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Will Bitcoin replace Visa or MasterCard?

Bitcoin has been getting some great publicity lately with stores such as Tigerdirect.com and overstock.com now accepting Bitcoin as a payment. Unfortunately there is also bad publicity such as the Silk Road and one of the CEO's of an exchange being arrested due to alleged Money Laundering.

With all that said though, Bitcoin is still very young and is still going through it's teething stage to be accepted globally as either a currency or another type of payment gateway such as the like of PayPal.

Question is, could it replace Visa and MasterCard? These companies charge surcharges of 3.5% and above for many online transactions. Compare this to Bitcoins, small (if you want your transaction to be confirmed quicker) or no charge whatsoever. Tie this is with close to instantaneous transaction rates, one could say this is the future of a way to pay for items online.

One might argue what about the volatility? Well payment gateways such as BitPay, ensure that the price the customer buy it for is the money you will receive minus there .1% transaction fee. This is done by trading the Bitcoin on the market as soon as it is received then the Client receiving their payments via BitPay.

Bitcoin as mentioned is still very young, and knowledge and understanding on the subject is still very small for most new comers as was every new sort of technology such as the phone, internet etc. I for one though, believe if it does not become it's own currency it, it will certainly give Visa and MasterCard a run for their money!

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    Feb 8 2014: I'm not interested in bitcoins, but if there's some chance , I'd like to collect some rather than spend them as a main currency. And as a fact, I have other souvenir RMB notes that I think are more rare than bitcoins. And when I buy things, obviously the credit cards will be safer for me to take than money does due to the risk of encountering thieves through public transportations.:)
  • Feb 7 2014: Trust needs to be earned over time. Bitcoin may be the 1st shot but more regulations and guarantees are needed before people will trust it. There are still people who do not believe in money or credit cards or debit cards. 8>))