Many people are attracted by the independence and pseudo anonymity of Bitcoin. But its convenience, speed and cost are not always as attractive as people hope. The main advantage of using Bitcoin to pay is that you don't need a middleman
Because of its independence and pseudo anonymity, many people are attracted by Bitcoin. But its convenience, speed and cost may not be as pleasant as people think. In this article, we have outlined the most common advantages and disadvantages of Bitcoin.
advantage:
Freedom of payment
Any amount of funds can be paid and received immediately at any time and anywhere. No bank holidays, no borders, no restrictions imposed. Bitcoin allows users to fully control their own funds.
Choose the service charge yourself
At present, only a small fee is charged for bitcoin transactions. Of course, users can include higher handling fees in the transaction to encourage faster transaction confirmation.
Reduce the risk of merchants
Bitcoin transactions are secure, irrevocable, and do not contain customer sensitive or personal information. This avoids losses to merchants due to fraud or fraudulent chargebacks. Where credit cards are not available or fraud rates are unacceptably high, businesses can easily expand into new markets. The end result is lower fees, a larger market, and fewer costs.
Security and control
Bitcoin users can fully control their own transactions; It is impossible for merchants to impose fees that may occur in other payment methods that should not exist or are not easy to find. Payment with Bitcoin does not need to bind personal information in the transaction, which provides a great defense against identity theft. Bitcoin users can also protect their funds through backup and encryption.
Transparency and neutrality
All transaction information about Bitcoin is stored in the blockchain, and anyone can view and verify it in real time. No individual or organization can control or manipulate Bitcoin transactions. So we can trust Bitcoin to be completely neutral, transparent and predictable.
Disadvantages:
Acceptance
There are still many people who do not know Bitcoin. Many merchants accept Bitcoin every day because they hope to benefit from it. Although the number is still small, more merchants will support Bitcoin in the future.
Volatility
The total value and scale of Bitcoin in circulation are still very small. Therefore, relatively small transactions or business activities can significantly affect their prices. Theoretically, with the maturity of the Bitcoin market and technology, such fluctuations will decrease. There has never been such an emerging currency in the world, so it is really difficult (and exciting) to imagine how it will progress.
At the stage of development
Bitcoin software is still in beta, and many unfinished functions are in active research and development stage. New tools, features and services are being developed to make Bitcoin more secure and available to more people. At present, there are still some functions that are not available to every user. In general, Bitcoin is still in the process of maturity.
