Really? I didn't realize that. I thought "minutes" to transact.
But still... the whole world is on CCs and to replace all that with crypto logitically would be monumental... assuming cryptos were big enough at all.
⚠ Retailers call out Visa and Mastercard for fee hikes that could make inflation worse
- Thread starter kmiklas
- Start date
Really? I didn't realize that. I thought "minutes" to transact.
But still... the whole world is on CCs and to replace all that with crypto logitically would be monumental... assuming cryptos were big enough at all.
Baron
ET Founder
I explained this in a prior thread, but currently credit cards are processing zero transactions per second. When you swipe your credit card at the grocery store, the only thing that happens on the spot is an "approval", but that's not a transaction. An approval is simply a promise to the merchant by the credit card processor that they will eventually get their money. A completed transaction is the amount of time it takes for the money to be debited from the consumer and actually be credited to the merchant. Depending on the actual credit card being used, the merchant will not see the credit until 3 - 5 business days later. If the purchase happened on Friday evening or Saturday morning, you can add another 2 days since the weekends don't count as business days. Now the merchant must wait 5 - 7 days for a single transaction can be completed. And on top of that, the merchant receives 3% - 5% less than the original transaction amount due to fees taken out by the credit card processor.
With crypto payments, the settlement is instant. There is no 5-day waiting period. The whole transaction settles out within seconds or at the very worst maybe 30 - 45 minutes on the high end. And couple that with the fact that payments can be made around the clock 365 days per year with transaction costs in the pennies and it's not too hard to see how it's a superior form of payment for both the one sending the money and the one receiving it.
This might explain part of the weakness in Bitcoin .
If I am a business and accepting Crypto, I cant risk holding and so I will convert it back to dollars or hedge it immeditly.
I become a fundamental seller / hedger in the market that till now was all speculative.