The Ethereum co-founder Vitalik Buterin said that digital currencies are more superior than other forms of payments.
Buterin made the statement via a tweet he made on Wednesday, August 24, citing that despite being censor resistant, that digital currencies have broken barriers as a tool for national and international payments.
People continue to underrate how often cryptocurrency payments are superior not even because of censorship resistance but just because they’re so much more convenient.
Big boost to international business and charity, and sometimes even payments within countries.
— vitalik.eth (@VitalikButerin) August 24, 2022
A Twitter user, Loopifyy agrees that cryptocurrencies have made international remittances easier.
“You never realize how easy crypto payments are until paying someone internationally”
Lefteris Karapetsas, who is the founder of Rotkiapp said that cryptocurrencies have made payment of developers living outside his jurisdiction easier. He added that developer teams that he works with are routinely paid in stablecoins. These are cryptocurrencies pegged to the USD.
According to him, this is very convenient for all the parties involved. Karapetsas said that most of the donations their project have received is also in cryptocurrencies.
Avoiding High Fees
Another user said that what won him over to crypto payments is the low fees, he acknowledged that he recently made a $10 transaction that he would have paid $3 service charge if he had used Paypal.
In his contribution, @BoredElonMusk said,
“The reason I got into crypto in the first place in 2013 was because my own bank took 3 days and a $40 fee for transferring money between a Canadian and U.S. bank account (from the same exact bank).”
And the Downside of Crypto Use?
A user said that he lost some ether to scams, while another said that transactions could be stuck for hours when the user fails to pay the appropriate transaction fee. In the opinion of @hazae41, crypto could be all good,
“until your transaction gets stuck and you can’t make another for one day because Metamask made a mistake in the fee estimation.”
How Some Tax Authorities See Crypto
Stephen Cohn said that crypto being regarded as an asset is the biggest setback to its use.
“Imo the biggest issues with using crypto as a payment is the tax implications. The IRS treats crypto as an asset. So you have to pay capital gains tax (assuming you have a gain and not a loss, which is another issue) upon completing a transaction.”