Bitcoin vs Traditional Payment Processors

[Reatim]

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 believe that they will adopt the advancement of technology for them to stay.

But they can deny as well?

Anyway about the OP ,I’m sure that traditional payment method will remain while bitcoin dominates the market,we cannot take all the users because the other generation don’t really tend to adopt the technology we have now,but the next generation in which our siblings will surely use full technology and by that time maybe traditional payments will totally disappear from our system

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[diahsw]

in my opinion it could have happened, all traditional payments will be eliminated and replaced with the system used to use bitcoin, but it still has to go through several stages and processes, because it's not easy, even we have to wait for quite a long time ..

[investor007]

Every day we observe that more people use Bitcoin and other cryptocurrencies in a decentralized way, for example, to send money from one country to another, however, the percentage of users is minimal, because there is still not enough infrastructure to meet the high demand and Financial services require security and speed, so people opt for the safe and familiar.

Little by little, cryptocurrencies are gaining ground and I do believe that the day will come when they will no longer depend on intermediaries.

[nasipadang]

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?

From the current value of bitcoin, I don't think bitcoin will replace traditional payment transactions. Blockchain adoption of technology I think it is likely, after a speech from Chinese president Xi Jinping, is the first step to the adoption of blockchain technology. Concepts like stable coins are more suitable in my opinion as a substitute for traditional payment transactions.

[Meowth05]

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?

From the current value of bitcoin, I don't think bitcoin will replace traditional payment transactions. Blockchain adoption of technology I think it is likely, after a speech from Chinese president Xi Jinping, is the first step to the adoption of blockchain technology. Concepts like stable coins are more suitable in my opinion as a substitute for traditional payment transactions.

Bitcoin will not definitely replace the traditional way of payment especially for now because we are not ready yet due to the fact that there are still some country that has no facilities to access crypto. Besides, cryptocurrencies especially Bitcoin will is not that good for payment due to the reason of stability. This requires a massive adaption in order to implement this  way of transaction.

[Zeke_23]

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?

From the current value of bitcoin, I don't think bitcoin will replace traditional payment transactions. Blockchain adoption of technology I think it is likely, after a speech from Chinese president Xi Jinping, is the first step to the adoption of blockchain technology. Concepts like stable coins are more suitable in my opinion as a substitute for traditional payment transactions.

Bitcoin will not definitely replace the traditional way of payment especially for now because we are not ready yet due to the fact that there are still some country that has no facilities to access crypto. Besides, cryptocurrencies especially Bitcoin will is not that good for payment due to the reason of stability. This requires a massive adaption in order to implement this  way of transaction.

We're still far from that dream. Replacing the current traditional way of payment will be a huge adjustment. Bitcoin as a primary source of payment will not be supported by lots of countries. It can only be another option but not as the primary option. Its volatility is the biggest struggle we can face if this will happen.

[fenixosup]

I dont think that crypto can replace fiat. We need really friendly regulation for this and big countries are not ready

[bryant.coleman]

IMO, the biggest drawback with Bitcoin is the high transaction fee and delays in getting confirmation. For example, with PayPal the fee is fixed and can be as low as $0.30. However, the transaction fee for Bitcoin is very volatile and it can vary from anywhere between $1 and $20 per transaction (depending on the congestion in the Blockchain network).

Also, PayPal transactions get confirmed within a few seconds (the same with Visa or Mastercard as well), and they have the ability to handle millions of transactions every hour. On the other hand, with Bitcoin you need to wait 10 minutes to 60 minutes to get the first confirmation. And even with the recent increase in block size, it may not be able to handle more than 10,000 transactions per hour.

[Irvinn]

IMO, the biggest drawback with Bitcoin is the high transaction fee and delays in getting confirmation. For example, with PayPal the fee is fixed and can be as low as $0.30. However, the transaction fee for Bitcoin is very volatile and it can vary from anywhere between $1 and $20 per transaction (depending on the congestion in the Blockchain network).

Also, PayPal transactions get confirmed within a few seconds (the same with Visa or Mastercard as well), and they have the ability to handle millions of transactions every hour. On the other hand, with Bitcoin you need to wait 10 minutes to 60 minutes to get the first confirmation. And even with the recent increase in block size, it may not be able to handle more than 10,000 transactions per hour.

I completely agree with you that Bitcoin has very big problems with the speed of transactions and with the price for each transaction.  But you need to take into account the fact that Bitcoin can serve as the most global payment system in the world, which at the same time gives greater security for data and funds for each user.  In addition, studies of the financial services market showed that in 2018, the volume of transactions in the Bitcoin network exceeded $ 3.3 trillion, which is six times more than PayPal and 16.5 times more than Western Union.

[Gotumoot]

Of course I believe that someday bitcoin will replace traditional payment processors, all we really need is adoption and full acceptance of bitcoin. But I know it's going to be a long time since it's been argued that bitcoin's volatile price will have a huge impact on stores. Hopefully this solution will be provided so that we can use our btc in other stores as well.

[bryant.coleman]

I completely agree with you that Bitcoin has very big problems with the speed of transactions and with the price for each transaction.  But you need to take into account the fact that Bitcoin can serve as the most global payment system in the world, which at the same time gives greater security for data and funds for each user.  In addition, studies of the financial services market showed that in 2018, the volume of transactions in the Bitcoin network exceeded $ 3.3 trillion, which is six times more than PayPal and 16.5 times more than Western Union.

The Bitcoin volumes are inflated, due to a large number of reasons. If you want to get accurate measurement, then you should look at the number of transactions included within each of the blocks. On average, anywhere from 1,000 to 2,000 transactions are being included in each of the blocks and the median number of blocks per hour is 6. Therefore we can assume that there are 6,000-12,000 transactions per hour. The absolute volume is inflated, because the exchanges move their coins every now and then.

[Digitalbitcoin]

If we consider Bitcoin as a payment processor there are many issues that can make bitcoin more hard to use as currency. But at the same time some other altcoins offering seamless payment processes using blockchain technology.

According to the specification of Bitcoins, it takes up to 10 minutes to solve a block and verify the transaction and store it within the block. But while processing this transaction it requires fees to verify and store it within the blockchain node.

Bitcoin is still in testing phase, comparing to traditional payment processors it's bit complicated to common users to access and transact it.

[ttcsalam]

There is no comparison with Bitcoin. However, Bitcoin is far ahead of popularity in terms of these payments. Because of the trading advantages here. Moreover, as prices rise and prices rise, popularity is increasing day by day.

[Wintersoldier]

There is no comparison with Bitcoin. However, Bitcoin is far ahead of popularity in terms of these payments. Because of the trading advantages here. Moreover, as prices rise and prices rise, popularity is increasing day by day.

Basically the advantage of bitcoin is its huge market price and adoption, but if we will going to consider other factors, we can see that there are altcoins that is way better in terms of transaction speed and fee. But most of the times, people do not consider this since the market price is much important and they are as well gaining profit through investing onto it and at the same time, their regular payment processor.

[elisabetheva]

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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?

Although indeed progress has begun to be widely adopted to be able to do transactions with bitcoin. but it still needs more time to change people's habits with traditional payments. because many countries also do not fully support and recognize bitcoin as a legal payment.
it is possible that if everything is integrated there is a possibility that bitcoin can replace payments traditionally. when? still need time for that realization.

[Abiky]

IMO, the biggest drawback with Bitcoin is the high transaction fee and delays in getting confirmation. For example, with PayPal the fee is fixed and can be as low as $0.30. However, the transaction fee for Bitcoin is very volatile and it can vary from anywhere between $1 and $20 per transaction (depending on the congestion in the Blockchain network).

Also, PayPal transactions get confirmed within a few seconds (the same with Visa or Mastercard as well), and they have the ability to handle millions of transactions every hour. On the other hand, with Bitcoin you need to wait 10 minutes to 60 minutes to get the first confirmation. And even with the recent increase in block size, it may not be able to handle more than 10,000 transactions per hour.

Exactly. In Bitcoin's current state, we'll experience the inconvenience of high transaction fees and slow confirmation times. Luckily, the Lightning Network is being heavily tested in order to make cheap, instant transactions a reality. Only then, Bitcoin will be able to compete with the likes of PayPal, Visa, and other traditional payment processors. Of course, the Lightning Network might not be the perfect solution for scaling (since it'll reach its peak capacity at some point) but it can be improved over time. The Lightning Network with a slight increase in block size would allow Bitcoin to remain scalable and secure enough for the mainstream world to use.

Still though, Bitcoin is still much cheaper and faster than wire transfers. While sending a payment through a Bank may take days, Bitcoin's transactions settles within a few hours (depending on network congestion). Despite this, Bitcoin and traditional payment processors will part their separate ways as they're distinct from one another. Bitcoin will continue to be prominent in the decentralized world, while traditional payment processors will be the norm in centralized finance. This is true, since payment processors use Fiat as their underlying currency. And Fiat is still largely dominant within the mainstream world.

Nonetheless, time will tell us how both camps (Bitcoin vs traditional payment processors) will advance within the mainstream world. As long as people continue to use them for daily payments, they'll be here to stay for a long time. Just my opinion

[NeironixNV]

I agree with you, Bitcoin is integrating more and more into our real life every year, more and more Bitcoin ATMs are distributed all over the world. Bitcoin is gaining the community and improving its blockchain. Miners do not go anywhere and even improve their capacities and maintain the working capacity of the network.