Introduction
Trading with bitcoin is a very new and advanced technology of money transfer which is accepted popularly. Bitcoins are widely used in the world but it is yet to take the position of conventional money. But the way in which the usage of the bitcoin is increasing, very soon people would love transactions using bitcoins.
Not only transactions, in fact, bitcoin also produces money if used correctly. Bitcoin mining and bitcoin trading include a huge circle of bitcoin experts. These experts understand the utility of bitcoin and how it works. There are many online bitcoin trading software and applications which help in earning extra money out of nothing.
But if the idea of bitcoin is new to you then you must first have a clear idea about what are bitcoins? What are the pros and cons of using bitcoins? How bitcoin is useful for transactions etc.
Advantages of Bitcoins
Bitcoins are yet to take the place of conventional money because people are unaware of the advantage of bitcoin.
Fraud Payment
Bitcoins are non-tangible, and the method of transaction happens in the internet network. There is no method of reservable payment which makes the fraud difficult but such frauds easily happen in credit cards and cash transactions. Bitcoin transactions and transfers can not be copied or counterfeited.
Direct Transfer
When other modes of payment or transactions are done, there is a role of the bank and other authoritative bodies that control the transaction. But in the case of a bitcoin transaction, the transfer of the money happens from one man to others without any intervention or interference of any other body in the process of the transaction.
No Transaction Fees
There is no involvement of the charging process in the transaction of the money. If you do any bank transfer or any kind of monetary exchange through any other medium, it charges some amount. But in a bitcoin transaction, there are no charges implied on the transaction. The transaction happens directly happens from one person to another. So there is no involvement of transaction fees in the money transfer.
Disadvantages of Bitcoins
There are many critics of bitcoins who are not yet ready to accept the fact that bitcoins are trustworthy for the transaction. The critics have raised a number of concerns about the use of the bitcoins.
Unethical Transaction
Critics feel that since there is no authenticated body involved in this transaction and there are no such limitations to the transaction amount, the evil brains will use this technique for unfair means or unethical or illegal transactions. This will give rise to criminal activities in the world and no one would be able to stop them.
Applications Insufficient
There are not enough trustworthy applications or software present in the market which can be used for this kind of transaction. There are many fake applications as well as some application which can not do this type of transactions. In the name of bitcoin trading, there are applications that do not help in transferring money.
Volatile Currency
Bitcoin is a volatile form of money, it can be compared to gold which will be extinct after a point of time. The gold which is used will have to be melted to make a new gold, there would not be any birth of new gold in the mines. The mining of bitcoin is similar, one bitcoin has to be used to produce another bitcoin. If the process of adding bitcoins to the blockchain circle stops it would not produce new bitcoins in the market.
Conclusion
Before stepping into the field of bitcoin trading or dealing with bitcoins, know about the utility of bitcoins along with the pros and cons of it. Knowing the cons will not stop you from investing in bitcoin, in fact, it will help you earn properly with precautions and preventions.
Video – Cryptocurrencies
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