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Exchanges, payment gateways, wallets and other thoughts on Bitcoin Cash

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Written by   206
9 months ago

Bitcoin Cash the digital currency par excellence

I am amazed at the rapid adoption of non-traditional electronic payments in my community. In this sense, I am looking forward to soon my favorite crypto, Bitcoin Cash, will be massively accepted in stores, so I will not have to exchange it for fiat money.

Although, exchanges and payment gateways are well-valued services today. Also, the product you buy becomes more expensive when you pay the commissions for the intermediation of these financial websites. That prevents the realization of the original vision of Bitcoin.

These services are the bridges through which the variants of digital money circulate; A hybrid system that links cryptocurrency, the latest expression of digital money, and its predecessor.

Source: Image by Sergei Tokmakov Terms.Law from Pixabay 

People generally have the belief that digital money is recent. Well, if you think in generations, they will be right. If you consider the last four generations, the money quickly moved from analog to digital. Eighty years is nothing compared to the known history of the use of money.

Let me explain the point to you through the account of my experience. When I graduated from college in the late 1980s, I received a checkbook and a debit card at my first job as a supervisor. I remember, when you paid, regardless of whether it was a check or a card, they were confirmed by phone.

On the other hand, my subordinates did not have bank accounts; consequently, they received their salaries in cash. One of my responsibilities was to pay them, one by one, and then I was accountable for the procedure to the upper echelon.

At some point, I think that with the entry of the internet, the confirmation of payments was automatic through new devices specially designed for it. In parallel, electronic tellers emerged to dispense limited amounts of cash. Eureka! Digital money was already a reality, in terms of data transmission and reception, coexisting with bills and coins.

Today, computers and smartphones are linked by wireless networks. They promote the leap towards new variants of digital money, especially cryptocurrencies. The coexistence with bank payment methods and with other services of emerging technology corporations is understandable.

Well, the important thing here, if you analyze it well, is who dominates the money. So far, it seems that they are the bankers who are supposedly supervised and regulated by politicians through laws and regulations and entities specially designed for this.

Here you and I are just temporary forks in the continuous flow of money. We usually talk about money as ours, but in reality, it is at the disposal of the bankers, who administer it and establish the limits of how you use it.

Although this situation does not inhibit you from the right on goods, it is also undeniable that the exchange system from which the money comes determines it. The owner of the money is the one who supports it and gives you the service so you can trade with this.

However, one must not forget that in the past, totalitarian regimes suppressed people's freedoms and rights based on the collective good, including property rights. There is no guarantee that this will not happen in the future. Perhaps they are already promoting it through alienation techniques.

Well, in the meantime, let's put these reasonable concerns aside and get busy dealing with these transition times as well as possible.

Let me tell you! My mistakes did over the past week when I used Uphold and Binance, respectively, to convert some of my last satoshis from BTC to BCH and then transfer it to local money.

I hate turning crypto into fiat money. Let's be realistic! There are still few stores that accept cryptocurrencies due to ignorance or their high volatility. In addition, in some regions, they are prohibited by governments.

The stores in my country have begun to operate with international electronic payment methods such as PayPal; Even the most avant-garde, small businesses, already accept payments in crypto through wallets of exchanges such as Binance. It is still not enough.

Source: Image by Bastian Riccardi from Pixabay 

So one must settle for paying the additional 5% of the value of the product or service if you use PayPal or any other similar platform. If you want to use cryptos, you have two options, look for the merchants that accept it or convert the cryptos through the exchanges by paying the commissions.

I still have some BTC left from my first Bitcoin purchase, made in May 2017, that is, about two months before BCH Independence Day. The purchase was made at Local Bitcoin by the son of a friend, who introduced me to the world of Bitcoin to enter a supposedly fantastic platform called Gladiacon, which turned out to be a scam.

The few remaining satoshis were kept in a custodial wallet called Xapo. So when there was the hard fork, someone also got some valuable BCH.

If I had been the owner of the wallet's private keys and had done the homework of researching and learning as much as possible about Bitcoin back then, perhaps my current position would be different.

Based on the first mistake, the greatest learning also comes hand in hand. Choose a non-custodial wallet, where you are the owner of the primary keys and take good care of them.

After a year, I transferred the meager BTC funds stored in Xapo to UpHold since my smartphone, which I still have and use daily, was not supported in the wallet update.

Since then, I use Uphold, and although I have no complaints about it, after learning about Bitcoin Cash, I prefer open-source non-custodial wallets.

When you own your private keys, you are free and responsible for the use of your funds. In UpHold or similar ones, no. Also, you will not be exempt from the conditions when you withdraw your funds.

I will give an example quickly. You will know that the fees for Tax in BTC are much higher than in BCH. So recently, within Uphold, I converted the equivalent of $ 20 from BTC to BCH and paid a commission of 1.2%. So far good! Now when I sent it to Binance to convert it to fiat money, for doing it quickly, I was in for a nasty surprise.

Source: Screenshot of my UpHold wallet transaction

Generally, the fees for BCH transactions from your non-custodial wallet are for one cent of the dollar. If you read the image above, in exchange, the 20 dollars when withdrawing became $ 16.8. A good reason to stick with Satoshi Nakamoto's purpose.

Sure, I later found out that if he had traded the BTC to XRP, the withdrawal would have been free. Although, to be honest, I did not think so, as I am a big fan of BCH.

Don't be overwhelmed by their enthusiasm when it comes to using exchanges. Every penny counts.

Once on Binance, although I don't like Tether either, I transformed my BCH into USDT through the Tron network, discounting another dollar.

Finally, I used a payment gateway in my country, which does not yet offer BCH among its options, to change the USDT to local fiat money at the day's fee. In the end, the equivalent of $ 15 arrived in my bank account, that is, 75% of the satoshis of BTC.

With this example, you will understand why we need to work for the massive adoption of Bitcoin Cash. A transaction that should only be a penny of a dollar without intermediation can go as high as $ 5 with intermediaries.

Close thoughts

The latest innovation in digital money is undoubtedly the Blockchain-based cryptocurrency. Bitcoin is the precursor, however, you have to do your research and decide whether or not to believe that Bitcoin Cash is the digital currency you need now.

Don't make my mistakes, such as I told you here. Sure, some say that mistakes and failures are your best teachers, but I suspect that we are in such interesting times that silly mistakes can be very costly these days and can cause you to miss out on valuable opportunities.

I am a Bitcoin Cash enthusiast, but not a maximalist. My advice, while you are in the transition between monetary models and wealth is fully shifted, use all the instruments that the market offers.

Work in your area of ​​influence for the mass adoption of cryptocurrencies, especially Bitcoin Cash. Try to free yourself from the ties of the system to prevent you from squeezing it further and achieving financial freedom.

An original article by @Jnavedan

Cover image by WorldSpectrum from Pixabay

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Comments

Hello friend, thank you for your article. it has been very helpful for me to learn about the world of cryptocurrency. In my country, Venezuela, as is known by everyone, we have a totalitarian regime. The banks control our money, limiting the amounts of cash and ATM withdrawals. Today there is little cash on the street. Stores here do not operate with international electronic means of payment. So you can imagine what our transactions are like when it comes to paying for a purchase or service. So the options you give when using cryptocurrency, in my case, would be to convert cryptocurrencies through exchanges paying commission. Your article inspires me to research and learn more about Bitcoin. I will follow you to learn more of your vision and experience on the subject. Thank you my friend.

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9 months ago

You're welcome, my friend. I understand you perfectly. Learn everything you can and try to promote the benefits of using cryptos.

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9 months ago

To be the tool we want it to be, we must be able as well to earn as to use BCH without exchanging it in any step or cashing it out to FIAT. Exchanging is not only expensive, it is also the greatest privacy problem with cryptocurrencies.

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9 months ago

Yes, the loss of privacy when using exchanges is a huge problem. Well, maybe using decentralized exchanges will partly solve this vulnerability, as long as you don't have the need to convert crypto into Fiat money.

In my first contact with crypto, I appreciated the fact that the transactions were public in a permanent record on the Blockchain. Now, after knowing the philosophy and the original purpose of Bitcoin, and by extension, applicable to the rest; I understand the need for anonymity. A matter of common sense.

In an ideal world, nobody would put locks on their houses, as in Moro's Utopia, but in the real world, who would publish what they have? Well, in the world of selfies; madness abounds.

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9 months ago