Digital currencies have many advantages: are cheaper, faster, safer, global, and more private than traditional credit cards and bank wires. In other words, digital currencies will prove to be as world-changing as the invention of the printing press and gunpowder. Digital currencies link together financial institutions and markets across the globe in a way that allows instantaneous value transfers with a mere fraction of the cost associated with traditional bank wires and credit cards. The architects of the new digital economy are busily at work creating new financial products and linking digital currencies to “old-world” financial networks, allowing you to easily convert your digital currencies to cash anywhere in the world. Here are some of the reasons that digital currencies are the best way to do business on or off the Net!
First advantage: Digital Currencies Are Cheaper!
Transaction costs using credit cards or PayPal (for example) range from 22% to 42%. International bank wires cost, on average, $43 to $73 using Western Union. Digital currencies allow transactions to take place from as low as 0.1% (GoldMoney), to 2% on the very high end (Standard Transactions). In other words, the cheapest digital currency on the Net allows online transactions for forty-five times less than credit cards.
Second advantage: Digital Currencies Are Faster!
The average credit card transaction can be reversed for three to six months after the sale takes place. This leaves merchants in a vulnerable position. Cheapskates reverse the charges on a regular basis against merchants who deliver the goods. This kind of theft drives up prices for everyone to cover the cost of lost goods and money due to fraudulent credit card use. Bank wires in-country take at least three days to clear. International bank wires can take up to two weeks to clear! Digital currencies solve these problems by allowing instantaneous and nonreversible transactions! For merchants, this means that all sales are final.
Third advantage: Digital Currencies Are International!
PayPal, for example, only works in the United States. In order for people outside the United States to sell their product or service on the Web, they have needed an international credit card merchant account. The problem is, outside the United States and Europe, merchant accounts can be difficult to obtain. This creates a barrier to entry that makes it harder for international entrepreneurs to offer their products and services to the world. Digital currencies solve this problem by allowing instantaneous transfers of money anywhere in the world!
Fourth advantage: Digital Currencies Are Safer!
Credit card fraud is becoming increasingly prevalent as hackers steal card numbers from computer networks, crooks root through your garbage and steal your identity, and other nefarious thieves devise ways to get your account number. Digital currencies offer a higher level of security than credit cards.
Fifth advantage: Digital Currencies Allow Person-to-Person Payments!
Digital currencies allow one thing that credit cards never will: person-to-person payments. As previously mentioned, PayPal is limited to the United States. So, what do you do when you want to buy a collector’s doll that you found in an online classified ad, but the owner lives in New Zealand and you live in the United States? Digital currencies allow you to spend your money to anyone else who has a digital currency account.
Most digital currencies are housed in “capital-friendly” jurisdictions with strict privacy protection laws. For someone to get your account information, they have to obtain a court order in the country where your digital currency is headquartered. This means that true crimes can be prosecuted, but your privacy will remain intact if you are just an average law-abiding customer. Think of it as guaranteeing yourself the right to “due process.” Furthermore, it is impossible to use digital currencies for money-laundering. You have to spend your national money (such as U.S. dollars) through an exchange agent in order to purchase digital currency in the first place. Because exchange agents all have accounts at banks with anti-money-laundering practices in place, this means that all money used to purchase digital currencies is theoretically “clean.
So, digital currencies are able to provide privacy to their customers, and still be able to guarantee that they are not being used for money laundering. Digital currencies are “orthogonal” to the traditional financial world. As long as all the money coming in and out goes through banks with anti-money-laundering practices in place, then money laundering is impossible. Furthermore, all of the digital currencies in business at this time are firmly committed to discouraging crime and money laundering, while at the same time protecting the privacy of their account holders. This means you can use digital currencies to do business with confidence that you are in good company! You can obtain a Standard Reserve Instant World Card or an e-bullion Debit Card and withdraw your digital currency from any ATM machine in the world as cash. But, because the cards are processed in an offshore jurisdiction, you can be assured that your privacy is protected. Because both of these companies are diligent in preventing money laundering, you can be assured that you are in good company
DJ’s Note: This article has been condensed for brevity. The entire article can be found here.
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