Since BTC’s introduction to the world, it has been a lifesaver to many. Being the world’s first revolutionizing decentralized digital p2p Cryptocurrency, it becomes important & difficult to stay at the top for so long in the middle of a lot of criticism. As every coin has two sides, similarly there are positive & negative effects of Bitcoin too.
It also becomes difficult to create a positive impact in the world full of paper currencies and competing with old age assets like Gold and Silver.
Though, in this modern world amidst of all Cryptocurrencies, Bitcoin stands firm to be the king of all Cryptos. In fact, since then a lot of cryptocurrencies have been launched in the market but none is known to be as revolutionizing and impactful as Bitcoin. Bitcoin has been in limelight most of the time due to its mysterious creator, Satoshi Nakamoto.
Rookie investors, who want to enter the Cryptocurrency world to compete for the race of being future billionaires, but fear whether to invest in Bitcoin or not, must read this article to know about the benefits & drawbacks of Bitcoin so that a right decision can be made.
Pros of Bitcoin:
As the first and most popular Cryptocurrency Bitcoin provides greater liquidity than its rivals in the crypto market. Liquidity means how fast and on-demand an asset can be converted to money at a fair price. The easy to enter and exit trait of this asset provides it more liquidity which makes it one of the best Bitcoin advantages.
- Worldwide acceptance and payments from anywhere/ anytime:
Worldwide, Bitcoin is now being accepted as a mode of payment. Many merchants and tech companies have started accepting payments in Bitcoin. Like, Microsoft: The biggest tech giant started accepting Bitcoin first time in 2014. For transactions, you only need to have internet access.
- Totally anonymous:
The coolest Bitcoin user benefit is also that Bitcoin protects your identity by keeping it anonymous. Nobody has to disclose any personal information for any Bitcoin transaction. Even its addresses can be changed with each transaction.
A Bitcoin address looks something like this:
- Near to Nil transaction fees:
You do not have to pay high transaction fees when sending or receiving payments through Bitcoin even internationally, unlike other fiat currency transactions done online through banks or PayPal.
It was developed keeping freedom in mind. No group or organization like Banks or Government agencies can control or rule Bitcoin. Hence, Bitcoin as an entity is independent. It breathes outside any political system.
Nobody wants to face taxes. Thus, a major Bitcoin perk is also that it is Tax-free until it is in a wallet or traded on an exchange online. Hence, prevents paying tax until the user withdraws it in the form of fiat currency from a bank.
All these Bitcoin advantages provide more space for Bitcoin to grow. Hence, we assure you that Bitcoin’s advantages won’t let you feel the presence of its disadvantages. Its Disadvantages are like a drop of water in an ocean.
Cons of Bitcoin:
- Scams and Frauds in the name of Bitcoin:
Being the world’s most popular currency, Bitcoin has paid far more price than usual in the name of negative publicity through Frauds, scams and Fish attacks. These include Ponzi schemes on small scale to Big ICO scams.
- Black marketing:
Black market activities happen through Deep Dark Web markets like the Sheep market and Silk Road. Bitcoin Billionaire Charlie Shrem was booked for aiding criminal activities and drug trafficking through Silk Road and had to spend two years in prison.
- Price volatility/ Price spike and drop:
Bitcoin’s history has been the witness of its price skyrocketing and highly sinking thereafter.
- No refunds:
The lack of standardized policy for chargebacks or refunds makes it one of the Biggest Drawbacks. Once the payment is made, it can’t be reversed.
New Cryptocurrency like Ripple has refund function, but this feature is yet to be built into BTC.
- Legal issues:
The legality of Bitcoin varies from country to country. Countries like U.S.A, Japan, Brazil, Canada and many others encourage the trade and use of BTC while some countries don’t.
Bitcoin’s untraceability has been a big factor that governments of various countries fear legalizing it.
- Lost keys:
The alphanumeric password that helps to access the Bitcoin wallet is a KEY. When BTC was first introduced it got stored on a computer wallet in the hard disk. If you lose the hard disk or the key, you lose BTC too. Present-day online wallets are being used that provide far better service than offline wallets. Online wallets provide their own Keys.
As we saw Bitcoin’s Advantages outweigh the Disadvantages, depending on what you consider using it for. People now a day’s love taking risks and hence ignore the disadvantages of BTC and keep trading.
We also have provided you an interesting video in the sidebar of our homepage about How in the past Gold and Silver were also considered to be worthless but they made their own path to a bright future where they got a place more valuable than fiat currencies. Similarly, sooner or later BTC will surely prove to be valuable and all governments will have to adopt it.
Also in the comments section, mention your views if you consider Bitcoin a Boon or Bane to the society.
“Bitcoin is going to change the world from a money transactional standpoint not just for Africa, but for everywhere”. – Akon (Singer and Producer)