Since bitcoin is all the rage right now and obviously many people have missed the train, so now just everyone wants to jump on it to make quick returns seeing the enormous rise it has seen this year.
But, before we do that, I am going to highlight some pros and cons of bitcoin, so that we can make an informed choice. So, let’s get on with it.
PROS of Bitcoin:
Freedom of Payment
- One can send and receive money anywhere in the world at any time.
- Since there is no central authority, you are in control of your money.
- Payments done through bitcoins are anonymous and can be done without sharing one’s personal information.
- No chance of Identity theft.
- With the blockchain, all finalized transactions are available for everyone to see.
- Anyone at anytime can verify the transactions in the blockchain.
- No one can manipulate the bitcoin protocol as it is cryptographically secure.
Very Low Fees
- Digital currency exchanges like coinbase, zebpay, etc. help people process transactions by converting bitcoins into fiat money. These services have lower fees than Credit cards and Paypal.
- With transactions, users might include fees to process the transactions. The higher the fees, the quicker it gets processed.
Fewer risks for merchants
- Due to the fact that, the transactions cannot be reversed, do not carry any personal information, and are secure, merchants are protected from losses that might occur due to fraud.
Also Read: Overview of Bitcoin & How to Earn It
CONS of Bitcoin:
Lack of Awareness and Understanding
- Many are still unaware of digital currencies and bitcoins.
- Businesses are accepting bitcoins like Microsoft, DISH Network, etc. because of its advantages but the list is small compared to physical currencies.
- It has volatility mainly due to the fact that there is a limited amount of coins and the demand for them is increasing day by day.
- Currently, bitcoin prices bounce every day mainly due to current events that are related to digital currencies.
Possibility of Increased Regulation
- Law Enforcement agencies could decide that bitcoins are a “big money laundering scheme”, and enact more stringent regulations that would diminish the currency’s value.
Lack of Security
- There is no perfect way to protect your bitcoins from human error (passwords mismatch or loss of password), technical glitches (hard drive failures, malware like WannaCry attack), or fraud.
- Bitcoins can be used anonymously as there is no need for any personal information leading to rising in illegal or antisocial acts like drugs, money laundering, etc.
So, guys, these are some pros and cons of bitcoin. What do you think about them? Do Pros outweigh Cons or vice versa?
I personally feel that the pros outweigh the cons and bitcoins are here to stay. So, one can make this cryptocurrency a part of their asset allocation but invest only that amount which you are ready to lose in case this doesn’t work.
Let us know what you think by commenting below!!!