Bitcoin vs Traditional Payment Processors

[Abiky]

It's been a decade since Bitcoin emerged as a decentralized digital currency for the people. While it's no secret that Bitcoin and other cryptocurrrencies have some drawbacks, they're still a great alternative to Fiat when it comes to making payments without a centralized entity in charge of our funds.

With latest advancements such as DAGs, smart contracts, Layer-Two scaling solutions, Dandelion Protocol, Zero Knowledge Proofs, and more, it's becoming more evident that crypto will someday replace traditional payment processors like PayPal, Apple Pay, and Android Pay. Yet, Blockchain technology is still struggling with user adoption and regulatory compliance.

Nonetheless, do you believe that there's hope for Bitcoin to beat traditional payment processors or will those same payment processors adapt to the Blockchain in the future?

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[Artemis3]

It's been a decade since Bitcoin emerged as a decentralized digital currency for the people. While it's no secret that Bitcoin and other cryptocurrrencies have some drawbacks, they're still a great alternative to Fiat when it comes to making payments without a centralized entity in charge of our funds.

With latest advancements such as DAGs, smart contracts, Layer-Two scaling solutions, Dandelion Protocol, Zero Knowledge Proofs, and more, it's becoming more evident that crypto will someday replace traditional payment processors like PayPal, Apple Pay, and Android Pay. Yet, Blockchain technology is still struggling with user adoption and regulatory compliance.

Nonetheless, do you believe that there's hope for Bitcoin to beat traditional payment processors or will those same payment processors adapt to the Blockchain in the future?

Adoption. All we need is the receiver to accept directly bitcoin, then we can make the transaction directly without all those intermediaries taking extra fees along the way. Regulation is an obstacle because governments could go after merchants and employers, but this tends to work better across borders where they have little control.

If i'm given the choice, i pick Bitcoin vs all the aforementioned. Perhaps we could add LN for certain types of micro-transactions (the infamous coffee).

Another kind of offchain transaction would be Litecoin, as this also has segwit which allows direct exchange between peers.

[Yakamoto]

It's been a decade since Bitcoin emerged as a decentralized digital currency for the people. While it's no secret that Bitcoin and other cryptocurrrencies have some drawbacks, they're still a great alternative to Fiat when it comes to making payments without a centralized entity in charge of our funds.

With latest advancements such as DAGs, smart contracts, Layer-Two scaling solutions, Dandelion Protocol, Zero Knowledge Proofs, and more, it's becoming more evident that crypto will someday replace traditional payment processors like PayPal, Apple Pay, and Android Pay. Yet, Blockchain technology is still struggling with user adoption and regulatory compliance.

Nonetheless, do you believe that there's hope for Bitcoin to beat traditional payment processors or will those same payment processors adapt to the Blockchain in the future?

I think that there's a chance that Bitcoin (and cryptos in general) have a high chance of replacing traditional forms of payment provided that they become as fast as traditional payment methods currently and have a strong community push coupled with a large-scale societal adoption, for whatever reason. I think that, while everything else can basically be up in the air for whether or not it will be useful, the blockchain technology will probably be the biggest thing to come out of the entire crypto community. I don't know if I can hope that cryptos overwhelm traditional payment mediums, but it would be a good shakeup for the economy at large. It might finally get us past the fiat system we have now and get people earning money which won't be inflated away.

[pooya87]

bitcoin will replace all these traditional online payment processors such as Paypal, Apple pay,... soon and it won't matter if they adopt blockchain technology themselves. for example even if Paypal turned into a token it still wouldn't change anything about its replacement by bitcoin because bitcoin is decentralized and it also doesn't have the huge disadvantage of them which is charge back ability.

[CryptoBry]

Yet, Blockchain technology is still struggling with user adoption and regulatory compliance. Nonetheless, do you believe that there's hope for Bitcoin to beat traditional payment processors or will those same payment processors adapt to the Blockchain in the future?

Bitcoin is still never perfect and there are many things that need improvement especially in the face of many challenges of the modern financial system. One, the transaction time is still not on par with the best of the world can offer but continuous research and testing on this aspect is ongoing. I guess we should always consider Bitcoin as a work in progress. There will always be obstacles and setbacks along the way but there is no question that the future belongs to cryptocurrency. Soon even traditional institutions will be coming up with their own pseudo-cryptocurrency and this can be the big testament of the effectiveness of Bitcoin. One major concern I have with Bitcoin is the power needed for its mining and confirming operation...maybe there must be ways to lessen this electric demand because remember we are supposed to be in the age where environmental concerns are valid issues the global village has to address heads-on.

[dothebeats]

In large transactions, yes, bitcoin could be useful and viable to move funds around easily, but if we're talking about instant and fast payments, other cryptocurrencies might be useful and sort of preferable in those situations. Of course, current payment processors would surely adapt the technology embedded on different blockchains and better themselves, creating a payment ecosystem with wider options and safe alternatives for the consumers to use.

[d5000]

PayPal, Apple Pay, and Android Pay.

These three are actually quite different. Apple Pay and Google/Android Pay are only systems to deal with credit and debit cards using smartphones and NFC.  PayPal, on the other hand, is - in addition to offer a credit card interface - a kind of "online bank". So it's actually a bit more similar to what Bitcoin offers.

Can Bitcoin replace these credit-card-based systems? It is certainly a challenge. For example, for merchants like hotel owners credit cards have many benefits which Bitcoin can only offer in a very limited way. You can reserve payments without actually making the payment, or offer automatic refunds - that would, if implemented in Bitcoin, need at least, a pretty complicated contract.

NFC-based processors whose only purpose is to not having to carry the debit/credit card with you are more simpler to replace. NFC-based wallet and Point-of-sale systems would, however, be needed (it would actually be easiest if Apple and Google incorporate BTC to their payment processors). And then there is Bitcoin's notorious volatility, which is limiting "direct adoption" by merchants because they have to take the risk of losses when the price goes down.

I think volatility is the biggest obstacle right now, the other ones are solvable with technical innovations, most of them are already possible but lack adoption.

[Ayiranorea]

bitcoin will replace all these traditional online payment processors such as Paypal, Apple pay,... soon and it won't matter if they adopt blockchain technology themselves. for example even if Paypal turned into a token it still wouldn't change anything about its replacement by bitcoin because bitcoin is decentralized and it also doesn't have the huge disadvantage of them which is charge back ability.

Yes, this will happen as people are much aware about the third-party services that control the money of the users. With bitcoin we're eliminating the third party involved. Traditional payments have come up with better accessibility than what we have with cryptocurrency transaction services. When the adoption of cryptocurrency goes high people will surely prefer bitcoin for every needs, and until then traditional fiat and traditional payment processors will serve the common people.

[CryptoBry]

In large transactions, yes, bitcoin could be useful and viable to move funds around easily, but if we're talking about instant and fast payments, other cryptocurrencies might be useful and sort of preferable in those situations. Of course, current payment processors would surely adapt the technology embedded on different blockchains and better themselves, creating a payment ecosystem with wider options and safe alternatives for the consumers to use.

I am looking forward to the time when consumers will have wider choices as far as moving funds and similar services are concerned. I am also thinking that big payment processors which command the biggest shares of the market will one day introduce their own "Bitcoin-like platform" and see how people will be reacting into it. Definitely, these platforms can never be decentralized and can never be like Bitcoin but with their financial muscles intact these firms can market their offerings to the global market effectively. Bitcoin has no such marketing strategy as of press time.

[libert19]

It's been a decade since Bitcoin emerged as a decentralized digital currency for the people. While it's no secret that Bitcoin and other cryptocurrrencies have some drawbacks, they're still a great alternative to Fiat when it comes to making payments without a centralized entity in charge of our funds.

With latest advancements such as DAGs, smart contracts, Layer-Two scaling solutions, Dandelion Protocol, Zero Knowledge Proofs, and more, it's becoming more evident that crypto will someday replace traditional payment processors like PayPal, Apple Pay, and Android Pay. Yet, Blockchain technology is still struggling with user adoption and regulatory compliance.

Nonetheless, do you believe that there's hope for Bitcoin to beat traditional payment processors or will those same payment processors adapt to the Blockchain in the future?

Adoption. All we need is the receiver to accept directly bitcoin, then we can make the transaction directly without all those intermediaries taking extra fees along the way. Regulation is an obstacle because governments could go after merchants and employers, but this tends to work better across borders where they have little control.

If i'm given the choice, i pick Bitcoin vs all the aforementioned. Perhaps we could add LN for certain types of micro-transactions (the infamous coffee).

Another kind of offchain transaction would be Litecoin, as this also has segwit which allows direct exchange between peers.

Wondering why there was no mention of fee-less cryptos? They are instant and fee-less, they are much better suitable for adoption.

[pushups44]

The development and pace of the Lightning Network will dictate if it becomes a viable alternative to current payment processors. If the Lightning Network makes very big progress over the next few months and perhaps years, I could see some countries embracing it instead of their unstable fiat currencies. It could also drive down costs for online merchants.

[manok jepang]

The relationship between Bitcoin and traditional currencies is a complex one. Bitcoin seeks to undermine the traditional way of dealing with money, so Bitcoin versus traditional money is a natural opposition. Over the history of humanity, money took many forms. There was barter, physical objects like rocks or shells, precious metals, bank notes, paper bills, digital money, and finally decentralized digital currencies like Bitcoin. Many people call Bitcoin the next step in the evolution of money. Because we have never had money like Bitcoin before, it's natural to question concepts and compare them to traditional currencies.

[sunsilk]

I'd rather say that those traditional payment processors would love to adopt bitcoin. They can't beat bitcoin but people can jump to bitcoin rather than choosing their service if its more convenient to most.

In that case, they had to do the best choice that they can and that is to retain their customers and adopt bitcoin itself. Service fees for traditional payment are much higher than the miners fee that you had to pay when paying someone w/ bitcoin.

[kingpin4321]

Well if it comes to having a battle  between bitcoin vs traditional payment processor in terms of payments and transactions bitcoin would surly come out on top
Bitcoin offers more customer friendly advantages over the  traditional means and it's not controlled by the government

[Kakmakr]

Until people fully understand the risks involved with "centralized" payment processors, it would not mean anything to them to switch over to other new payment methods like Bitcoin. It only becomes evident when these centralized processors drop the ball by misusing their powers and/or forcing people to abide by their rules.

We saw what happened when some payment options used their "centralized" power to push political agendas with the banning of payments to Wikileaks and how these people were forced to look for other alternatives like Bitcoin. <Same thing happened with Backpage". 

[Ailmand]

If we are talking about future, sure. With technology and it's non-stop development cryptocurrency will fit to replace or become fully adapted as an alternative to fiat. If we compare bitcoin against traditional payment process, bitcoin has a lot of advamtage over traditional payment since it removes the need of mifdle-man, making the process quicker, convenient, and with lesser fees.

[traderethereum]

I think it's not about beating traditional payment processors or not, but I guess that bitcoin will work together with the traditional payment processors so people can have more payment processors option.
So far, people need to pay a bigger fee when they make a transaction especially if they make a transaction with their bank.
The existing of bitcoin cover the fee problem and I think bitcoin will be used as the next payment processors in the future and it will help the traditional payment processors that we already know.

[Haunebu]

If we are talking about future, sure. With technology and it's non-stop development cryptocurrency will fit to replace or become fully adapted as an alternative to fiat. If we compare bitcoin against traditional payment process, bitcoin has a lot of advamtage over traditional payment since it removes the need of mifdle-man, making the process quicker, convenient, and with lesser fees.

Hilarious. Why in the world do you people think that BTC will effectively replace FIAT completely? Over optimism and silliness at its finest. Everyone need to understand that BTC was meant to serve as an alternate payment option to FIAT, gold etc and nothing more at the end of the day.

[talkbitcoin]

it is already happening!
the only difference is that since bitcoin is a completely new and different technology it takes much longer to reach mass adoption. also since there is a lot of FUD against bitcoin, it makes the mass adoption that much harder to happen. so the process has become very slow but it is still happening because it can not be stopped.

[Afnan_faizah]

It's been a decade since Bitcoin emerged as a decentralized digital currency for the people. While it's no secret that Bitcoin and other cryptocurrrencies have some drawbacks, they're still a great alternative to Fiat when it comes to making payments without a centralized entity in charge of our funds.

With latest advancements such as DAGs, smart contracts, Layer-Two scaling solutions, Dandelion Protocol, Zero Knowledge Proofs, and more, it's becoming more evident that crypto will someday replace traditional payment processors like PayPal, Apple Pay, and Android Pay. Yet, Blockchain technology is still struggling with user adoption and regulatory compliance.

Nonetheless, do you believe that there's hope for Bitcoin to beat traditional payment processors or will those same payment processors adapt to the Blockchain in the future?

Of course I am sure it will happen. I am sire that even youtuber will prefer like to be paid using cryptochrrency because there is no limitation or freezing account and itis faster too. I heard many people complain about paypal restrictness rule. I am sure that blpckchain technology is a great problem solver for our digital transactions.