5 reasons why Bitcoin kicks SWIFT’s ass
There has been a lot of buzz and hype around the fact that Bitcoin is a better payment protocol network than the already established method of cross border payments called, SWIFT.
Is it just another smart marketing stunt or is there any truth behind the hype? Let’s examine this for ourselves. First, let’s highlight how both of these payment networks work in order to get a better understanding.
Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a network and a communications platform which enables financial entities around the world to conduct financial transactions safely. Its main purpose is to securely transmit information and messages between the financial institutions across the globe.
Bitcoin, on the the other hand, is a peer-to-peer, open-source, software-based online payment system which uses various encryption techniques to securely transfer the funds between the sender and receiver. It also uses the same method to regulate and secure the network.
Now that we’ve discussed what Bitcoin and SWIFT are, let’s check how Bitcoin is much better than SWIFT and how, in many ways, it kicks SWIFT’s ass. Here are 5 of those reasons.
1) Quicker, Digital Baby! – In our ever fast digital world, users can shop, talk, stream videos in real-time.. why not send funds at the same time? Bitcoin enables instant, lightning speed transactions in comparison to the archaic SWIFT. An international wire from Japan to the US could take 1 to 7 business days depending on the amount. Now THATS slow.
2) Cheaper – Oh yeah! – Sending an email across the globe doesn’t cost you anything, right? Just like the email, Bitcoin is also open-source and using it costs you a mere $0.0005 per transaction. Why should it cost you a premium fee, $20 for example, to send your hard-earned cash across the globe? Bitcoin’s fee structure makes SWIFT look archaic in comparison.
3) Beyond Central Control – The decentralized nature of the Bitcoin network nullifies the possibility of a single entity taking control. That’s a big deal. SWIFT’s independence was threatened recently when USA asked very politely to suspend it’s services in Iran due to a political ban.
4) Transparent – Among all other applications within the Bitcoin network, Bitcoin also provides a public ledger for anyone to see. It’s real-time! Every transaction taking place from every corner of the Earth could be accessed by anyone with an internet connection. With SWIFT, on the other hand, even if you went to your local bank to inquire about a transaction, you’d raise a lot of suspicions.
5) Disruptive – SWIFT have had the monopoly over international payments sector since the last two decades, and USA can leverage the monopoly to apply sanctions. All of this has kept the ordinary citizen out in the dark. Bitcoin have all the signs of a disruptive technology which eventually empowers the ordinary citizen and lead a way for social innovation along with betterment.
Bitcoin is decentralized, and is based on a revolutionary technology. On the other hand, SWIFT is outdated and is not built for our fast changing world. What do you think?
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