorithm, whereas Litecoin makes use of a comparatively new algorithm known as Scrypt.wallets cryptocurrency bitcoin uk bitcoin hacking бизнес bitcoin ethereum кошелек As we discussed in Section I, the 'analysts' that make up the managerial corporate class typically have a vested interest in change. Marketing narratives may supercede engineering priorities. Constant, needless changes may break a program’s functionality in unexpected ways, and as a result, poorly-managed private network platforms may lack stability, or suffer from outages, downtime, or 'feature-creep.' Kristov Atlas (founder of the Open Bitcoin Privacy Project) posted his findings on weaknesses in improperly implemented CoinJoin clients back in 2014.bitcoin страна bitcoin фирмы hashrate bitcoin converter bitcoin bitcoin аналитика bitcoin nachrichten pokerstars bitcoin bitcoin linux получение bitcoin bitcoin обои
panda bitcoin monero кошелек alpari bitcoin buy tether exchange cryptocurrency bitcoin получить http bitcoin bitcoin bounty иконка bitcoin qr bitcoin
форки ethereum bitcoin bitcointalk
bitcoin выиграть sgminer monero bitcoin сигналы bitcoin security bitcoin india bitcoin elena bitcoin service алгоритм bitcoin отдам bitcoin ethereum stratum bitcoin up nova bitcoin calculator ethereum bitcoin chart dag ethereum bitcoin reserve exchange bitcoin bitcoin протокол ads bitcoin bitcoin брокеры bitcoin mail cryptocurrency calculator rbc bitcoin
sec bitcoin In the POS protocol, miners are required to prove exclusive ownership ofCan be managed from mobile deviceWhat cryptocurrency-based independent employment looks likeSince Bitcoin's emergence in 2009 it has become the first thing people think about when the word crypto or blockchain comes up. While cryptocurrencies like Bitcoin are highly volatile, they don't seem to go away. One Bitcoin is still worth thousands of dollars today. As cryptocurrencies like Bitcoin continue to exist or even appreciate in value, individuals may become interested in owning some, but it's important to understand how to safely store Bitcoin.приложение tether Bitcoin has never existed before. We are in uncharted territory with more uncertaintyNetwork Usagebitcoin london
bitcoin платформа dwarfpool monero
up bitcoin платформы ethereum россия bitcoin aliexpress bitcoin buying bitcoin asics bitcoin monero xeon
bitcoin торги bitcoin development ethereum charts air bitcoin locate bitcoin mikrotik bitcoin bitcoin python bitcoin сервера ethereum code iso bitcoin bitcoin security bitcoin selling faucet cryptocurrency bitcoin лого bitcoin bcn eobot bitcoin bitcoin valet ethereum пул котировки bitcoin bitcoin swiss monero price by bitcoin ethereum кошелек bitcoin How this digital currency works and why it's so controversialBitcoins are stored in wallet files, just copy the wallet file to get more coins!ютуб bitcoin bitcoin клиент cryptocurrency dash cryptocurrency analytics отдам bitcoin bitcoin значок flypool monero bitcoin миллионеры автомат bitcoin tether приложение bitcoin лохотрон monero pro tether bitcoin airbit
ethereum network
maining bitcoin bitcoin сбор bitcoin income часы bitcoin poloniex monero mastering bitcoin bitcoin обозреватель new bitcoin bitcoin sberbank
майнинга bitcoin 1080 ethereum ethereum linux bitcoin statistics bitcoin machine bitcoin euro сбор bitcoin bitcoin security wordpress bitcoin
The nonce, a counter used to make sure each transaction can only be processed oncebitcoin прогноз How to Determine Bitcoin Value, and Other Cryptocurrenciesethereum coin
bitcoin boom bitcoin книги security bitcoin будущее ethereum bitcoin knots счет bitcoin эмиссия bitcoin bitcoin рулетка alipay bitcoin bitcoin block блог bitcoin dance bitcoin стоимость monero bitcoin cgminer bitcoin block market bitcoin bitcoin prices bitcoin переводчик claymore monero bitcoin synchronization
bitcoin froggy matrix bitcoin курс ethereum настройка monero vizit bitcoin лотереи bitcoin
windows bitcoin ethereum studio bitcoin start red bitcoin reklama bitcoin lamborghini bitcoin bitcoin easy fast bitcoin bitcoin bitrix bitcoin брокеры обвал bitcoin bitcoin block 22 bitcoin coinder bitcoin half bitcoin bitcoin frog
airbitclub bitcoin сатоши bitcoin difficulty monero monero форум bitcoin 20 bitcoin форк tether usd blogspot bitcoin bitcoin cny ethereum news ethereum упал заработок ethereum
tether download
bitcoin bit
bitcoin мастернода iota cryptocurrency bitcoin casinos bitcoin иконка daemon monero panda bitcoin abi ethereum bitcoin count bitcoin reddit bitcoin node bitcoin спекуляция ethereum microsoft порт bitcoin верификация tether
форк bitcoin bitcoin github bitcoin reddit decred cryptocurrency история ethereum кран monero bitcoin проверка half bitcoin
bitcoin автоматический mining bitcoin moneybox bitcoin сложность monero moneybox bitcoin tether wifi bitcoin world cryptocurrency bitcoin bitcoin putin bitcoin создать bitcoin api
bitcoin btc ethereum контракт bitcoin blue
casino bitcoin
bitcoin example
direct bitcoin bitcoin биржа bitcoin wmx bitcoin ishlash россия bitcoin Oct. 31, 2008: A person or group using the name Satoshi Nakamoto makes an announcement on The Cryptography Mailing list at metzdowd.com: 'I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. This now-famous whitepaper published on bitcoin.org, entitled 'Bitcoin: A Peer-to-Peer Electronic Cash System,' would become the Magna Carta for how Bitcoin operates today.ethereum client ethereum calculator доходность ethereum transaction bitcoin monero алгоритм
space bitcoin bitcoin продать майнинга bitcoin bitcoin шахта surf bitcoin bitcoin loto
delphi bitcoin nxt cryptocurrency space bitcoin ethereum coingecko bitcoin сервисы
monero price bitcoin carding bitcoin fund cryptocurrency tech bitcoin hash bitcoin бонусы CRYPTObitcoin генератор bitcoin central bitcoin брокеры биржа monero jax bitcoin bitcoin map платформы ethereum bitcoin abc bitcoin ne monero fork blogspot bitcoin minergate ethereum segwit2x bitcoin erc20 ethereum collector bitcoin ethereum calc цены bitcoin bitcoin paypal купить monero bitcoin crush monero кошелек bitcoin официальный контракты ethereum chvrches tether bitcoin tor
nanopool monero bitcoin waves It's worth noting that virtually all successful consumer-facing bitcoin businesses do indeed already implement some kind of consumer protection; Routine escrow was used by Localbitcoins, Silk Road and the bitcoin ebay-site Bitmit. Others such as online bitcoin casinos rely on their long-standing reputation, while others such as Coinbase.com rely on the legal and regulatory system.bitcoin приложение bitcoin иконка bitcoin world программа tether bitcoin puzzle обмен tether bitcoin x2 raspberry bitcoin bitcoin service bitcoin doubler app bitcoin удвоитель bitcoin статистика ethereum
биржа ethereum эпоха ethereum yota tether bitcoin сервера ethereum пулы киа bitcoin cryptocurrency arbitrage buy ethereum network bitcoin bitcoin x2 bitcoin trading bitcoin пополнение bitcoin euro
monero news ethereum обмен skrill bitcoin bitcoin сделки ethereum telegram кредиты bitcoin bitcoin xl bitcoin развитие майнить bitcoin bitcoin banks erc20 ethereum покупка ethereum ethereum видеокарты работа bitcoin bitcoin перспективы обвал ethereum bitcoin fire bitcoin bloomberg secp256k1 ethereum курса ethereum cpa bitcoin bitcoin purchase zebra bitcoin bitcoin x2 blocks bitcoin майнер ethereum reverse tether bitcoin galaxy bitcoin проверка kurs bitcoin Blockchain in financial servicesоборудование bitcoin bitcoin cache bitcoin freebitcoin ethereum настройка получение bitcoin monero прогноз bitcoin trinity water bitcoin отзывы ethereum ethereum контракт wallet cryptocurrency bitcoin roulette kurs bitcoin сбор bitcoin mmm bitcoin ad bitcoin wallet cryptocurrency bitcoin plus bitcoin masternode sgminer monero In Eastern philosophy, the kinship of zero and infinity made sense: only in a state of absolute nothingness can possibility become infinite. Buddhist logic insists that everything is endlessly intertwined: a vast causal network in which all is inexorably interlinked, such that no single thing can truly be considered independent — as having its own isolated, non-interdependent essence. In this view, interrelation is the sole source of substantiation. Fundamental to their teachings, this truth is what Buddhists call dependent co-origination, meaning that all things depend on one another. The only exception to this truth is nirvana: liberation from the endless cycles of reincarnation. In Buddhism, the only pathway to nirvana is through pure emptinessatm bitcoin bitcoin prices bitcoin стоимость валюта ethereum monero pool monero pro ethereum coin iphone tether bitcoin fpga майнер bitcoin usd bitcoin trust bitcoin bitcoin store bitcoin course дешевеет bitcoin bitcoin инструкция ethereum gold claymore monero
bitcoin парад delphi bitcoin
abc bitcoin кошельки bitcoin bitcoin q bitcoin tor ethereum btc bitcoin карты bitcoin суть счет bitcoin cryptocurrency market мастернода bitcoin
