Recently, credit card theft has been pretty rampant, with the whole Target credit card theft making the news in a huge way—which isn’t surprising, considering the number of victims involved and the size of a brand name Target actually is. Now, many are suggesting that the use of bitcoin is the safer alternative when it comes to electronic payment systems, as the usual methods behind credit card theft don’t apply to bitcoin technology. To be more elaborate about this, here are a few distinct reasons why bitcoin can potentially be the solution to credit card theft.
Image: flickr.com/photos/105644709@N08
Bitcoin does not require third party verification.
The trouble with credit card transactions is that a third party has to verify a person’s information for the transaction to go through. This is how a person’s credit card information is stolen. In the process of verification, the information is intercepted by thieves and then used for fraudulent activities. The use of bitcoin negates this danger, as the use of the currency doesn’t require one to go through such a verification process. Using bitcoin is basically like using cash, but without the possibility of counterfeits considering bitcoin’s cryptologic nature.
Bitcoin minimises merchant mistakes.
One of the rather iffy things that we’ve all come to accept with credit card purchases is the fact that we put a level of trust on merchants to process our transactions correctly and honestly, and to take whatever information we provide with a level of care. That amount of trust, when looked at from a specific point of view, is questionable. Why would we trust a stranger with such information? True, there are ramifications for getting caught doing certain acts involving a person’s credit card information, but if such a liability is enough to dissuade thieves, then credit card theft wouldn’t occur with the alarming frequency that it does. Using bitcoin then prevents this because of the cash-like properties of the currency. Merchants themselves don’t have access to your bitcoin wallet, and anything untoward that happens to you and your bitcoins would definitely not be coming from the merchant.
Bitcoin is accepted in limited stores.
One can take this as both a sign of safety as well as a potential danger, but considering that bitcoin use is not as widespread as credit cards, one can assume that the only outlets that accept bitcoin are secure and the chances of theft are minimal compared to credit cards. One can say that since bitcoins are less used, it isn’t as big a target for thieves—at least not yet, as there have been a few reports of bitcoin theft.
The best thing about bitcoin right now is potential, meaning it has a lot of it. With credit cards being used for a long time now, thieves have developed several ways, both crude and sophisticated, to steal money from you. With bitcoin still in a phase of development, more and more safeguards from thieves are going to be developed. Right now, it seems to a great alternative in order to avoid credit card theft.
BitCoin: the Solution to Credit Card Data Theft
6:30 PM
Prow
