New To Bitcoins? Read Bitcoins Pros Vs Cons

What is bitcoin 222

Bitcoins offer a myriad of benefits to their users after completing various transactions around the market. However, there are still many people in the market who believe that investment in Bitcoins is risky and unsafe. Hence, just like any other type of investment the people interested should do proper research that would allow them to understand the different advantages and disadvantages of using this cryptocurrency.

Pros of Bitcoins: Why must you consider investing in them? 

Although the concept of Bitcoins was launched in the year 2009 it is still considered to be a relatively new form of currency. Learning about Bitcoins and their advantages can help a person decide whether they want to invest in them or not.

  • Accessibility and Liquidity: Cryptocurrencies do not have any restrictions or boundaries during transactions. They are easily accessible and versatile. The transactions using Bitcoins take only a few minutes to complete, thus you can enjoy a superfast experience when using bitcoins.

Hence, the purchase of goods and services by using Bitcoins can be completed by simply transferring them from one user to another. Such a versatile and quick nature of the transaction has even led to the ever-increasing list of places that accept cryptocurrencies as a form of transaction.

The process of spending money and exchanging between currencies is made easier with Bitcoins as they usually do not include any extra fees or charges. Users of Bitcoins can sell them easily whenever they want. If you’re looking for where to invest your money click here.

  • User Anonymity and Transparency: Bitcoin users are usually identified with help of numerical codes instead of their names. This helps in making sure that there is no public tracking of the users of Bitcoin. Such transactions cannot be traced easily.

The transactions a person completes with the help of Bitcoins are permanently viewable, and hence it provides them with a certain level of transparency. Even after such transparency, the blockchain makes sure the users are completely safe from any scam or fraud even if the address of the user’s wallet has become public.

To provide security and anonymity to the user, they are given the chance to generate a completely new wallet address that can keep them informed and safe. As compared to any other traditional system of currency where there are chances of personal information getting leaked, Bitcoin transactions are much safer as personal information is kept private.

  • Independence from any external authority: Being a decentralized currency, Bitcoin cannot be controlled or manipulated by any external agency. Hence, users of this cryptocurrency can be assured that their money will always be yours. Besides, there is no firm taxation method on Bitcoins, and many countries have clearly mentioned that they won’t have any tax on cryptocurrencies. This gives users independence from regulations and complete control over their money.

Cons of Using Bitcoins: Things You Must be Aware of Before Investing

  • No regulations by the government: The fact that Bitcoin is a decentralized currency can be not just viewed as one of its advantages but also as a major disadvantage. Bitcoins are not regulated or controlled by any governmental body or institution. Hence, it can be said that unlike any other type of currency Bitcoins are not regulated and protected by the law.

The transactions that are completed by using Bitcoins are usually irreversible and it might make the whole process susceptible to scams. Another major issue with the decentralization of Bitcoins is that there are no guarantees regarding the minimum valuation of this currency.

For example, if a large group of investors decide to stop using Bitcoins and sell them, it might severely affect the value of Bitcoin and probably lead to a fall in the value. This situation might prove to be extremely problematic for the users who own a large amount of cryptocurrency.

  • Limited use: Although the number of companies that accept Bitcoin as a form of transaction is increasing every day they are still not accepted widely. This often ends up putting a limitation on the use of Bitcoins which is not likely in the case of debit or credit cards.

If you want to invest in Bitcoinsyou can find various websites offering detailed information and guidance step-by-step about the process of investing in Bitcoins.

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