What are the Advantages and Disadvantages of Bitcoin?
Advantages and Disadvantages of Bitcoin
Bitcoin is a technology with unique features making it one of a kind, What makes Bitcoins so attractive and why more and more people and businesses use this payment system? Below are the advantages and disadvantages of Bitcoin.
- With Bitcoin could send and get money at any moment and any place.In many cases, using bitcoin is the easiest and quickest way to make a payment on the internet.
- Fees to be paid for dealing with bitcoins are significantly lower than credit cards and PayPal. In some cases, no fees are required at all.
- Bitcoin operates on a decentralized system ,Safer for merchants because Bitcoin transactions are irreversible ,merchants are protected from potential losses that might occur from fraud and you can’t retrieve bitcoins if the recipient does not agree to send them back.Since Bitcoin payments are not reversible, once a merchant has received payment, they can be sure that the payment will not be cancelled fraudulently.
- Bitcoin system is absolutely transparent, all finalized transactions are available for everyone to see , All protocols are protected by cryptographically so Bitcoin protocol cannot be manipulated by any person.Under all information it is meant where transactions were sent to and came from. However personal information and owner of that particular bitcoin address is hidden.
- Bitcoins are still only accepted by a very small group of online merchants.
- The value of Bitcoins go up and down in a seemingly unpredictable manner, This unpredictability may turn off potential users
- There are no charge backs : When goods or services are bought using Bitcoins, and the seller doesn’t send the promised goods or you are not satisfied with service , nothing can be done to reverse the transaction.
- Since Bitcoins do not have a physical form, it cannot be used in physical stores.However, online exchanges are readily available to convert bitcoins to fiat money in any case.
Bitcoin, as you can see , has many pros and cons ,It is still a relatively young and new currency. People are just beginning to become more aware of it and they need to understand what it is and how it works.