Advantages and Disadvantages of Bitcoin
If you have been following the currency market for any length of time, you have most likely heard about the newest innovation in the world of money: the creation of the most popular new method of transacting money using the internet. You might be wondering how this new method of transacting money is different from the other methods. While all methods have their advantages and disadvantages, it is the advantages of bitcoin that are worth discussing.
One of the first advantages of bitcoin is the fact that it is completely private. All transactions on the internet are subject to a great deal of public scrutiny. Transactions involving bitcoin are protected from all internet observers by several layers of encryption technology.
Another advantage of bitcoin is the fact that transactions can be completed through many different locations at the same time. Many countries such as China and Russia will allow citizens to use their own national currencies. However, the only way they can use those national currencies is if they create a virtual account with a centralized exchange service. In effect, users are able to transfer money between their personal accounts and their international accounts at the same time.
Since these virtual accounts are also virtual, users are not required to give up any personal information to do so. The problem with this type of account is that many of the payment processors that are used today require their users to provide personal information. This is a major issue with the internet since anyone can buy anything with the credit card account, so much so that some businesses use that information for their own purposes. Users of bitcoin are able to avoid this problem because they do not have to disclose any personal information at all.
Advantages of bitcoin also include the fact that it is extremely fast. Because all transactions are completed through the internet, they can be completed in just a few seconds. This means that all purchases can be completed almost instantly. As mentioned above, the potential downside of bitcoin is that it can be difficult to get a hold of.
Disadvantages of bitcoin are also many. In order to purchase items with the virtual money, the user must create a personal account with a company offering the service. Since so many people do not have access to a personal computer, these companies will charge an additional fee for the privilege of sending funds. For most people, this is the downfall of bitcoin.
Another disadvantage of bitcoin is the fact that there is no insurance offered. Because of the fact that many companies do not require a large amount of investment before being able to accept payment, insurance may be the only option. However, the company must charge a fee for insurance, which is one of the many downsides of bitcoin.
As you can see, there are many advantages of bitcoin, but there are also many disadvantages of the currency. It seems that all of the things that made it attractive to so many people will also make it a very difficult method of buying products online. Until more merchants become interested in accepting this method of buying, it will continue to suffer from the disadvantages of bitcoin.