One of the greatest advantages of cryptocurrency is that it exists primarily within the borderless expanses of the internet. Because it’s not tied to any central bank nor subject to the regulation of a particular nation’s government (or governments in some cases, like the EU), bitcoin doesn’t need to go through the dozen or so checks and balances in order to be transferred across borders and around the world.
Of course, there are still barriers: at each end of any transfer a given sum of cryptocurrency may be subject to various taxational and legislative processes in order to comply with a respective country’s policies (the complexity of these processes is dependent on how cryptocurrency is classified and legislated within a given country). But this would be true of a regular fiat transfer, too.
The core advantage of a cryptocurrency transfer comes from the fact that the legal burden of the trade is placed entirely on the individual at either end, rather than on the transfer and the relevant middlemen. This is because there are no specific middlemen—instead, there is a decentralised network of nodes working to transfer capital in a revolutionary new way.
But let’s get more specific: what makes crypto transfers so good? Well, here are just five examples of why transferring money with cryptocurrency is better than with fiat.
You heard that right: $99 million USD, transferred in Litecoin. It happened in April of 2018, and get this: the full sum was transferred in 2.5mins and it cost the sender $0.40. Those numbers are pretty insane just on their own. But the numbers become even more insane when you compare these figures to how much a regular transfer would cost. At the time of this article’s publication, The World Bank was reporting the average remittance fee for global transfers to be 6.94%, which means that the fee on a $1000 transfer would be $69.40. The fee on a $99 million transfer? A cool $6.87 million. That’s more than seventeen million times as expensive as the Litecoin transfer in question. Not to mention that the more expensive transfer would have taken much, much longer than a couple minutes.
Say what you will about Ripple—and people will—but it’s got some pretty phenomenal infrastructure. XRP is a unique player in the cryptocurrency market in terms of being one of the few digital currencies that are trying to augment rather than radically disrupt the current financial system. All of this makes Ripple somewhat controversial, but it’s undeniable that Ripple is great for transfers.
Right now, it’s the leading crypto in transfer speeds, processing 1,500 transfers per second versus PayPal’s 193, and the tech on Ripple’s end is only improving. Regardless of how you feel about the cryptocurrency and its associated company, this is a good thing. We know, for instance, that there’s some confusion about the connection between Ripple and XRP, but that’s a topic for an entirely different article. Is Ripple a good store of value? Is it a currency or a security? Questions aside, what’s important is this: XRP is currently the most efficient cryptocurrency for transferring money—especially when compared with how long it can take to transfer money through your standard bank transfer, even domestically. After all, all too often the only thing you want to do is split a bill.
Here’s a crazy fact: with a bank, your money is not as secure as you think it is. There have been many examples of customer data being stolen from banks, and the banks’ centralised storage of sensitive data—and the sheer amount of fraud that can be committed with that data—makes them obvious targets for increasingly-skilled hackers. And the number of websites, services, and payment gateways which capture your data is even more worrying, given that so often the digits from a credit card can be entered just about anywhere else on the internet in order for an unauthorised purchase to be sent through.
With crypto, given the complexity of one’s public and private keys combined with the decentralised nature of the currency’s database, theft of your capital via transfer data is far more unlikely than with fiat. Now, granted, if you’re storing money on an exchange, you are putting yourself in a precarious situation, which is why you need to store your cryptocurrency yourself, physically, if you want to be certain of its safety. The Winklevoss twins, for instance, keep the private keys to their crypto fortune written on pieces of paper, divided up and distributed across multiple bank vaults. But then, what would you do to protect over a billion dollars (at market peak) of magical internet money?
When you undertake a transfer through traditional services, there’s at least one other party who is incentivised to charge you fees that generate them a profit (remembering the 6.94% figure from earlier in this article). However, a given transfer executed through most blockchain ecosystems incentivises a large portion of that entire ecosystem to play a role in the transfer, and as many miners/nodes/etc. will work on a transfer as are incentivised to do so by the trust-less algorithm underlying the given cryptocurrency.
At this stage in the game at least, the price of a transfer is based largely on organic competition, rather than on a cabal of centralised institutions working out the best way of mutually maximising their profit margins. Pessimistically, this could well change down the line with the possibility of mining monopolies forming and attempting manipulate transaction costs, but so far this doesn’t seem likely.
Anonymity doesn’t have to be about getting away from the tax office—nor should it be—it can actually be a very good thing for ethical capital transfers. For instance, imagine if you needed to get someone out from an oppressive or poor nation, but bank transfers to that country have been blocked, or are subject to extra checks by corrupt institutions.
Cryptocurrency as direct foreign aid could be a big deal in disrupting future tyrannies and introducing freer economies to people globally. It is well-known that foreign aid payments to oppressive regimes often have a cut taken by those in power before being used to benefit the people of the nation in question. But imagine if instead of donating to a charity, sacrificing a portion of your donation to organisational operational costs, you were able to give directly and instantly to people in need—anonymous on your end and theirs, allowing for them to be empowered even in the face of a government doing everything it can to keep its boot on the necks of its people.
The instantaneous nature of crypto transfers is relevant even in the freest of countries, and it has the potential to give people more freedom to directly affect change in natural disaster relief situations among others. These really are exciting times, and blockchain is going to a big part of realising all the futuristic technologies that are going to harness that excitement.
Cryptocurrency is great for money transfers. Really great. There are so many advantages, from the decentralised nature keeping the market-driven pricing pure, to the inexpensive nature of moving large amounts of cash anywhere you want in the world.
We are now seeing modernised fiat-based transfer companies and initiatives like OFX pop up in the marketplace, and it’s going to be interesting to see where the future takes us. Will the crypto-future we have all been hoping for come through, or will banks and fiat regulators retain their stranglehold on the movement of capital within and across borders? If only we knew the answer—but if you want to place bets on the outcome, we suggest doing so in crypto.
Most people involved in the cryptocurrency space who aren’t motivated purely by monetary gain will likely find themselves at some point saying something like this: “One thing I really like about cryptocurrency is that it’s decentralised, and that the currency isn’t owned or controlled by a bank or state.”
With all that in mind, this article will teach you to understand the key differences, successes, and failings of both centralised and decentralised crypto exchanges.
What is a Bitcoin Gift Card?
A Bitcoin Gift Card is the perfect way for the newcomer to get their first Bitcoin. It comes with a paper wallet and simple instructions to set up a software wallet so that you can transact with Bitcoin over the internet. Bitcoin Gift Cards are available in AU$25, $50, $100 and $500 denominations.
Who should buy a Bitcoin Gift Card?
Anyone new to Bitcoin will find no easier way to get their first Bitcoin.
They can be gifted by an existing cryptocurrency enthusiast, or bought by anyone wanting to get involved for the first time themselves.
How can I pay for my Bitcoin Gift Card?
You can pay with either cryptocurrency through our coinpayments.net payment gateway, or you can use Australian Dollars through our POLI Pay facility.
Can I use a Bitcoin Gift Card to top up an existing software wallet?
Yes. When you receive your additional Bitcoin Gift Card, you can simply import the "Secret" wallet identifier from your Bitcoin Gift Card into your existing software wallet. This will move your Bitcoin from your Bitcoin Gift Card into your existing software wallet.
What does my Bitcoin Gift Card include?
Your Bitcoin Deposit, wallet and key generation and network transfer.
How long does it take to receive my Bitcoin Gift Card?
Going through to checkout takes about 2 minutes. You won't find an easier process anywhere. Once you've placed your order, it can take between 10 and 60 minutes to receive your Bitcoin Gift Card depending on the speed of the Bitcoin network at time of purchase.
We have partnered with GiftPay, an aggregator of online deliverable eGift Cards in Australia.
Through our agreement with GiftPay, you are able to purchase a Flexi eGift Card from us, redeemable at a broad range of retailers in Australia.
Watch the Video to see how it works
What is a Flexi eGift Card?
A Flexi eGift Card is an electronic gift card that lets you choose where you'd like to shop! In the past if you were given a gift card for a particular shop but didn't want to buy anything from that shop, you were stuck. But now with a Flexi eGift Card, you get to choose at which shop you spend your gift.
What's more, you may be able to split your Flexi eGift Card and spend it at different shops! For example, if you have a $30 Flexi eGift Card, you could choose to split it up into a $20 Myer eGift Card and a $10 iTunes eGift Card.
Where can I spend it?
You can spend your eGift Card at a broad range of Australian retailers. For a full list of our retailers, click here. (page showing full list of retailer logos)
How do I redeem it?
Your Flexi eGift Card will be emailed to you. Click the link in the email to open your Flexi eGift Card.
Then convert your Flexi eGift Card into any combination of gift cards or vouchers up to the total available balance. How you redeem your chosen gift card depends on the card or voucher chosen.
What Bills can I pay?
You can pay any bill that has the BPAY logo and Biller Code including credit cards.
Are there any payment limits?
Yes. You can pay a maximum of $1000 per transaction based on regulatory limits. You can however break up a bill into multiple $1000 tranches and enter the same biller and customer reference code.
How does the transaction work?
When you enter the amount you wish to pay, the BPAY biller code and your bill’s customer reference number, you will click through to our checkout.
At checkout, you will be asked to leave your details, which enables us to satisfy our legal requirements under the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2017. This sounds ominous, but takes about 2 minutes.
When you proceed to payment, you will be shown the digital currency amount payable and the wallet address to send your digital currency to.
Once you have sent your digital currency to our payment gateway wallet, you will receive an email notifying you that your payment has been received. We then convert your digital currency to AUD and pay your BPAY bill on your behalf.
Are there any fees?
Yes. At checkout you will notice our 3% fee added to your bill amount. This is to help us manage the currency risk of a volatile digital currency market when converting to AUD for us to pay your bill. We use a third party payment gateway to enable the digital currency transaction. Our considerations when choosing a gateway was security, pricing (spread) and speed. You’ll note when at checkout (before proceeding to payment) that the price you receive on your digital currency is very competitive. Other digital currency BPAY facilitators charge up to 6% per transaction on the currency alone, which in our view is akin to highway robbery.
[Free PDF Download] 5 Costly Mistakes When Transacting in Crypto Cheat Sheet
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