What are the advantages and disadvantages of using Bitcoin?

What are the advantages and disadvantages of using Bitcoin?

Freedom in Payment

With Bitcoin it is very possible to be able to send and get money anywhere in the world at any given time.
You don’t have to worry about crossing borders, rescheduling for bank holidays, or any other limitations one might think will occur when transferring money.
You are in control of your money with Bitcoin. There is no central authority figure in the Bitcoin network.

Control and Security

Allowing users to be in control of their transactions help keep Bitcoin safe for the network. Merchants cannot charge extra fees on anything without being noticed. They must talk with the consumer before adding any charges. Payments in Bitcoin can be made and finalized without one’s personal information being tied to the transactions.
Due to the fact that personal information is kept hidden from prying eyes, Bitcoin protects against identity theft.
Bitcoin can be backed up and encrypted to ensure the safety of your money.

Information is Transparent

With the blockchain, all finalized transactions are available for everyone to see, however personal information is hidden. Your public address is what is visible; however, your personal information is not tied to this. Anyone at anytime can verify transactions in the Bitcoin blockchain. Bitcoin protocol cannot be manipulated by any person, organization, or government. This is due to Bitcoin being cryptographically secure.

Very Low Fees

Currently there are either no fees, or very low fees within Bitcoin payments. With transactions, users might include fees in order to process the transactions faster. The higher the fee, the more priority it gets within the network and the quicker it gets processed. Digital Currency exchanges help merchant process transactions by converting bitcoins into fiat currency. These services generally have lower fees than credit cards and PayPal.

Fewer Risks for Merchants

Due to the fact that Bitcoin transactions cannot be reversed, do not carry with them personal information, and are secure, merchants are protected from potential losses that might occur from fraud. With Bitcoin, merchants are able to do business where crime rates and fraud rates may be high. This is because it is very hard to cheat or con anyone in Bitcoin due to the public ledger, otherwise known as the blockchain.


Lack of Awareness & Understanding

Fact is many people are still unaware of digital currencies and Bitcoin. People need to be educated about Bitcoin to be able to apply it to their lives. Networking is a must to spread the word on Bitcoin. Businesses are accepting bitcoins because of the advantages, but the list is relatively small compared to physical currencies. Companies like Tigerdirect and Overstock accepting Bitcoin as payment is great. However, if they do not have a knowledgeable staff that understands digital currencies, how will they help customers understand and use Bitcoin for transactions? The workers need to be educated on Bitcoin so that they can help the customers. This will definitely take some time and effort. Otherwise, what is the benefit of such large companies accepting Bitcoin if its staff doesn’t even know what digital currencies are?

Risk and Volatility

Bitcoin has volatility mainly due to the fact that there is a limited amount of coins and the demand for them increases by each passing day. However, it is expected that the volatility will decrease as more time goes on. As more businesses, medias, and trading centers begin to accept Bitcoin, its’ price will eventually settle down. Currently, Bitcoin’s price bounces everyday mainly due to current events that are related to digital currencies.

Still Developing

Bitcoin is still at its infancy stage with incomplete features that are in development. To make the digital currency more secure and accessible, new features, tools, and services are currently being developed. Bitcoin has some growth to do before it comes to its full and final potential. This is because Bitcoin is just starting out, and it needs to work out its problems just like how any currency in its beginning stage would need to.

Leave a Reply