Digging Deeper Into Bitcoin: Its Pros and Cons

Digital transactions are limitless that expose those borders of a traditional way of exchange including long waiting time, security threats, and high transaction fees. The rise of digital currency like Bitcoin changed the world’s perception about mainstream business transactions. However, digital currency too has its pros and cons.

Bitcoin was released in 2009 and is now rapidly being popular among businessmen and investors. There are several ways on how you can invest in Bitcoin which include Bitcoin mining, Bitcoin exchange, or investing to a company with Bitcoin investment.

Bitcoin is considered an affordable, safe, and faster option when making payments and money transfer according to Anthony Gallippi, CEO of BitPay. It also promotes increased volume and capacity of transactions.

The following are the advantages of Bitcoin:

• Secure transactions. This means that there is no possibility of reproducing or forging. Also it prevents identity theft since every transaction is comprehensively verified and it only requires digital identification wallet without mentioning the full detail of your credit or debit card.
• Processing immediate settlement. Bitcoin completes transaction faster and in real time compared to the traditional method that the payment process is done by a third party.
• Transparency of transaction. Transactions can be verified anytime and anywhere provided that you have internet connection but cannot be manipulated by other persons due to cryptographic security.
• Fees at a very low rate. At the moment, transactions made in Bitcoin are either with no fees or at lower fees since it can be converted to traditional currency.

However, everything has its pros and cons. The following are the disadvantages of Bitcoin:

• A business newbie and still developing. It has incomplete features that are necessary to be considered a developed digital service.
• Risky and volatile. Its volatility is due to the increasing demand for mining but has limited number of coins.
• Can be used for illegalities. It can be used anonymously to provide finances for illegal and immoral transactions.
• Can be selectively stopped by the government. Bitcoin can be interfered in other countries, and it can be difficult for you since your wallet can be frozen.

Bitcoin is on trend right now, but still it pays to know first its pros and cons before considering investment in it.