What Are the Advantages and Disadvantages of Using Bitcoin?

Probably you are aware already of the concept of Bitcoin mining. The name fits, because the process is similar to mining for other commodities, like gold, for instance, which is mined from the earth, and eventually makes new currency available. Mining is used to introduce Bitcoins into the system.

Bitcoin stands out. It has many advantages and cannot be compared to any other digital currency. There are, however, some flaws to this form of currency and it is important to discover what these are. If you were going to become actively involved in playing casino games, it pays to become better informed first. So let’s start with Bitcoin.

Advantages of Bitcoin

Payment Ease:

• Using Bitcoin it is possible to send or receive money anywhere on the planet any time, night or day. That is a huge advantage.
• The usual limitations don’t exist when transferring money across the world. Having to take into account festivals and holidays, for instance, is not part of the equation.
• You are the only one in charge of your money. There is no controlling authority in the Bitcoin system.

Security/Control Issues:

• Bitcoin is a safe network as users are in control of their transactions.
• It is not possible for traders to charge the consumer extra fees and have it go unnoticed. Any extra fees need to be discussed with the consumer first.
• It is not necessary to supply personal information when making payments in Bitcoin. The transaction can be finalized without this information.
• It is not possible for people to see your personal information which makes Bitcoin safe from identity theft.
• Your money is safe with Bitcoin owing to Bitcoin’s back up procedure.

Transparency:

• All completed transactions are accessible to everyone but personal information is not available.
• Your public address is what is viewable. Your personal information is not.
• Because of the Bitcoin blockchain, anyone can verify transactions at any time.
• The system cannot be tampered with by anyone or any organization because Bitcoin is cryptographically secured.

Fees and Charges:

• At the present time there are no, or very limited, fees connected with Bitcoin payments.
• In order to get the transaction processed quicker, users might introduce fees. The higher the fee, the quicker it will move within the network. It will get prioritized.
• The use of digital currency exchanges that convert Bitcoins into fiat currency (legal tender, backed by the government that issued it) is helpful to traders. Bitcoin service charges and fees are usually much less than those of PayPal and credit cards.

Less Risks for Traders:

• It is not possible to reverse a Bitcoin transaction. These transactions are secure and do not contain personal information. It is, therefore, safer in instances where fraud may occur.
• It is possible to trade even where levels of fraud and crime may be high. This is due to the Bitcoin blockchain, or public ledger which makes cheating very difficult.

The above are the basic advantages. There are three particular disadvantages that need to be looked at. It is important to know both the pros and cons and what to expect from Bitcoin.

Disadvantages of Bitcoin

Awareness and Understanding:

There is still very little awareness and knowledge about digital currencies. Not that many people have heard of Bitcoin.

• In order for people to benefit from Bitcoin and apply it in their lives, they need to become more educated and learn more about it.
• More networking is vital to get Bitcoin out there and have people talking about it.
• More businesses are getting involved with bitcoins as there are many advantages for them but the list remains pretty small in comparison to physical currencies.
• It is good that we see companies such as Tigerdirect and Overstock accepting Bitcoin as payment. But it is just as important that their employees understand and are educated in the use of digital currencies. If not, they will not be able to help and direct customers on the use of Bitcoin for their transactions.
• Educating workers about Bitcoin needs to be made a priority. Only this way will they be able to help their customers. This may take time and hard work but workers do need to understand what digital currencies are. Without this knowledge, it makes no difference whether large companies accept Bitcoin as their staff don’t understand what it is.

Risks and Instability:

• There is a volatility to Bitcoin because of the limited amount of Bitcoin available and the daily increasing demand for them.
• However, we will see with time this volatility will diminish.
• Also, Bitcoin prices will become more stable as more businesses and traders begin to accept it as a means of payment.
• At the moment Bitcoin’s daily price fluctuations are caused by events occurring within digital currencies.

Development Stage:

• Bitcoin is still in its early stages of development with many of its features still in progress.
• In order to ensure that the use of digital currencies becomes safer and accessible, new services including new tools and features are being developed and tested.
• Bitcoin still has some way to go in its development until it reaches its maximum potential.
• Bitcoin is still in its early stage and like any other new currency, there may be teething problems and issues that need to be worked out.

In Conclusion

So, we have pointed out the pros and cons of Bitcoin. Bitcoin is not perfect but it does have certain plusses that are not available with physical currencies and are very useful to users. Even though there are some disadvantages these are mainly because Bitcoin is still in its early stages of becoming a new currency. Awareness is still growing, albeit rather slowly. People are gradually becoming more educated as to what digital currencies are all about and what they can offer them.

Everything in life is full of pros and cons. It is always a matter of weighing up the options. Deciding on the advantages and disadvantages before making a final decision. It will benefit you to learn all the facts about Bitcoin. Acquiring knowledge is always in your best interest.