Many people are probably hearing of bitcoins for the first time, or few of the ones that have heard of it, do not know what it is all about. Nevertheless, a brief introduction is that Bitcoin is a digital currency. Bitcoin currency is universal. Therefore, merchants do not have to bother about exchange rates when making purchases with bitcoin.
Many people are going into the bitcoin mining industry, and some still want to, but are confused whether it is worth it. In this article, we will be discussing the advantages and disadvantages of Bitcoin. This will not in any way make decisions for the confused ones but will help ease their decision-making. It will help outline the two sides of the coin, but they will be left to weigh them and decide.
Disadvantages of Bitcoin
1. Lack of understanding: Many people do not seem to understand how the Bitcoin works and the lack of awareness are not making it easy. Unlike the physical currencies, only a few companies accept bitcoins. In addition, the bitcoin market is somehow confusing, and most people sell and buy bitcoins blindly without knowing its present market worth.
2. Fluctuations in prices: The prices of Bitcoins fluctuate every minute due to its volatility. To use bitcoins, sellers have to be kept up to date on the current price always in order not to cut their profit. Buyers also need to be kept up to date in order not to buy at a high price than its worth.
3. The era of development: Bitcoins are still in its phase of development and requires some more features to increase its effectiveness. It is not as developed as the real currencies. Therefore, it is a close but not a total substitute for it.
4. Darkweb association: Most people mistakenly associate Bitcoins with criminals and fraud, especially after the US government raided the Silkroad markets back in 2013. This really hurts the reputation of this amazing coin and the technology behind it. Many users, investors, traders and businesses use Bitcoin for very legitimate reasons that have nothing to do with anything illegal.
Advantages of Bitcoins
1. Fewer charges: Banks have been known to extort their customers with various charges while claiming to protect customer’s money. With bitcoins, there are close to null charges during trades.
2. Currency is universal: You do not have to worry about exchange rates when making transactions with bitcoins. It is a universal currency.
3. Saves time: If you are the type of person that hates long time-wasting bank queues and ATM queues, then bitcoin is for you. Bitcoin transactions usually takes only few minutes from the point the user initiate the transfer, which is extremely speedy. You do not have to go to any bank for transactions because the internet is your bank.
4. Privacy: Users can send and receive payments from all over the world without having to give up sensitive information that are usually required by most financial institutions, such as Full Name, DOB, Social Security Number…etc
In conclusion, just like every other thing, bitcoins have its advantages and disadvantages. So only you, the user, will decide if Bitcoin is for you.