Advantages and Disadvantages of Bitcoin

Advantages and Disadvantages of Bitcoin

Let’s not waste any time.

Advantages of Bitcoin

  • Easy to use
  • Tax free
  • Minimal Transaction fee
  • No Intermediary required
  • No Remittance requirement
  • Trading Gains
  • Pseudo-anonymous
  • Inflation Proof Currency

Disadvantages of Bitcoin

  • Level of Acceptance
  • Unstable
  • BAN
  • No room for mistakes
  • Money Laundering

Let’s get into the details.

Advantages of Bitcoin

Easy to Use

All you need is a smartphone or computer and you are good to go.

You can send and receive money without the need of banks, credit cards.

Tax Free

Bitcoin is based on decentralized payment network. Its transaction can’t be intercepted by any third party. So it can’t be taxed !

Minimal Transaction fee

Unlike traditional payment systems (which charge you hefty fee for a transfer), bitcoins charge you $0 – $0.10 for any amount of money.

Also, keep in mind that time taken to confirm a bitcoin transaction is directly related to the fees you pay.

No Intermediary Required

All you need to send and receive money is an address.

Thus, bitcoin eliminates the need of third parties such as banks, PayPal, Visa.

No Remittance Requirement

With bitcoins, you can transfer money to any corner of the world in a couple of minutes rendering remittance industry completely obsolete.

Trading Gains

Bitcoin trading is highly lucrative because of its better liquidity and high volatility compared to fiat currencies.

Pseudo-anonymous

Bitcoin transactions are publicly accessible but it still offers a good extent of anonymity.

You can find the amount of money in a particular address but you can’t find out who its owner is.

Inflation Proof Currency

Every nation controls its local currency and they print it as much as they want. But when they print it too much and are unable to pay off the nation’s debt, their currency’s value decreases drastically and that causes inflation.

Bitcoins are limited, decentralized and can’t be regulated/controlled by anyone. Thus, it is inflation-proof.

Well, these were just the benefits. Now let’s discuss the disadvantages of bitcoin.

Disadvantages of Bitcoin

Level of Acceptance

Bitcoin is often deemed as The Future but most people/businesses still prefer fiat currency over it.

It is getting accepted by more and more organizations everyday but it still has a long way to go.

Unstable

Bitcoin’s price is highly volatile and unpredictable. It may be $10000 one day and $1000 the next.

Suppose you paid $100 of bitcoins for something and then a week later, bitcoin’s price value increased by 50%.

What will you do ?

You will probably think, “I should’ve waited”.

BAN

This is probably the biggest fear of every cryptocurrency holder.

What if a nation decides to ban cryptocurrencies and shut down companies engaged in it ?

Well, you can move to a country where it’s still legal.

No Room for Mistakes

Bitcoin transactions are irreversible.

So, if you mistakenly send bitcoins to a wrong address, your bitcoins are lost forever.

Money Laundering

Its biggest disadvantage is that it has made money laundering a lot easier.

Black market dealers can easily wash their dirty money with it.

This concludes the Advantages and Disadvantages of Bitcoin.

I hope you decide to use cryptocurrencies.

Share with people who need to know this !

Also See :

Beginner’s Guide To Buying Bitcoins Worldwide

Which Cryptocurrencies Should I Know About ?

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  • bitcoinBitcoin (BTC) $ 32,304.00
  • ethereumEthereum (ETH) $ 2,011.63
  • tetherTether (USDT) $ 1.00
  • dogecoinDogecoin (DOGE) $ 0.195026
  • litecoinLitecoin (LTC) $ 119.00
  • moneroMonero (XMR) $ 196.39