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Are Bitcoins and Digital Currencies Safe?

As smartphone technology improves, shoppers are just as likely to pull out their phones as their
wallets when it comes time to pay for something; in fact, mobile commerce currently represents
22% of all digital commerce, and over the next five years, mobile commerce in the U.S. will
grow to $142 billion. Digital currency, an internet-based form of currency that allows
instantaneous transactions and borderless transfer-of-ownership, can be incredibly easy and
seamless to use.

However, many shoppers wonder (rightfully so) if these digital methods of paying are safe and
secure. More than one-third of Americans believe that credit and debit cards are the most
secure method of payment, while only 1% believe that using a smartphone-based mobile
payment app is the safest method of payment. In spite of this, however, 40% of consumers
have used a mobile payment.

The different forms of digital currencies have different levels of security. ApplePay and
Samsung LoopPay are highly secure, since retailers do not receive your credit card information.
These mobile payment methods can enable fingerprints to pay at capable registers, and they’re
considered quick and easy. Google Wallet and PayPal are secure because retailers don’t get
your credit card information, but Google and PayPal do. Bitcoin, meanwhile, is very difficult to
secure because the user is on his own to ensure that their money is secure, and there’s no
central banking authority to prevent Bitcoins from being lost or hacked.

In mid-2015, a new mobile payment called CurrentC (backed by Merchant Content Exchange) is
expected to be available, which will combine mobile payments and loyalty benefits. Mobile
payments and their technology can also make family vacations easier; for example, Disney has
created a Disney Magicband bracelet that enables mobile payments using a short-range RFID
chip and a 2.4 Ghz wireless transmitter. Jawbone is also planning to launch a device called UP4
that will allow you to access your wallet and your American Express card while also tracking
your fitness.

As mobile payments grow in popularity, companies will continue to innovate and create new
ways for customers to use mobile payments and digital currencies while on the go. Security
risks are still issues for various digital currencies, but as technology advances, mobile payments
and digital currencies will improve their security measures so that soon, shoppers will be able to
leave their (physical) wallets at home.

About the Author:

As a Digital Content Writer and Blogger at Digital Third Coast, Kristen specializes in writing
targeted, keyword-rich content for clients, whether it’s text for an infographic or copy for their
website’s services page. Kristen earned her MA in Writing, Rhetoric, and Discourse from
DePaul University, with a concentration in Professional/Technical Writing. With a background in
writing but knowing that she didn’t want to pursue a career in journalism, Kristen turned to SEO
and content marketing, knowing that these fields would be the next frontier in professional
writing and marketing. Connect with Kristen on LinkedIn and Google+.
7 Cyber Warnings E-Magazine – July 2015 Edition
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