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16th of October 2018

Technology



Advantages and Disadvantages of Bitcoin

Advantages and Disadvantages of Bitcoin

Bitcoins have been in the recent past popularizing in the recent past for its values. If you have got what exactly is mining bitcoins, then you might be wondering the advantages and disadvantages of bitcoins. Bitcoin has been named as the best cryptocurrency in the past due to a number of different reasons, today we will be looking after each of them.

It is also a known fact that there is nothing which can be termed as perfect hence there are a couple of flaws in the same. Let us have a look at both of them and at the end, it will help you to decide if bitcoin and bitcoin mining is for you.

Advantages of BitcoinsFreedom in Payment

Bitcoin doesn’t depend on the country, all over the world the value of bitcoin will be the same, hence you can send and receive money from anywhere in the world. Being a decentralized system you don’t have any issue with the holidays and off time. There is no central authority which is going to look after bitcoin, and hence you are the sole owner of the bitcoins that you own.

Control and Security

Users have full control over the bitcoins they own. Transactions are secure as the hash key of bitcoin changes with every transaction and hence there is no bitcoin with the same hash key. Another good thing is about the extra charges over the value that one cannot put with bitcoins as it is free to transfer any bitcoins. There is also security over the personal information because when you are transferring a bitcoin you need not share any information with the receiver.

You can even transfer a bitcoin without attaching your personal information this makes it the most secure form of transferring the money. Bitcoins are also protected against identity theft, and even theft by hacking, hence these are meant to be the most secure digital currency.

Information is Transparent

As is the case with blockchain the information is going to be visible to all. Personal information of all the bitcoin owners is hidden. You can verify any transaction at any time with help of a public ledger. The public address which is stored in the ledger is visible to all, while the personal information is stored under the password protected area of a particular bitcoin.

Very Low Fees

Bitcoin payments are free currently and there are no charges especially on the system which mines the bitcoins and stores the transactions in the ledger. Fees are usually charged by the wallets and websites who sell and buy these coins. Although these fees are also small and you have to pay just minimal numbers to get or sell some. Digital currency exchanges do have a fee and you will need to pay them the amount to convert the traditional currency into the digital one.

Fewer Risks for Merchants

Unlike traditional banks and PayPal, if you pay a merchant and then reclaim the money back, the merchant is usually in a loss. This is not a case with blockchain assisted bitcoins, and hence Merchants need not be in loss and can be secured about the money they have. Merchants especially operating in the area where the crime rate is high can use bitcoins as it is hard to cheat in the bitcoins due to the public ledger.

There are a number of disadvantages also associated with the bitcoins apart from the advantages, we are going to have a look at the main disadvantages that are associated with the bitcoins.

Disadvantages of BitcoinsLack of Awareness & Understanding

Bitcoin is a new technology is known to a limited number of people. Most of the people are unaware of the digital currencies and bitcoins, this makes it hard to make people understand the technology and pay via Bitcoins. Only the one who is well educated can understand the logic behind bitcoins, which is necessary if you are looking to transfer bitcoin to someone who doesn’t have knowledge about the same.

Although there are companies who have started accepting bitcoins as their payments, the key thing to note that these companies are available in limited hence you will need to search if you want to make payment via bitcoins. Even the workers working in these company have to understand the theory behind bitcoins and block chains so that they can work under the same keeping a check on bitcoins and more.

Risk and Volatility

Bitcoins are available in a limited number, unlike the currency which can be printed by the central bank when needed. Currently, not much people are trading with bitcoins and hence they are keeping the coins with them, hence once businesses start accepting it as a valid payment the risk and volatility of bitcoins will decrease. As we know daily there is a huge change in the value of bitcoin which makes it tough to trust the bitcoins.

Still Developing

Bitcoins are still at a very early stage making it difficult for us to understand fully. There are new features coming in bitcoins daily in order to make them work better. In the coming time, there are going to be improvements in terms of how we buy the bitcoins, and even the value will be stabilized.

Conclusion

With all the discussions coming to an end, it has been clear that you are having both the advantages and disadvantages of the bitcoins, more and more things must be clear about the new currency. Having full knowledge of the currency is still a question and most of them are learning about the same. Bitcoin is something which everyone needs to be aware of if they are looking to use it on daily basis.

Have your thoughts about the crypto coins are clear? What do you think about your decision to buy some new crypto coins in the future? Do let us know all in the comment section below. Also, do you own any cryptocurrency yet?

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