Cryptocurrencies like bitcoins, litecoins, or peercoins are digital assets that people can exchange using cryptography to secure transactions. Today, several hundred digital currencies exist; today’s major cryptocurrencies are summarized in the following table.
100,000 merchants worldwide accept bitcoins.
The benefits of cryptocurrencies. Cryptocurrencies have three main benefits. Their ledger is not centralized but community-maintained. They are less prone to chargebacks than payment cards. And they are a push-type payment method.
|Community-maintained ledger||The timestamping schemes allows the community to maintain the ledger without a third party. The safety, integrity, and balance of the ledger is maintained by the community assuming that the ledger is maintained honestly.|
|Less prone to charge back||Cryptocurrencies are not as vulnerable to chargebacks as credit cards are because the sender cannot counterfeit or reverse cryptocurrencies arbitrarily.|
|Push payment||Cryptocurrencies are push payments, which means that the cryptocurrency holder sends the right amount to the merchant.|
Acceptance of cryptocurrencies. In terms of acceptance, some major online retailers, such as Over- stock, Expedia, Newegg, and Shopify stores, accept bitcoins as currency. However, new payment service providers are accepting cryptocurrencies too.