When cryptocurrencies appeared over a decade ago, some experts have stated that this concept will change the way we do business in the future. At the same time, a high percentage of the public was pretty skeptical about these claims. We have all seen these scenes in Sci-Fi movies from the seventies and eighties where some sort of digital currency was used.
So, many weren’t surprised when this idea was introduced to the public. Nevertheless, they weren’t sure that this is possible with the technology we have in this day and age. As you know, this is something that slowly starts to become a reality. We can see that even some countries, like El Salvador, have adopted Bitcoin as a completely legit method of payment within its borders.
At the same time, a lot of companies have also decided to make the same move. As a result of this wide adoption, the value of BTC has skyrocketed in the last couple of years. So, the next question is whether crypto wallets will replace credit cards at some point? There are a lot of different elements that can point to the outcome going either of these ways. But, let’s see what we know about it in 2022.
What are the Differences in Transactions?
Before anything, it is important to take a look at some differences between these two sorts of transactions.
1. Credit Card Transactions
Without any doubt, credit cards represent a huge chunk of our everyday life. We have adjusted to these conditions a long time ago. We all know that these transactions can take a couple of days before they can perform completely. The reason is that all of them need to be authorized by the bank that serves as a middle man in this business. Just think about how many times you need to wait until Monday.
When you think about it, the banks and their staff do not work during weekends. That’s why many people see that this is a pretty big problem with them being ineffective in most cases. While some advancements have been recently implemented in this concept, there are still many faults. Still, people are adjusted to it. So, changing the perspective to something new can be quite a hard thing to do.
2. Crypto Transactions
With crypto transactions, you can see that the concept is widely different. For instance, these will be performed in one day in a vast majority of cases. The average time you will need to wait is not certain. However, you can count that it will be done within a day. When you compare it to the previous concept, you will see that the process will be much shorter.
Why is that? Well, there is no middleman between the two parties. Immediately, the time needed for its completion will be much shorter. Contrary to the previous concept, you will not need to provide any relevant personal information. Meaning, you can stay anonymous during the whole process. Many would say that this is the most important aspect future crypto owners need to be aware of. If you want to check some crypto banks that have erased the concept of middle-man, check Crypterium.
The Benefits of Crypto Wallets
Now, let’s check the benefits of crypto wallets.
1. Reduced Costs
Since no middle-man will provide their services during transactions, you can see that the fees you will need to pay for each of them will not be as high. For instance, an average transaction of this sort will not require more than 6%. Still, it depends on the country you live in. Nevertheless, they can’t be higher than this amount, you can be sure of that.
These reduced costs will be especially helpful in situations when you order something from a certain online shop frequently. Knowing that only a small percentage of the fee will be required is certainly helpful. That’s why you will have a chance to save much more money on your accounts down the road. With some other payment methods, this percentage is much higher.
We’ve mentioned the fact that you will not be required to submit any personal information when making these transactions. The only info you will need is the address where you want to send them, and nothing more than that. Not only that it will make it possible to stay anonymous, but your finances will also be much more secure. Meaning, no one can hack it and find all about this info.
We know that there are many uncertainties about other online payment methods since they require this sort of information to work. Plus, someone who wants to have an insight into this sort of information will not need to invest a lot of time to make it work, if that person is competent, that is.
Above all benefits, we would say that convenience is the most important one. For instance, you will not need to go to the bank whenever you want to send some. Instead, you can perform all these tasks from the comfort of your home, with your mobile device. Some would argue that we have e-banking these days, but that concept doesn’t include the previous two benefits we’ve mentioned.
Not to mention that you will send or receive the funds in the shortest period as it is possible. With the adoption rate that occurs right now, you can perform any sort of payment whenever you go. Just think about it, you can do transactions instantly, from every corner of the planet. The only thing you need is a solid internet connection.
Will Credit Cards Become Outdated?
Even though crypto wallets are way more advanced than traditional banking, we don’t believe that this change will occur in the foreseeable future. The reason is quite simple, the old ways are still the main ones. So, we will need to wait for a couple of decades before the new approach takes the prime spot from the traditional one. In any case, we will just have to wait and see.