The use of blockchain for money transfers might look like a novelty but it is a reality. Innovations that spring up daily across the globe put several businesses on tenterhooks, and it is the perfect storm for the “innovate or die” mantra!
As at Q2 2017, it was reported that transactions processed in Q1 by Paypal was worth 99 billion USD. Blockchain was reported by Forbes to have a market capitalization in the region of $42 billion as at half-year 2017.
Years back, it was perhaps completely unimaginable that an idea like Paypal will have a place in the banking space. Now, while Paypal has a close integration with the banking system, Bitcoin is not so allied but it is robustly convertible.
You can have Bitcoin sent to you once you have created an account or you decided to work with an exchanger. Better still, you can complete a service for someone or transfer goods and request to get paid in Bitcoin. What all of these points to, is an encroachment of cryptocurrency on the turf of traditional bankers.
Money Transfer Pace
Gone are the days that you needed to show up in a banking hall to make a transaction. Here and now, with a token and a web-enabled device, you can complete transactions in a jiffy. While banking transfers are not always instantaneous, cryptofinance is offering a better deal.
When you have to make overseas money transfers, you might end up paying between 20 USD or more, depending on the transaction. Using the blockchain, some transfers are completed in a matter of hours while others might take longer. When you make transfers over the blockchain, you end up paying less than a dollar or thereabout. The efficiency is also one that puts cryptofinance in a good stead to displace traditional banking transfers.
Savings and Price Leaps
Imagine that you got paid some Bitcoin for your work done or as a form of another reward. Your payment is a form of savings if you do not put it to use immediately. The good side to this is that you are not charged any savings account fees with blockchain, and you are well-placed to reap the edge of price volatility.
As seen with Ethereum, which is the second most attractive blockchain platform, there are rewards that exist in the system. Ether pricing has leaped 30-fold since January to $300 as at 2017 Q2, from its earlier $10 price.
The Same Safeguards
There are safeguards you place over your normal banking accounts that also come up for the blockchain.
There is a two -step verification that you can embed in your account to ward off cybercriminals. This is a healthy mechanism that will require a password, phone and/or email alert.