They say it’s safer, swifter and cheaper.
Supermarket chain Pick n Pay recently announced that it would pilot bitcoin payments in-store at its head office ter Cape Town. The grocery retail store is the very first ter the country to attempt out the relatively fresh alternative payment concept.
Albeit 90 procent of payments ter South Africa are still cash-based, “bitcoin rente and adoption ter South Africa is taking off big time”, according to bitcoin company Luno.
Bitcoin is a currency, much like the zoom or the dollar — only it is digital.
It is considered the very first decentralised digital currency, with no company or entity controlling it.
This implies, among other things, one can send money instantaneously all overheen the world, without having to go through a middleman such spil a canap or a credit card company.
According to Bitcoinzar, bitcoin is the largest of its kleuter te terms of market value.
You can buy bitcoins online by opening a bitcoin account, called a wallet, and you will get the coins at current exchange rates. A wallet is like a canap account, without a handelsbank.
Physical coins can also be ordered from reputable producers. Each physical coin has an online address that you can access with a password, called a private key. Then you can transfer the coin to your wallet or spend it right away.
How you can spend the coins
- You can spend them on online purchases. The seller voorwaarde also have a bitcoin wallet.
- At bitcoin-friendly shops. You use your smartphone to scan the code on the bill.
- You can exchange it with other currencies.
Here is a list of online and offline stores te South Africa, where one can make purchases using bitcoin.
The bitcoin network has individuals called “miners” whose job is to verify transactions, te an attempt to make the process more secure. Their job is similar to that of bookkeepers. The transactions are recorded te a public ledger, visible to anyone te the network, much like a central ledger used by banks to keep a record of all transactions. This is to make sure that people do not cheat by double-spending using one bitcoin.
Miners also get rewarded for this job.
- According to Luno, using bitcoin is safer because the user behind the coin’s address remains unknown. It is also more private ter this way, unlike submitting your individual credentials to a third party when transacting online.
- It is cheaper compared to handelsbank and credit card transaction fees that are higher.
- It is swifter because you can transact anywhere and there are no delays because of, for example, clearance issues.
- Bitcoins are also technically possible to roll out quickly
- Bitcoin does not have the same consumer protection one would find with banks spil it operates outside of thesis regulations.
- Owing to the volatility of the market, the price of bitcoin can increase or decrease without prediction, cautions an international bitcoin company.
- There are a growing number of scammers — who promise to dual your bitcoins or give you unreliably high rente.
- Criminal activities such spil money-laundering could be encouraged. Criminals can be paid ter the virtual currency because it’s not regulated or monitored by financial authorities.