What are the advantages and disadvantages of using Bitcoin?

Freedom of payment

With Bitcoin, it is very possible to send and receive money anywhere in the world at any time. You do not have to worry about crossing borders, postponing public holidays, or any other limitation that may occur when transferring money. You control your money with Bitcoin. There is no central authority in the Bitcoin network.

 

Control and security

By allowing users to control their transactions, you keep Bitcoin safe for the network. Merchants can not charge additional fees without being noticed. They must speak with the consumer before adding fees. Bitcoin payments can be made and finalized without personal information being associated with transactions. Due to the fact that personal information is kept safe from prying eyes, Bitcoin protects against identity theft. Bitcoin can be saved and encrypted to ensure the security of your money.

 

The information is transparent

With the blockchain, all finalized transactions are accessible to everyone, even if personal information is hidden. Your public address is what is visible. However, your personal information is not related to this. Anyone at any time can check the transactions in the Bitcoin blockchain. The Bitcoin protocol can not be manipulated by any person, organization or government. This is because Bitcoin is cryptographically secure.

 

Very low fees

Currently, there are no fees, or very low fees in Bitcoin payments. With transactions, users can include fees to process transactions faster. The higher the costs, the higher the priority in the network and the faster the treatment. Digital currency exchanges help merchants to process their transactions by converting bitcoins into currency. These services generally have lower fees than credit cards and PayPal.

 

Less risk for merchants

Since Bitcoin transactions can not be canceled, do not carry personal information and are secure, merchants are protected from potential losses that may result from fraud. With Bitcoin, merchants are able to do business where crime and fraud rates can be high. Indeed, it is very difficult to deceive or scam anyone in Bitcoin because of the public registry, also called blockchain.

 

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Lack of awareness and understanding

The fact is that many people still do not know about digital currencies and Bitcoins. People need to be educated on Bitcoin to be able to apply it to their lives. Networking is a must to spread the word about Bitcoin. Companies accept bitcoins because of their advantages, but the list is relatively small compared to physical currencies. Companies like Tigerdirect and Overstock accepting Bitcoin as a means of payment are excellent. However, if they do not have skilled staff who understand digital currencies, how will they help customers understand and use Bitcoin for transactions? Workers must be informed about Bitcoin to help customers. This will certainly take time and effort. If not, what is the benefit of big companies accepting Bitcoin if their staff do not even know what digital currencies are?

 

Risk and Volatility

Bitcoin has volatility mainly due to the fact that the number of coins is limited and the demand for them increases each passing day. However, volatility is expected to decrease as time goes on. As more and more businesses, media and shopping centers begin to accept Bitcoin, its price will eventually become established. Currently, the price of Bitcoin is rebounding every day, mainly because of the news related to digital currencies.

 

Still in development

Bitcoin is still in its infancy with incomplete features in development. To make digital money safer and more accessible, new features, tools and services are being developed. Bitcoin still has some way to go before reaching its full potential. Indeed, Bitcoin is just beginning and it must solve its problems as any currency in its infancy.

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