You can describe Bitcoin as a consensus network that creates a new payment system. It’s also a form of digital money. Ideally, Bitcoin was the first peer-to-peer, decentralized network powered by users without go-betweens or central authority. But from the user’s perspective, this cryptocurrency is more of internet cash. So, what advantages and disadvantages does this digital currency has?
Advantages
Payment Freedom
With this digital money, you enjoy the freedom to receive and send Bitcoin any time, anywhere. And this includes during the holidays. Essentially, bureaucracies and borders do not limit Bitcoin users. Bitcoin users have complete control of how and when they use their digital money.
Low or No fees
With Bitcoin, you don’t pay to receive money. Most Bitcoin wallets allow users to control the amount of to spend to send money. For faster transaction confirmation, some wallets charge higher fees. What’s more, the amount you transfer does not influence the costs. For instance, you can pay the exact price when sending 1 Bitcoin and when sending 100,000 Bitcoins.
Merchant processors assist Bitcoin users in processing transactions. These convert Bitcoin to traditional or fiat currency. They also deposit funds into the bank accounts of the merchants. Since these services are Bitcoin-based, their fees are lower.
Fewer Risks
A Bitcoin transaction is irreversible and secure. You don’t have to disclose personal or sensitive information to complete a Bitcoin transaction. And this protects you from losses that may arise from fraudulent chargebacks. What’s more, you don’t need PCI compliance to use Bitcoin. And you can expand your markets to places where customers don’t have credit cards. Bitcoin is also an ideal payment method for areas with unacceptably high fraud rates. Net results include fewer administrative expenses, larger markets, and lower fees.
Neutral and Transparent
You can find Bitcoin supply information on the blockchain network. Thus, you can use or verify this information in real-time. And no organization or individual can manipulate or control Bitcoin protocol. That’s because this digital currency is cryptographically secure. As such, users trust the Bitcoin core for being transparent, predictable, and neutral.
Control and Security
When using Bitcoin, you’re in control of your transactions. A merchant can’t force unnoticed or unwanted charges the way they can do with other methods. You can complete a Bitcoin transaction without disclosing personal information. And this protects you from identity theft. What’s more, you can use encryption and backup to secure your money.
Disadvantages
Volatility
Bitcoin has low usage and acceptance. As such, this cryptocurrency has relatively few trades, events, and business activities around it that may affect its price. Volatility will theoretically decrease with technology maturity and increasing Bitcoin markets.
Low Acceptance
As hinted, Bitcoin has a low acceptance rate. That’s because some people still don’t know much about Bitcoin. Some businesses accept this cryptocurrency because they are interested in its advantages. However, the number of companies taking this cryptocurrency remains low.
Ongoing Development
This cryptocurrency uses beta software that has several incomplete features. That means Bitcoin is still in active development. Therefore, more features and tools will emerge to make this digital currency accessible to more people and even more secure. Platforms like the Bitcoin System enable more users to access this cryptocurrency. And you can open an account with such a platform at the crypto engine website. Most businesses that use Bitcoin are new with no insurance. Thus, Bitcoin is still maturing.
As you can see, Bitcoin has more advantages than disadvantages. If you were unsure whether to start using this cryptocurrency, this fact should probably clear your doubts.
