Advantages and Disadvantages of Using a Bitcoin

bitcoin digital currency mining

Bitcoin was launched in the year 2009 as a public design. Unlike some traditional currencies like Dollar or Euro, it is not controlled by any central repositories. Bitcoin uses peer to peer technology which is similar to Skype, a video chat service. The Bitcoin transaction takes place through sharing the private key information and it must be secured to avoid losing the Bitcoins. Bitcoin is not a physical currency so it must be protected in a proper way.

digital currency bitcoin

Advantages of Bitcoins

Some significant advantages of Bitcoins were

  • There is no transaction limit and so the users can transfer limitless amount of money to anyone at anytime. Bitcoin transaction will act as a riskless and limitless transaction.
  • There won’t be any taxes or anything for exchanging the Bitcoins over the internet because the transaction happens between two users directly without any third party influence over it.
  • Lot of fraudulent charge backs were made by the customers through the credit card. But the bitcoin transaction is irreversible and the sellers will be saved from fraudulent charge back which is getting increased in recent days.
  • During Bitcoin Transaction, there is no need to exchange the Personal Information and it provides the strong protection against the identity theft. The Transaction happens with the private key information.
  • The Payment process happening in the bitcoin transaction is completely neutral and predictable.

bitcoins advantages

Disadvantages of Bitcoin Transaction

  • The value of Bitcoin is gradually increasing day by day in comparison to other traditional currencies. But it is not accepted universally and so it can’t be used everywhere.
  • The Value of Bitcoin is Volatile because the number of bitcoins in circulation is very less.

The advantages of bitcoins are more when compared to the disadvantages. The new Bitcoin which comes into the field through bitcoin mining and it must be secured properly by using some hardware wallets like Ledger Nano S or Keepkey wallet.

Protect Your Wallet

Bitcoin Wallet is like a Wallet full of Cash. So to reduce the risk of loss you must keep the bitcoins in the offline wallet. Make sure that your wallet is encrypted and secured. Nowadays the hardware wallet is provided with some two-factor verification like sending the one-time password to mobile or by asking some security questions.