Bitcoin has taken the market by storm and the number of people looking to make transactions through this currency is increasing each day. If you are one of those fascinated by this mysterious yet amazing currency and want to discover its advantages and disadvantages, you have come to the perfect place. This article will provide you with all the information about advantages and disadvantages of bitcoins.
So, let’s get started with knowing what are the pros and cons that come with this currency.
Advantages of Bitcoin:
The list of basic benefits of Bitcoin includes:
- With bitcoins, there are no boundaries on transactions. The users can send the currency anywhere in the world at any given time without any hassle.
- Bitcoin transactions don’t need rescheduling in the event of bank holidays.
- The users are in complete control of their money as there is no central authority to regulate the Bitcoin flow.
- Since the users are in complete control of the currency, it allows them to control the transactions as well which helps in keeping the Bitcoin network safe.
- There is no way for merchants to charge extra fees without it coming into the notice of users. In case a merchant wants to charge extra fees, he must inform the consumer about those charges.
- Bitcoin payments can be finalized without a user having to give away his information. This gives Bitcoin users complete anonymity.
- The fact that Bitcoin users are not supposed to reveal their identity is extremely handy as it provides protection against identity theft.
- Bitcoins can be encrypted and backed up to ensure the safety of your money.
- All Bitcoin transactions are recorded in a public ledger called Blockchain which enables everyone to see those transactions. This makes the transaction process more predictable and transparent.
- Personal information of users is always hidden and no one can access it unless a user decides to publicize it.
- Bitcoin is cryptographically secure and can never be influenced by a government, bank or a third person.
- Bitcoin payments involve very low fees, that too within Bitcoin system.
- How much fee is charged on a transaction depends on the urgency level of a user. The faster he wants it to process, the more priority it gets. As a result, the fees become higher.
- In countries like China where moving cash to other countries is prohibited, Bitcoin is a great way to transfer money to different parts of the world.
These are some major advantages of Bitcoin. Now let’s move to the next part of the article, which discusses the disadvantages of Bitcoin.
What Are The Disadvantages Of Bitcoin?
The list of basic disadvantages of Bitcoin includes:
- Bitcoins are finite, which makes them extremely volatile.
- A very small portion of the business is willing to accept Bitcoin as a method of payment.
- It needs strong networking to spread the word on bitcoin.
- Bitcoin is relatively new and most of its features are incomplete.
- There is still a long way to go before Bitcoin gets to its full potential.
These are some advantages and disadvantages of Bitcoin. The cryptocurrency has many unique advantages that traditional currencies lack; however, it also has disadvantages. Mainly due to the fact that Bitcoin is relatively new and will take the time to reach to its full potential.