After getting to know about the cryptocurrency rave, you must be wondering about the possible advantages and disadvantages that are associated with Bitcoins. There are quite a few advantages and disadvantages that make bitcoins a hot topic of debate.
Here we take a look at some of these pros and cons and evaluate them to see how beneficial the idea of investing in bitcoins actually is.
Freedom in Payment
The biggest advantage of investing in bitcoins is the freedom that you experience while making payments. With bitcoins, it is possible for you to be able to receive and send money from anywhere in the world. This opens a plethora of opportunities for hungry investors as they don’t have to cross borders, and are always in control of their money.
Control and Security
Another benefit of Bitcoin is that they give users the much-needed leverage of being safe in their transactions. Merchants working in the system cannot exploit their customers by charging additional sums. The consumer must be informed before any additional charges are added. Identity theft is also minimized due to personal information being protected in the system. Moreover, you can back up bitcoin at any given time to protect your money and ensure its safety.
A benefit of the Blockchain system is that all transactions are available for every member to have a look at, but personal information is kept private. Anyone can verify transactions at anytime to find out their authenticity. Your public address is visible at all times; however, your personal information is hidden and is not tied to this.
Extremely Low Fees
Another benefit of bitcoins is the presence of extremely low, and often payments without any surcharges or fees. Users can include a fee in transactions to speed up the process. The more you pay, the faster will be the speed at which the transaction takes place. Digital currency exchanges for converting bitcoins into fiat money can also be availed at lower charges than say PayPal and credit cards.
Lack of Awareness
One of the biggest disadvantages of investing in bitcoins is the lack of awareness that people generally have about the cryptocurrency. The fact of the matter is that many people are unaware of bitcoin. Since they don’t know the ins and outs of the investment, they can make themselves easy targets for a scam or any other fraudulent activity of that sort. Users need to be made aware of the method used for the transactions. Also, only a few businesses have started accepting bitcoins, and fiat currency is still valued more than bitcoins.
The market for bitcoins has a certain amount of volatility, as there are a limited number of coins available, and the demand for them is ever increasing. The prices for bitcoin fluctuate on a regular basis and respond to events within the cryptocurrency market. This volatility is expected to decrease with the passage of time.
With both sides of the coin in front of you, you can make a detailed decision as to the profitability of investing in Bitcoins.