As a digital currency bitcoin is gaining importance in most parts of the world. In fact the world has been seeing a bitcoin revolution.
So what is it that makes Bitcoin so different?
What are its advantages and disadvantages?
You should have answers to these questions by the time you finish reading these pros and cons of Bitcoins:
Freedom of transaction
Bitcoin makes it possible to send and receive money from anywhere in the world without any limitations. Crossing borders is not an issue with bitcoin and there is no need to reschedule your transactions because of bank holidays. With no central authority to regulate the transactions you will be in full control of your money.
Safety and Security
You will be in full control of your transaction when using Bitcoin. No merchant can add any extra fees or charges without being noticed. You don’t have to submit any of your personal information to finalize your payments in Bitcoin. Hence identity theft will not be an issue when it comes to Bitcoin trading. Also bitcoin can be encrypted and backed up to ensure additional safety.
Transparency in transactions
Once finalized, all transactions within the block chain will be visible to everyone. Anyone can verify any of these transactions. Still no one can manipulate the bitcoin protocol, whether it is an individual, an organization, or the government. Although your public address will be shown to everyone, no part of your personal information will be attached to it.
Bitcoin transactions come with very low or no fees at all. At times including some fees can help you get your transactions processed faster. However, the fee will be much lower than what is charged by PayPal or your credit card company.
Fewer Risks for Merchants
Bitcoin transactions are encrypted for safety. They don’t contain any personal information and they can’t be reversed. All transactions are in a public ledger called block chain, which is visible to everyone. So merchants will not have to worry about any potential losses that they might have to bear because of fraud.
Lack of Awareness & Understanding
Although bitcoin is gaining popularity there are many people who still have no idea about bitcoin or any other digital currency. They don’t know how to use it or apply it in their lives. There are businesses that accept bitcoins because of their advantages. Yet the list is still very small. And most of the staff members of these businesses know hardly anything about bitcoins.
Right now the amount of bitcoins is very limited; but the demand for them is still increasing day by day. So volatility is quite expected. However, with time, as more and more businesses, trading centers, and media start accepting Bitcoin, the price will start settling down and the level of volatility will begin to decrease.
Despite its many advantages, Bitcoin still has a long way to get out of its infancy stage. More features and tools have to be developed to make this digital currency accessible and more secure.