Mastercard aim to make Bitcoin transactions possible on credit cards

South Africa News

Bitcoin Mastercard

Bitcoin could soon be dragged into the mainstream market, as Mastercard took their first steps in dealing with the digital currency.

As CNBC report, they are considering how they can integrate the technology with their own systems.

The titans of the financial industry have patented a method that allows “crypto-payments” via the use of a credit card. It’s the first step of its kind taken by a fiduciary company and further legitimises Bitcoin as a means of legal tender.

Mastercard look to utilise blockchain technology

Their patent – which would aim to use “fractional reserves of blockchain currency” – was approved on Tuesday. However, there’s a reason others have been reluctant to take this step.

All investments are volatile – that’s the nature of the beast. But Bitcoin is notorious for its wild swings in value. In December 2017, one BC was worth $19 000. Just a few months later, that value had plummeted to $6 000.

There’s been a noticeable recovery in the second quarter of 2018, with the blockchain technology rallying above $7 000 and since holding steady.

Bitcoin has had to overcome various legal hurdles, in economic strongholds such as the US and South Korea, yet still remains the preferred cryptocurrency of tech-savvy investors.

How long does a Bitcoin transaction take?

Another stumbling block Mastercard – and perhaps eventually, its competitors – will have to overcome is how long a blockchain transaction actually takes. As it stands, it’s roughly 10 minutes for a digital transaction to be completed through this method.

They’ll some time to figure that one out, though. A patent is there to protect intellectual property: They may never complete their idea, but protect themselves from having their proposals ripped off elsewhere.

How does Bitcoin work?

Get ready for this: “Bitcoin miners” are mathematicians and software professionals who are able to take data from computers all across the world, which generates currency. They are reaching into computer software and pulling out the data required to give the tender its value.

Miners and their specialised computers compete against each other. When a miner verifies a transaction, they receive a small amount of Bitcoin. This is how new bitcoins are then introduced into the system.

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