In Singapore, we have the privilege of mingling with high quality cryptocurrency enthusiast and entrepreneurs. There’s one particular story that Anthony Lewis told me that really stuck in my head, and that’s the story of comparing Credit Cards Vs Bitcoin.
When people ask me how bitcoin and credit card processing differ, immediately the word “security” comes into my head. But how do you actually demonstrate that bitcoin payments are actually more secure?
Paying for goods and services online with your credit card
When you pay for items online with a credit card, there are a number of things you have to enter into the website:
- Your name on the credit card
- Expiry Date
- Security Code
And sometimes, you will you have to enter your residential address. You’re basically writing everything online – naked! Meaning, if someone were to hack into your computer, that’s it, they can see everything.
Paying for goods and services offline with your credit card
Paying with credit cards at retail stores such as restaurants is even worse! But I have to say, it’s only when I got involved with bitcoins that I realized how dangerous using credit cards is in the real world. Anyway..
When you pay for services in a shop, especially in a restaurant, you have to give your credit card to the waiter, and they will walk over to the cashier and process it through their payment system. But wait here! Do you know that they can do A LOT of things behind you with you knowing?
- Take a picture of the front and back of your card
- Note down the details of the card via their own phone
- Buy things online during the 5 minutes that he’s away (I’m exaggerating)
But the point is clear. Your credit card is at risk when it’s not with you! All the data is on the card!
Paying with bitcoin
6 month’s ago, when you ask someone “What is bitcoin?” at least 50% of the people you talk to would not have heard of it. Today, nearly everyone has heard of it and “sort of” know what it is. 6 months later, I’m sure 80% will know what it is.
But the problem is, not many people understand “How to pay with bitcoin”.
If a merchant accepts bitcoin, you will see something like this:
If you pay for items online, you will see something like this:
So how do you pay? Bitcoiners will have a mobile wallet, where there is an inbuilt QR code scanner. The Customer DOES NOT need to write anything on the computer. They just scan the QR code regardless if it’s on the mobile device or computer. That’s it! This is really safe as you don’t need to enter your details at all.
So credit cards or bitcoin?
I’m pretty sure you know the answer by now :).
Anthony Lewis is the Asia-Pacific Business Development of itBit.com, largest bitcoin exchange in Singapore and one of the largest in the world. He is also President of ACCESS (Association of Cryptocurrency Enterprises and Startups, Singapore)
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