It is not new that cryptocurrencies are one of the leading payment trends of the year. They had phenomenal growth over the years and provided a digital and secure way to make payments.
It was a game-changer for businesses worldwide, especially when we think about Bitcoin. This week, for example, the Bitcoin price hit a record after a massive purchase from Tesla.
However, new coins in the cryptocurrency scene brought competition to Bitcoin, such as Bitcoin Cash. Many people believe Bitcoin and Bitcoin Cash are the same thing, but they are not. In this article, we are going to explore both topics and learn the difference between them.
How does Bitcoin work?
Bitcoin is the most recognised and most used digital currency that uses blockchain technology to assure safe financial transactions and to manage the creation of new units of cryptocurrencies. The blockchain technology allows information to be decentralised, transparent and immutable, so it will be distributed but not copied.
You can generate Bitcoin by a process called ‘mining’, which consists of using a computer to solve complex mathematical problems. The moment the problem is solved, a new Bitcoin is generated.
One of the greatest advantages of using Bitcoin as a payment method is the security of operations. Every approved transaction is safely stored in a public record to ensure the authenticity of record-keeping. Purchases made using Bitcoins are never associated with the identity of the buyer, which makes fraudulent transactions almost impossible.
What about Bitcoin Cash?
Released in 2017, Bitcoin Cash was designed with a faster transfer speed than Bitcoin, which allows it to manage more transactions per second. As a result, transaction processing fees tend to be lower because the waiting time is shorter. However, the safety of operation may be compromised relative to the Bitcoin network.
Bitcoin Cash is also a digital currency and works in a very similar way to Bitcoin, however, Bitcoin popularity remains as the biggest digital currency by market cap. Users may find it easier and more convenient to use Bitcoin than Bitcoin Cash as Bitcoin real-world usability is higher.
The best advantage of using digital currencies such as Bitcoin Cash and Bitcoin are the low fees and minimal possibility of chargebacks. In order to do so, you need to be able to process digital currency payments.
How to process Bitcoin payments?
The first step to start accepting Bitcoin as a payment method is to open a Bitcoin merchant account that will allow you to process payments. iPayTotal is a leader when it comes to Bitcoin payment processing because we provide high-quality services at fair rates for high-risk businesses.
We also provide pay-outs in Bitcoins. The moment your application is accepted, you can start receiving pay-outs in Bitcoin with a renowned Bitcoin wallet. You can offer your customer the option of using Bitcoins directly or, in case they do not have Bitcoins, to buy it with their Visa or MasterCard.
Usually, a Bitcoin merchant account takes 48-72 hours to be approved, but it may take longer depending on several factors, such as industry type, processing history or the acquiring bank.
Every merchant account provided by iPayTotal incorporates a payment gateway provided by the approving bank. Our trusted banking partners offer a secure payment gateway for every transaction with which you will connect the bank’s API to your website upon approval.
Contact us today at iPayTotal and find out more about our Bitcoin solutions. Our team of experts will help you through the entire application process and remain as your consultant for the life of your partnership with iPayTotal.
Email firstname.lastname@example.org for more information about incorporating Bitcoin services for your customers.