What’s all the hype about, really? Why use Bitcoin? Isn’t it easier to use Paypal or a credit card?
No! And here’s why…
Paypal and credit card – also known as ‘legacy payment systems’ – are BUYER FRIENDLY. While this might sound good, it’s actually a recipe for disaster online. Because a buyer can easily dispute a payment by requesting a Paypal reversal or a credit card ‘chargeback,’ the seller is always put in a difficult situation; if he ships the product, the buyer may simply cancel the charge and obtain the product or service for free. If he waits to ship the product or provide the service until Paypal or the credit card company releases the money to his bank account, he may be accused of FRAUD because of the delay. Either way, the seller faces a difficult dilemma.
Paypal randomly freezes accounts for little or no reason at all. It is almost impossible to run a business when your funds can be frozen at any time. Even when Paypal holds your money, they expect you to ship the product or provide the service you promised – in the hope that Paypal will eventually release your funds. Clearly, this is an unacceptable situation for a merchant.
Credit cards are similarly flawed. First, it is very difficult to even obtain a credit card ‘merchant account’ because of the high amount of credit card fraud. Because credit card numbers are easy to obtain online, fraudsters plague every merchant, placing orders for products or services with stolen card numbers. Eventually, the real cardholder finds out, and charges back the transaction, leaving someone with a loss – either the merchant who provided the goods or the credit card company who takes the loss. Because of the amount of credit card fraud and the possibility of buyer chargebacks, obtaining a merchant account is next to impossible and maintaining a business online accepting credit cards is extremely difficult for all but the largest companies.
Enter Bitcoin …
Unlike Paypal and credit card, Bitcoin is SELLER FRIENDLY. Bitcoin transactions can NEVER be reversed. You might expect this would lead to a large amount of SELLER fraud – and it does. Bitcoin merchants do occasionally scam buyers, but two factors help to mitigate fraud:
A. Escrow – Almost all Bitcoin transactions require an escrow. This means a trusted third party verifies the transaction. It works like this: A seller offers a product or service for sale. The buyer sends money to ‘escrow’ and the seller then delivers the product or service. The buyer notifies the escrow handler of a successful transaction, and the escrow then releases Bitcoin to the seller. This system protects both buyer and seller from potential fraud.
B. Trust – Trust is very important in the Bitcoin world and CasinoFair Blog. Scams and frauds are easily exposed on places like Bitcointalk.org, BitScams.org, and other scam reporting sites. Fraudsters simply go out of business too quickly to maintain a scammy business model.
Cryptojacking is when con artists utilize your PC or cell phone’s handling capacity to “mine” cryptographic money for their own advantage, and without your authorization. Con artists can put vindictive code onto your gadget basically by your meeting a site. At that point they can grab your gadget’s processor without you knowing.
