Its true. I think this is the strongest argument against cryptocurrency-as-a-currency which proponents too easily gloss over.
Security issues e.g. disputed transactions is arguably something which would naturally happen less with crypto, given the higher security bar to accessing funds. 16 digit static card number versus real cryptography, pull versus push, etc. Additionally, most people (including me) shouldn't be managing their own wallets, and I feel too many proponents go all cut-and-dry "don't use coinbase, they're centralized finance"; the advantage is the ability to fall off coinbase and still have your money and transact with it, not to get rid of all centralized entities.
Chargebacks are something that simply can't be done in crypto. Well, they could be, with a more complex new currency that looks more like escrow rather than currency. Optimistic take: Its still a fantastic option today for goods which really don't qualify for chargebacks (think: digital downloads). Pessimistic take: Merchants hate chargebacks, and are the ones who ultimately decide which currencies they want to accept, so the lack of chargebacks won't actually impact uptake/usage.
In fact, this last point is why tons of porn providers already accept crypto. Adult content is an industry ripe with chargeback, which is why most processors won't touch them. The ones who do charge a ton in fees. They love crypto; no chance of a chargeback, and lower fees. Customers probably love it too; better anonymity.
> people will take longer to make purchasing decisions.
I'd be interested to know how many people seriously consider "I have recourse through my credit card if things go awry" as a major factor in purchasing decisions. I've DEFINITELY spent more to buy something from Amazon or direct from Apple, because I know their customer support is fantastic, and that's an avenue that won't go away with crypto. Card specific protections, I can't say I've ever considered, but that's just me.
There's still plenty of room in crypto for centralized entities, like Coinbase, to take on the role of a bank and absorb some of this responsibility. I'm imagining a "pay with crypto" versus "pay with coinbase" option, where the customer can opt-in to an additional X% transaction fee, paid to coinbase, for "purchase insurance" or something. Its not pure-crypto, but again: balance in all things.
Crypto is important not so it becomes the One Thing All Consumers buy Everything With in a Wholly Distributed and Decentralized World. Its just another option; an important one because it provides recourse for humans who have traditionally be spurred by the established western and wealthy-oriented banking system.
Security issues e.g. disputed transactions is arguably something which would naturally happen less with crypto, given the higher security bar to accessing funds. 16 digit static card number versus real cryptography, pull versus push, etc. Additionally, most people (including me) shouldn't be managing their own wallets, and I feel too many proponents go all cut-and-dry "don't use coinbase, they're centralized finance"; the advantage is the ability to fall off coinbase and still have your money and transact with it, not to get rid of all centralized entities.
Chargebacks are something that simply can't be done in crypto. Well, they could be, with a more complex new currency that looks more like escrow rather than currency. Optimistic take: Its still a fantastic option today for goods which really don't qualify for chargebacks (think: digital downloads). Pessimistic take: Merchants hate chargebacks, and are the ones who ultimately decide which currencies they want to accept, so the lack of chargebacks won't actually impact uptake/usage.
In fact, this last point is why tons of porn providers already accept crypto. Adult content is an industry ripe with chargeback, which is why most processors won't touch them. The ones who do charge a ton in fees. They love crypto; no chance of a chargeback, and lower fees. Customers probably love it too; better anonymity.
> people will take longer to make purchasing decisions.
I'd be interested to know how many people seriously consider "I have recourse through my credit card if things go awry" as a major factor in purchasing decisions. I've DEFINITELY spent more to buy something from Amazon or direct from Apple, because I know their customer support is fantastic, and that's an avenue that won't go away with crypto. Card specific protections, I can't say I've ever considered, but that's just me.
There's still plenty of room in crypto for centralized entities, like Coinbase, to take on the role of a bank and absorb some of this responsibility. I'm imagining a "pay with crypto" versus "pay with coinbase" option, where the customer can opt-in to an additional X% transaction fee, paid to coinbase, for "purchase insurance" or something. Its not pure-crypto, but again: balance in all things.
Crypto is important not so it becomes the One Thing All Consumers buy Everything With in a Wholly Distributed and Decentralized World. Its just another option; an important one because it provides recourse for humans who have traditionally be spurred by the established western and wealthy-oriented banking system.