Digital currency is not a new kind of currency. It has been proposed and has been worked on from the early ’80s. Digital currencies have a lot of attributes that are similar to physical currencies. The major difference is that while physical currencies take some time before its transactions are done, digital currencies allow for instant transfer of ownership and transactions that are immediate. Digital currencies are not physical in nature and can only be owned using electronic wallets and computers which have to be internet enabled. Digital currencies just like normal currencies can be used in the purchasing of goods and services.
• Chargebacks: A chargeback is a guaranteed way to lose money. The kinds of clients we have today are always looking for ways to get back to the sellers. When it comes to credit cards, you will certainly end up losing to fraudsters once in a while. Then there are the customers who return goods after a period with claims that the goods are faulty and expect a full return of their money back. When Bitcoin and other cryptocurrencies is used for purchases, chargebacks are nonexistent. The sale of a good is complete when you get the transaction details from the customer.
• Lower Transaction Fees: We all know just how expensive and sometimes irritating credit card charges can be. Now factor in international usage and one could just end up annoyed. Why pay charges of up to 5% when with the digital currencies one ends up paying a lot less. Using Bitcoin, Ethereum, Blockchain, and other digital currencies guarantee to pay a lower rate in charges. Sometimes there are even zero charges when you transact business or shop using digital currencies.
• Promotes Trust: The use of digital currencies helps in promoting trust between you and your customers. Your customers’ minds are peace because their financial details are not at risk of being exposed or being stolen. The truth is even the fortune 500 companies have had issues of having their clients’ financial details stolen or cases of these companies being hacked but with digital currencies, it’s a definite NO. Customers using digital currencies always get an encrypted and temporary code for that particular transaction. This helps in making the client feel more comfortable because none of their financial details are exposed.
• Faster receipt of funds: Now apart from having to pay extra charges using physical currencies and credit cards when doing transactions and transfers, one now has to wait for a certain amount of time before that transaction is processed or the transfer received by the beneficiary. Digital currencies guarantee that transactions and transfers are done within a fraction of the time a legal financial institution would use.
• Easier to transact business worldwide: Making use of digital currencies places your business in the global eye. It means your business is poised to transact with anyone in the world and receiving money for goods and services rendered becomes a lot easier. This also helps in increasing the volume of business that you can do thereby also increasing the rate of profit that you make.
• Create a name for yourself in the digital community: Making your business available in such a way that your goods and services can be paid for in digital currencies endears you a lot more to the digital community. You will get an increase in the volume of sales because of the increase of patrons in the digital community.
• As an investment: Trading in digital currencies is highly lucrative and also an excellent way to save or store money. These currencies are limited in quantity and are regulated by their internal algorithms so one is sure that it wouldn’t fluctuate abnormally. Also saving cash as a digital currency reduces the risk of being robbed or having your bank account hacked or your credit card details stolen.
