If manufacturers of Ukraine used this technology, it would help them reduce their production costs, as they wouldn’t have to pay intermediaries anymore.
But, at the same time, it would help anyone who has ever made an international wire transfer know what’s happening with their money and where exactly it’s going. Click the link for more information.
7 Positives of Bitcoin that Benefits the Manufacturing Sector of Ukraine
1. Instant Payments
You may handle international payments instantly using bitcoin. There is no need to wait for 3-5 days, as it usually takes your money to go through all the bank’s offices and then reach its destination. Instead, you’ll be able to send money anywhere in the globe in less than ten minutes.
2. No Frauds Involved
Every time you make a payment with your bank card, there’s a chance that fraudsters can get their hand on your data and use it to steal money from your account. Unfortunately, it usually takes months for the victim to get their money back.
This problem does not exist with bitcoin because transactions are anonymous, and one cannot use someone else’s money without their permission.
3. Individual Control
To use your funds, you need to share your bank card data with several third parties – payment services, marketplaces, etc. As a result, you lose control over your money, and if one of the service providers gets hacked or has some other problems, you can say goodbye to all of your savings.
4. Data Protection
With bitcoin, your transaction history is kept in an encrypted form on servers of miners all over the world. So no bank employees can see how much or where you spend your money or save this information on their hard drives.
Banks are obliged to keep your transactions history for many years, but you can erase all the data anytime you want with bitcoin.
5. Cut-Price International Payments
International payments are expensive because banks have to convert currency twice – when restoring from your cash into the country’s currency where you are sending money and then again into the country’s currency where the recipient’s account is located.
With bitcoin, you can make international payments at a cut price because there are no banks in the middle to take fees from your money.
6. High Transaction Speed
As mentioned above, when making an international payment with your bank card, it may take you several days to successfully send funds across the world and get a confirmation that your transaction was accepted.
However, you can do it in just 10 minutes and be 100 percent sure that the payment went through with bitcoin.
7. High Transparency
When making a transfer with bank cards or any other traditional payment methods, you cannot track the status of your money, whether it reached the recipient’s account or not.
However, you can easily track your transaction and ensure it went through with bitcoin.
8. No Intermediaries Involved
When making a payment with traditional payment methods, banks take a lot of fees for their services. However, there is no need to pay any intermediaries with bitcoin because the whole process becomes decentralized and free of charge.
Some Negatives of bitcoin that affected the manufacturing industry of Ukraine
1. High Volatility of Bitcoin Price
Bitcoin price is highly volatile. You can be sure you sent $100, but there’s no certainty that its recipient will get this exact amount of money. As the price of bitcoin changes fast, it may either rise or fall by the time your money reaches its destination.
2. High Transaction Fees
Bitcoin transaction fees are usually much higher than those for traditional bank cards. For example, 3% is generally charged by credit companies. In contrast, bitcoin transaction fees may be as high as 20%. Risk of Loss
3. Lack of Regulation
Currently, there is no legal basis on which bitcoin companies should operate. This implies no guarantees if they suddenly decide to close their businesses or steal money from your account.
What benefits bitcoin brings to people, there is no doubt about it. But since it has some disadvantages, the manufacturing business of Ukraine should use some other payment methods for international transactions to avoid any loss or damages.