Dissecting The Consumer Benefits Of Cryptocurrencies

• Push based payments
• Makes micropayments possible
• Does away with the need for intermediates

One of the allegations often leveled against cryptocurrencies is that they serve no functions which existing financial institutions cover. The lack of financial returns and the potential of use by undesirable actors attracted by its anonymity is often advanced as an argument against cryptocurrency. Far from this myth, cryptocurrency and open blockchain technologies can significantly augment and improve the welfare of individual consumers. Available blockchain networks afford significant benefits to the U.S. consumer.

Push-based payments better than pull-based payments

Most cryptocurrency networks are push-based, and they give complete control to the Payer instead of the payee. Most transactions today are pull-based processes. It is initiated by the payee who asks the financial institution to “pull” funds from the account of the Payer. Pull-based payments are often detrimental to the Payer and give a complete advantage to the payee. An example that illustrates this is when someone takes a subscription for a service. Often it becomes a nightmare to end the subscription if the user is not satisfied with the services on offer. The onus to stop the subscription is usually on the subscriber.

– Advertisement –

Push-based services can mitigate this problem. There is always a security risk in a push-based system since the Payer provides all his account details to the payee, who has complete control over the information. A push-based system empowers consumers. The Payer does not have to worry that the payee will continue to pull money in the future.

Cryptocurrencies enable Micropayments

Most electronic payments require a trusted third party responsible for the services provided. The charge is deducted from the Payer’s account and not necessarily from the amount received by the payee. Though small, this amount can be significant if the transactions are many. Also, it is not economical to send smaller amounts. Cryptocurrencies negate such intermediaries’ needs and make small payments viable and cost-free. Removing intermediates also improves our digital infrastructure and empowers individuals.

Join The Coin Republic’s Telegram Channel for more information related to CRYPTOCURRENCY NEWS and predication.