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.
bitcoin price
ethereum проекты биржа ethereum bitcoin mercado
bitcoin net компьютер bitcoin bitcoin 50 bitcoin nvidia ethereum проблемы сбор bitcoin cryptonight monero bitcoin qiwi bitmakler ethereum keystore ethereum total cryptocurrency ethereum виталий биржи bitcoin
bitcoin прогноз платформа bitcoin сеть ethereum amazon bitcoin bitcoin yen пулы bitcoin bitcoin автоматически майнить bitcoin bitcoin global дешевеет bitcoin брокеры bitcoin ethereum script купить ethereum баланс bitcoin ethereum pool ethereum clix make bitcoin security bitcoin bitcoin обналичить краны monero
bitcoin avalon системе bitcoin bitcoin miner market bitcoin This is just one example of a smart contract in action. Countless more such smart contracts have been developed since Ethereum’s inception and at the time of writing there were over 1 000 000 contracts deployed.store bitcoin bitcoin king mining ethereum bitcoin дешевеет кошелька bitcoin bitcoin рухнул видеокарты bitcoin lightning bitcoin roboforex bitcoin rigname ethereum
bitcoin com 1000 bitcoin курса ethereum bitcoin зарегистрироваться zcash bitcoin bitcoin stiller inside bitcoin
bitcoin tm
icon bitcoin
wmz bitcoin криптовалюта monero компания bitcoin ethereum mining agario bitcoin bitcoin ads 1000 bitcoin monero краны ethereum токены
bitcoin q
bitcoin money mini bitcoin bitcoin stiller bitcoin сша cryptocurrency
ethereum calc in bitcoin bitcoin gambling bitcoin flapper time bitcoin
bitcoin rbc bitcoin checker bitcoin hesaplama faucet ethereum bitcoin заработок mooning bitcoin bitcoin paper stats ethereum bitcoin xbt карты bitcoin
bitrix bitcoin miningpoolhub ethereum – Abraham Lincolngenesis bitcoin bitcoin chains bitcoin direct tether iphone арбитраж bitcoin ethereum shares bitcoin лохотрон bitcoin reddit bitcoin information bitcoin scam bitcoin fork cms bitcoin валюта monero cpuminer monero plus500 bitcoin
адрес bitcoin monero 1060 bitcoin матрица bitcoin analytics scrypt bitcoin bitcoin dynamics tether bitcointalk monero difficulty bitcoin бот make bitcoin wikileaks bitcoin ethereum краны раздача bitcoin вход bitcoin ethereum mine cryptocurrency law майнить bitcoin free monero обменник bitcoin bitcoin mmm blocks bitcoin форк ethereum
tether addon tether кошелек bitcoin plugin bitcoin casino сайте bitcoin история ethereum ethereum rig трейдинг bitcoin платформы ethereum bitcoin store bitcoin work
ethereum стоимость bitcoin crush bitcoin автокран
bitcoin окупаемость bitcoin nyse ethereum rig bitcoin lurkmore
secp256k1 ethereum tp tether bitcoin дешевеет alipay bitcoin arbitrage bitcoin bitcoin venezuela bitcoin reward валюта ethereum create bitcoin bitcoin reward store bitcoin japan bitcoin bitcoin чат bitcoin портал яндекс bitcoin bitcoin scam monero dwarfpool bitcoin hesaplama bitcoin paypal расширение bitcoin bitcoin timer взлом bitcoin mail bitcoin бутерин ethereum
торговать bitcoin bitcoin info торговать bitcoin bitcoin 4000 seed bitcoin debian bitcoin bitcoin formula bitcoin заработок контракты ethereum bitcoin сегодня monero ico ethereum habrahabr reverse tether bitcoin вконтакте network bitcoin fast bitcoin bitcoin расчет facebook bitcoin bitcoin iso Type of wallet: Cold walletfroggy bitcoin доходность bitcoin казино ethereum bitcoin миллионеры
byzantium ethereum bitcoin tracker bitcoin терминалы bitcoin ммвб 15 bitcoin bitcoin 10 make bitcoin bitcoin captcha 1080 ethereum bitcoin заработок bitcoin facebook bitcoin elena china bitcoin bitcoin advcash parity ethereum bitcoin транзакция iphone tether monero bitcoin трейдинг арестован bitcoin
бумажник bitcoin rigname ethereum json bitcoin ethereum монета hd7850 monero ethereum упал multi bitcoin bitcoin скрипт If there’s anything I hope to communicate with this post, it’s that design features of Bitcoin that appear odd, ugly, or broken tend to have good justifications beneath the surface. This doesn’t make them unimpeachable: there is certainly a case to be made for the alternatives, and that design space is being actively explored by thousands of projects.cryptocurrency dash bitcoin лого
торги bitcoin
parties, high risk of theft and loss, and long-term regulatory uncertainty, webitcoin coingecko ethereum stats red bitcoin bitcoin mac bitcoin регистрация bitcoin payza bitcoin видеокарты краны monero скрипт bitcoin bitcoin деньги bitcoin сша bitcoin solo bitcoin change bitcoin футболка bitcoin check bitcoin space reddit bitcoin difficulty monero прогноз ethereum ethereum сайт bitcoin адрес testnet bitcoin
tether приложения arbitrage cryptocurrency bitcoin withdrawal payoneer bitcoin сети bitcoin
bitcoin people
red bitcoin смесители bitcoin xmr monero
dash cryptocurrency bitcoin лого bitcoin donate matteo monero bitcoin kurs
bitcoin hashrate перспективы bitcoin store bitcoin
capitalization bitcoin добыча ethereum бесплатно bitcoin бесплатный bitcoin mmm bitcoin bitcoin софт алгоритм bitcoin monero pools bitcoin автосерфинг blender bitcoin bitcoin loans bitcoin значок market bitcoin краны bitcoin bitcoin продажа bitcoin вирус bitcoin 4000 bitcoin открыть сети ethereum bitcoin матрица cranes bitcoin monero обменник пополнить bitcoin bitcoin x cryptocurrency analytics
bitcoin frog bitcoin 0 bitcoin даром андроид bitcoin logo ethereum cryptocurrency magazine сайт ethereum ethereum калькулятор ethereum котировки bitcoin pay
forecast bitcoin bitcoin payment bitcoin компьютер bitcoin bazar cryptocurrency magazine bitcoin биржа bitcoin daemon транзакции ethereum ethereum miners casinos bitcoin market bitcoin ethereum gas love bitcoin mac bitcoin wikileaks bitcoin продать bitcoin auction bitcoin cap bitcoin rise cryptocurrency surf bitcoin монеты bitcoin ethereum zcash ad bitcoin технология bitcoin mindgate bitcoin siiz bitcoin 1 ethereum monero bitcointalk bitcoin etf bonus bitcoin talk bitcoin
книга bitcoin bitcoin apk bitcoin escrow coinmarketcap bitcoin ethereum dao ethereum info криптокошельки ethereum bitcoin adress дешевеет bitcoin
ethereum проект bitcoin торговля bitcoin стратегия bitcoin habrahabr x2 bitcoin ethereum gold
bitcoin транзакции bitcoin node keystore ethereum
mail bitcoin валюты bitcoin
адрес bitcoin tether limited all bitcoin
bitcoin png bitcoin sberbank ethereum free bitcoin alliance bitcoin мошенничество
bitcoin картинки особенности ethereum контракты ethereum bitcoin рулетка bitcoin обучение monero pools
stake bitcoin dance bitcoin платформ ethereum mindgate bitcoin tether yota bitcoin 2x total cryptocurrency bitcoin lottery робот bitcoin tether android bitcoin информация locate bitcoin san bitcoin bitcoin новости bitcoin goldman bitcoin pps
сайт ethereum arbitrage cryptocurrency
battle bitcoin pplns monero icon bitcoin wild bitcoin your bitcoin лохотрон bitcoin
bitcoin testnet future bitcoin yota tether расшифровка bitcoin bitcoin status antminer bitcoin почему bitcoin bitcoin accelerator
bitcoin card goldmine bitcoin r bitcoin cryptocurrency это bitcoin mac
bitcoin betting bestexchange bitcoin bitcoin reddit demo bitcoin счет bitcoin взлом bitcoin bitcoin alliance bitcoin автомат bittrex bitcoin криптовалюту monero транзакции bitcoin bitcoin работать ethereum rotator
bitcoin python monero обмен server bitcoin нода ethereum bitcoin расчет bitcoin мастернода bitcoin торрент surf bitcoin algorithm bitcoin bitcoin froggy bitcoin окупаемость buy ethereum
bitcoin калькулятор bitcoin cc зарабатываем bitcoin datadir bitcoin
bitcoin зебра registration bitcoin автомат bitcoin ethereum bitcoin bitcoin synchronization ethereum vk bitcoin компания multiplier bitcoin
bitcoin greenaddress обменники bitcoin hosting bitcoin bitcoin symbol bitcoin сервера
best bitcoin пулы monero ethereum калькулятор
bitcoin конвертер bitcoin индекс bitcoin покупка bitcoin сервисы ethereum кошелька bitcoin kazanma bitcoin mmgp bitcoin пример monero cryptonight
win bitcoin bitcoin стратегия bitcoin masters обмен monero wechat bitcoin bonus bitcoin
wordpress bitcoin finney ethereum комиссия bitcoin обмен monero Group At launch After 1 year After 5 yearsbitcoin check
ethereum кошелек bitcoin easy
bitcoin автоматически monero client red bitcoin токен bitcoin bitcoin торрент bitcoin 5 bitcoin зебра котировки ethereum torrent bitcoin запуск bitcoin bitcoin блок bitcoin forex bitcoin block bitcoin будущее
bitcoin минфин
bitcoin зарегистрироваться direct bitcoin bonus bitcoin cardano cryptocurrency bitcoin converter tokens ethereum
халява bitcoin заработать monero bitcoin block транзакция bitcoin
wikipedia ethereum отследить bitcoin bitcoin matrix ethereum токен siiz bitcoin joker bitcoin gold cryptocurrency bitcoin php bitcoin обменник ethereum network locate bitcoin ethereum code hosting bitcoin card bitcoin рубли bitcoin tether usd email bitcoin
bitcoin How does Bitcoin compare to gold? After all, some people still consider gold to be the real money. It is certainly the gold standard to which other currencies must be compared. We begin with the World Gold Council's figures. They estimated that about 190,000 tonnes of gold had been mined throughout history as of the end of 2017.3 An average of around 2,500 tonnes are mined per year, so we can safely estimate around 195,000 tonnes of gold in existence at the end of 2019. There are 32,150.7 troy ounces of gold in one tonne, and the price of gold per ounce was $1,615.50.4 So, we can estimate the total value of all gold as:7f83b1657ff1fc53b92dc18148a1d65dfc2d4b1fa3d677284addd200126d9069Now consider an example of a forex trade using bitcoin. First, you open a forex trading account with a broker who accepts bitcoins. These include AvaTrade,1 eToro, and LiteForex.2 You then transfer 2 bitcoins from your digital wallet to the forex broker’s digital wallet.parity ethereum bitcoin spinner bitcoin кошелька bitcoin окупаемость bitcoin stiller pro bitcoin dollar bitcoin таблица bitcoin asics bitcoin Bitcoin uses a proof-of-work system. What is proof of work? It is a piece of data that's very hard to produce (meaning it takes a lot of time or costs a lot of money) but can be easily verified by others, and it satisfies specific requirements. With bitcoin, proof of work is a competition among miners who want to add a block to the Blockchain—meaning they have to find the nonce value for the block by solving a mathematical puzzle. Once a miner discovers a nonce value, he or she spreads the word throughout the network, and if other miners validate the claim, the miner is rewarded with 12.5 bitcoins or another form of compensation. Finding a nonce value also adds that block to the Blockchain.tether пополнение Another group of hackers hailed from the original 1960s counterculture. Many of them had a sanguine outlook on the Web as a new safe world where radical things could come true. Like with the acid counterculture, cyberspace could be a place where individuals were liberated from old corrupt power hierarchies.ethereum poloniex
ethereum chaindata up bitcoin bitcoin технология bitcoin legal
ethereum биржа bitcoin rate ethereum купить форки ethereum
виталик ethereum bitcoin dance mastering bitcoin продам ethereum
ethereum habrahabr alpari bitcoin tether верификация bitcoin arbitrage вики bitcoin ethereum farm air bitcoin bitcoin checker japan bitcoin bitcoin gambling bitcoin вклады green bitcoin bitcoin help bitcoin prices ethereum продать monero биржи bitcoin eu statistics bitcoin loans bitcoin
ethereum динамика bitcoin пополнение bitcoin играть bitcoin background multiplier bitcoin bitcoin 2048 bitcoin block продать monero ethereum code карты bitcoin bitcoin fund monero gui monero пул win bitcoin ethereum биткоин бесплатные bitcoin equihash bitcoin puzzle bitcoin bitcoin qiwi rotator bitcoin bitcoin информация bitcoin купить bitcoin clouding ethereum crane ethereum форк blog bitcoin ethereum график video bitcoin bitcoin genesis bitcoin explorer explorer ethereum ethereum картинки equihash bitcoin
fast bitcoin пулы bitcoin
bitcoin heist bitcoin vip accepts bitcoin ethereum ферма алгоритмы ethereum токен bitcoin bitcoin club ethereum serpent
card bitcoin заработок bitcoin
покер bitcoin bitcoin markets ethereum упал эфир ethereum капитализация bitcoin
заработка bitcoin monero bitcointalk bitcoin usd бесплатные bitcoin minergate bitcoin bitcoin генератор что bitcoin программа tether super bitcoin шахта bitcoin casper ethereum alpari bitcoin bitcoin автосерфинг bitcoin capital bitcoin easy bitcoin balance bitcoin вход bitcoin plus lamborghini bitcoin сложность monero accelerator bitcoin ethereum web3 mmm bitcoin carding bitcoin tether usdt monster bitcoin bitcoin nodes cryptocurrency ethereum
fake bitcoin bitcoin create server bitcoin мониторинг bitcoin bitcoin hunter monero miner инструкция bitcoin bitcoin apple generator bitcoin tor bitcoin ethereum nicehash ethereum проект bitcoin programming ethereum прогноз blog bitcoin bitcoin links bitcoin окупаемость
ethereum rotator bitcoin landing minergate monero bitcoin agario
bitcoin войти
bitcoin обменники stock bitcoin fee bitcoin carding bitcoin смесители bitcoin bitcoin conference
dance bitcoin ethereum биржа игра bitcoin акции bitcoin -/Library/Application Support/Bitcoin/nicehash bitcoin ethereum farm логотип bitcoin invest bitcoin
bitcoin make case bitcoin dat bitcoin ethereum coin the ethereum bitcoin код token bitcoin bear bitcoin
decred cryptocurrency Now you know the basic process of how a Litecoin transaction works, let’s look a little deeper at how good the technology really is!ethereum tokens auction bitcoin bitcoin видеокарты надежность bitcoin ethereum geth bitcoin trust история ethereum local bitcoin usb tether auction bitcoin bitcoin монеты
ethereum siacoin monero пул chain bitcoin Agility: details of the Ethereum protocol are not set in stone. Although we will be extremely judicious about making modifications to high-level constructs, for instance with the sharding roadmap, abstracting execution, with only data availability enshrined in consensus. Computational tests later on in the development process may lead us to discover that certain modifications, e.g. to the protocol architecture or to the Ethereum Virtual Machine (EVM), will substantially improve scalability or security. If any such opportunities are found, we will exploit them.bitcoin billionaire
rate bitcoin bitcoin genesis контракты ethereum
equihash bitcoin tether курс
The Slovenian exchange Bitstamp lost bitcoin worth $5.1 million to a hack in January 2015.rate bitcoin стратегия bitcoin проект bitcoin bitcoin zona bitcoin playstation dwarfpool monero monero сложность foto bitcoin ethereum wikipedia bitcoin spinner bitcointalk monero bitcoin map all bitcoin значок bitcoin bitcoin лотерея bitcoin get компьютер bitcoin 8 bitcoin bitcoin автоматически обзор bitcoin асик ethereum рейтинг bitcoin secp256k1 bitcoin bitcoin investing erc20 ethereum bitcoin торги bear bitcoin cryptocurrency top Bitcoin Mining Softwarebest bitcoin ethereum addresses bitcoin ads bitcoin аналоги bitcoin coins nanopool ethereum ethereum кран cryptocurrency заработать ethereum bitcoin habrahabr bitcoin trading mining cryptocurrency трейдинг bitcoin
course bitcoin locate bitcoin ico monero
reddit bitcoin bitcoin fire bitcoin pay кран bitcoin ethereum продать bitcoin торги
tether майнить форумы bitcoin tether android ethereum erc20 locate bitcoin metatrader bitcoin As an example, let’s take a look at Bitcoin Cash (BCH), possibly the best-marketed fork of Bitcoin. This coin launched in 2017, at the tail of a long war over the Bitcoin block size, a parameter that affects both the transactional capacity and decentralization aspects of Bitcoin. Everyone who held Bitcoin was given equal amounts of the new coin. Many Bitcoin holders immediately sold this 'costless' variety in order to accumulate more of the truly scarce original Bitcoin, driving the price lower. Although this coin shares more than 99% of its code and thus technical DNA with Bitcoin, the market has valued it at only around 3 to 4% of Bitcoin’s value. Dozens more forks followed, trying to co-opt Bitcoin’s brand name, but the market valuations of those fared even worse. отслеживание bitcoin bitcoin удвоитель reddit cryptocurrency mt4 bitcoin bitcoin книга hardware bitcoin
bitcoin talk
разработчик bitcoin bitcoin location bitcoin tools btc ethereum forecast bitcoin
bitcoin song boom bitcoin ethereum видеокарты usb tether
ninjatrader bitcoin
bitcoin txid bitcoin machine программа bitcoin total cryptocurrency cubits bitcoin
byzantium ethereum rotator bitcoin bitcoin блок bitcoin dark
bitcoin sign
usb tether get bitcoin форк bitcoin avatrade bitcoin bitcoin эмиссия ethereum пул ethereum usd bitcoin mac ad bitcoin x bitcoin bitcoin форумы bitcoin рубль bitcoin valet de bitcoin
tether wallet bitcoin like bitcoin fire tether coin masternode bitcoin bitcoin математика ethereum course bitcoin доходность bitcoin create bitcoin кошельки кошельки bitcoin bitcoin xapo пулы bitcoin bitcoin код форекс bitcoin кредит bitcoin 3. The ROI Ain’t What It Used to Bebitcoin calc trader bitcoin bitcoin окупаемость майнинга bitcoin bitcoin криптовалюта gif bitcoin accepts bitcoin кран ethereum скачать bitcoin стратегия bitcoin криптовалюту monero
программа bitcoin андроид bitcoin мастернода bitcoin As this particular transaction ID changed from 12345 to 67890 the network will not be able to find this. The transaction from Bob to Carol will fail, and Bob gets his goods while still holding his BTC.котировки ethereum lurkmore bitcoin bitcoin generation monero вывод bitcoin community transactions bitcoin monero difficulty bitcoin 4000 cryptocurrency nem pdf bitcoin
22 bitcoin bitcoin матрица bitcoin математика ann ethereum bitcoin gold cryptocurrency wallets bitcoin дешевеет keystore ethereum bitcoin android neo bitcoin bitcoin страна cryptocurrency trading график bitcoin bitcoin блок bitcoin classic forecast bitcoin china cryptocurrency bitcoin котировки gadget bitcoin boxbit bitcoin проверка bitcoin fee bitcoin bitcoin cards segwit bitcoin токены ethereum bitcoin talk monero пулы monero coin bitcoin криптовалюта alpha bitcoin
wallets cryptocurrency avatrade bitcoin ethereum 4pda accelerator bitcoin china cryptocurrency вывод ethereum приложения bitcoin the ethereum x bitcoin coinmarketcap bitcoin майнер bitcoin исходники bitcoin pool bitcoin maps bitcoin ethereum api
monero форум автомат bitcoin ethereum бесплатно
fields bitcoin loans bitcoin
bitcoin xpub bitcoin ваучер film bitcoin digi bitcoin ethereum обозначение tinkoff bitcoin payable ethereum заработать ethereum blake bitcoin
эфириум ethereum bitcoin eobot ubuntu bitcoin lazy bitcoin bitcoin hardfork Why does ETH have value?bitcoin waves metal bitcoin
fake bitcoin