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The technology of bitcoin upgrades every year because there are millions of bitcoin users, and they face new problems every day. They also post to the bitcoin community about the issues they are facing. By looking at the issue, the bitcoin developers make many decisions to upgrade the technology to make it more usable. Bitcoin debit card is also a new term in bitcoin technology. Not even the bitcoin developer, many third parties are also taking advantage to solve the problem of bitcoin users by producing their products to charge money. The bitcoin debit card is also a third-party service to invest in a diversified portfolio.
Why can’t we use bitcoin everywhere?
There are the following causes of not using bitcoin everywhere given below:
- The bitcoin block size is petite (up to 1 MB), which means only five to seven bitcoin transactions per second. So the speed of bitcoin transactions is prolonged, and people have no patience in this digital era.
- You cannot make small payments in bitcoin because the bitcoin miners give less preference to the low transaction because they will get low transactional fees by validating. Sometimes you have to wait for days to solve your bitcoin transaction; you cannot use bitcoin everywhere.
- If you want fast transaction speed, you have to pay a higher cost for validating a small transaction that you cannot afford for daily payment activities. Hence you will use third-party payment applications to proceed with your payments at minimal cost with instant speed.
- Bitcoin is not accepted globally, like in rural areas, non-urban cities, etc., because people are not aware of the technology. In addition, many vendors hesitate to accept bitcoin payments because they fear losing money on the internet.
Why do we need debit cards?
We need debit cards because debit cards/credit cards are accepted by billions of vendors worldwide, whether they are offline stores or online stores. Debit cards are the most accessible mode of payment that you can use in our day-to-day transactions, and it is straightforward to carry without having cash in your pocket.
- You can connect your debit card with online payment applications to quickly pay money to vendors in a few clicks through UPI or QR code scanning. Other methods like payment in a bank account and phone number are also used.
- You can get cash through ATMs when required.
- You can swipe your card on an offline store to pay for the shopping without paying charges and with instant payment speed.
- You can use your debit card on an online website to pay online, and it is the most usable online payment method that every eCommerce store uses to accept payments.
What is a bitcoin debit card?
According to your choice, a Bitcoin debit card may be a virtual or physical card that you can pay in fiat by converting your bitcoins. Unfortunately, thousands of merchants do not accept bitcoin payments; instead, they prefer debit cards or other payment methods. The bitcoin debit card concept makes payment easy for bitcoin users, which means if you have a wallet, you can connect your debit card with the wallet. And every time you pay to the merchant, the merchant will receive payment in fiat currency because your debit card service provider will convert your bitcoin into fiat currency and charge some fees for the service.
Bitcoin debit card for withdrawing money?
We all heard about the bitcoin ATMs that charge massive fees for buying or selling bitcoin, but you can also withdraw cash from any banking ATM using the bitcoin debit card. Some debit cards provide the withdrawing feature, but some do not, and you have to talk to the bitcoin debit card service provider before proceeding.
Illustration to understand the bitcoin debit card
Suppose you are a bitcoin user and have bitcoins, but offline stores are not accepting bitcoin as payment in your area. But you are thinking of spending your bitcoin instead of fiat currency. You have two options – The first is to sell all the bitcoin and withdraw money into a bank account, and the second is through a bitcoin debit card. First, you contact a Visa or Mastercard service provider to connect your bitcoin wallet with a debit card. You will get your debit card virtually or physically, according to your choice. Then, when you go to the shop and swipe your debit card, the third-party service provider will convert your bitcoin wallet into fiat currency and transfer it to the vendor’s account by charging you some fees for converting.