The Pros And Cons Of Using Bitcoin

Bitcoin is popular with a lot people around the world for several different reasons. For many, the decentralized nature of the digital currency offers freedom from banks and government restrictions on spending. For others it is simply a cheaper and more convenient way of transferring funds around the world. Using bitcoin has many advantages, but also a few drawbacks at the moment. Let’s take a look at some of the main pros and cons:

 Pros:

• Bitcoin is completely immune to inflation, since it is impossible to produce more of it.

• Due its deflationary nature, bitcoin is seen by many as a smart investment, since its value can only ever go up.

• Since all transactions are peer-to-peer and require no third party, transaction fees are negligible compared to other commonly used methods of currency transfer, such as PayPal.

• Bitcoin has been used by people living in economically unstable countries as a way to protect their personal savings in case of a total economic collapse.

• In countries where governments imposes strict regulations on how people can spend and invest their money, bitcoin is a means of financial freedom, and a way to gain access to opportunities that would otherwise be unavailable.

 

Cons:

• Although bitcoin can be treated as a currency – and many people already do so – it is not yet regarded as legal tender. This means that vendors are under no obligation to except bitcoin as payment. This could change in the future however, as bitcoin’s use becomes more widespread.

• Bitcoin has received a lot of negative media attention in the past year, which has tarnished its image. This is largely due to the dishonest actions of some prominent bitcoin advocates, as well as misinformation regarding the currency. However, efforts to better educate people about bitcoin and how it works are gradually helping to improve its image.

• Bitcoin is considered to be a volatile currency, due to its large and often unpredictable fluctuations in value. This volatility will most likely subside as the currency enters general usage, and its value is weighed against physical goods and services, rather than other currencies.

• Only a small portion of vendors currently accept bitcoin as a payment option, limiting its usefulness. However, as bitcoin gains mainstream acceptance, and the number of ways to spend and acquire bitcoin is increasing.

 

So as you can see, bitcoin does have some drawbacks at the moment. However, it is worth remembering that bitcoin, and other crypto-currencies, are still very new and their potential has not yet been fully realised.

As time passes, and education regarding crypto-currencies improves, we could begin see widespread adoption of bitcoin, or possibly other altcoins, as a standard method of payment. Alternatively, bitcoin may come to be regarded as a commodity or reserve currency, like savings bonds or gold. Either way, bitcoin has a lot of potential.

To keep up with the latest news regarding bitcoin and other cryptos, be sure to check out my blog at   http://BitBanx.com/.

Enjoyed this article? Why not check out How to Make Money With Bitcoin