March 16, 2017
Written by
James Davis
Written by James Davis
Senior Technical Writer at United Thinkers

Author of the Paylosophy blog, a veteran writer, and a stock analyst with extensive knowledge and experience in the financial services industry that allows me to cover the latest payment industry news, developments, and insights. Read more

Reviewed by
Kathrine Pensatori
Product Specialist at United Thinkers

Product specialist with more than 10 years of experience in the Payment Processing Industry. I help payment facilitators and PSPs solve their various payment processing issues. Read more

The Rise Of Cryptocurrencies, Including Bitcoin And More

When examining the modern financial world, it is important to mention cryptocurrencies. Most of us associate cryptocurrencies with illegitimate activities like money laundering, terrorist financing, and tax evasion. However, it’s hard to find good information about Bitcoin and how they will change credit card payment processing and other services that payment gateway providers offer.

At first, for those who want to buy Bitcoin with a credit card, it can be difficult to decide just how legitimate and just how important these products are.

Understanding Cryptocurrencies

The word “cryptocurrency” is a term covering all kinds of digital mediums of exchange. These pseudo currencies are kind of algorithms that make it impossible to expand. As with gold or silver, there’s only so much of a cryptocurrency available.

Even harder for some to understand is that these products exist only in the cloud and have no physical form at all. Bitcoin was the first  “crypto” and is still the only player in the industry that’s worthy of note.  Any world authorities aren’t able to track crypto transactions or crackdown on its in any way.

After the source code is publicized, no one can change the roof or maximum limit on the number of cryptocurrencies This code is foolproof, but hackers can gain access to users’ secret keys in some cases, potentially compromising the system. Transfers happen almost immediately, and all you need is your secret key to access your crypto.

Cryptocurrency investment has become a real-world alternative to investment in precious metals or government currencies in recent years. But since there is no anchor or agency behind cryptocurrencies, the only foundation of the system is people’s faith in it. Legislation involving these products is almost nonexistent.

Bringing Cryptocurrencies To The Real World

If you find cryptos confusing, you’re not alone. So how does this currency product interact with the established financial system? In many cases, the answer is not very well. Converting any crypto into the real world is complex. But more and more people will want and need to do this in the future.

People may also want to use cryptos like Bitcoin in shops. They can also pay with crypto on mainstream websites, that’s why credit card payment processing software and services must be ready for this. Payment gateway providers must at least consider the possibility of conducting transactions in Bitcoin or other cryptos.

At United Thinkers, we’re constantly monitoring the financial world, even the lesser-understood parts of it. We’re ready for today’s payment processing needs and those of the future.

Contact us now to learn more about how the UniPay payment platform can help your business meet today’s needs and move into future gracefully.

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