Financial Literacy: Bitcoin Payment Cards – How Do They Work And How To Use Them?
It’s important to know that BTC cards are part of the Visa / MasterCard system as the leading payment processors and are used worldwide. Do we need to invest in other crypts, in addition to bitcoin?
Here’s the answer
The liquidity of bitcoin or some other cryptocurrency means how quickly and easily we can convert our currency into another or pay for different goods and services. For now, cryptocurrency use is mainly used for online commerce, while the volume of online shopping is still negligible. Bitcoin is not the same as the money we use on a daily basis, with which we can enter the store and buy something and that is a big challenge for digital currencies.
In order to solve this problem, many bitcoin companies issue payment debit BTC cards that allow consumers to use them as any other payment card. Cards are debatable because we can spend as much money as we have on account. For now, there is no possibility of exceeding the amount due to the nature of the blockchain.
What is BTC and how to use it?
Bitcoin and debit cards are prepaid debit cards that allow us to add them to BTC, which is converted into one of the currencies such as USD, EUR, GBP, and others. In this way, we can pay for different goods and services using Bitcoin. It’s important to know that BTC cards are part of the Visa / MasterCard system as the leading payment processors and are used worldwide. Why is this important? Bitcoin as a means of payment accepts a limited number of merchants while the VISA / MasterCard cards are widely accepted. Therefore, having a VISA / MasterCard debit card associated with BTC is important.
Bitcoin and debit cards look like any other debit card and contain all the necessary elements such as cardholder name, card number, expiration date, codes, and more. They are made with the chip as well as all other EMV (Europay MasterCard Visa) cards and for their use, it is necessary to have the PIN (Personal Identification Number).
There is also a virtual version
In addition to classic plastic cards, there are also virtual BTC cards. Plastic BTC cards are used as well as other payroll cards in the Visa / MasterCard system. Virtual cards represent applications on our mobile phone and have limitations especially in terms of cash withdrawals at ATMs. Some of the more prominent BTC cards are Wirex, Cryptopay, Xapo, Uquid, and others.
Although there is a long way to full acceptance of payment cards that are related to crypts, the complete system will continue to develop and improve. The fate of individual crypts and even bitcoins as the most widespread digital currency will not affect the development of a block-based payment system. The system enables a simple exchange of one currency into another, as well as payment and transfer of money that takes place almost instantly with the lowest transaction costs.