Pros and Cons of Bitcoin
Bitcoin, the world’s first cryptocurrency, and the most popular one, introduced the concept of cryptocurrency and blockchain to the world. Cryptocurrencies are digital currencies whose transactions are recorded and maintained on a publicly shared ledger. Cryptocurrencies work on the blockchain technology which powers this publicly shared ledger and provides security to the entire network.
In a blockchain network, the ledger is shared between a group of peers who are connected on the same network. All the transactions that are recorded on this ledger are verified by “miners” who solve cryptographic puzzles in order to validate these transactions. Miners are paid in a small fraction of Bitcoin for every transaction that is validated. Thus, in the world of cryptocurrencies, there is no need for a centralized authority like a bank for carrying out transactions.
The main reason for the popularity of Bitcoin (and cryptocurrencies in general) is independence and anonymity. While the use of cryptocurrencies for transactions is far more streamlined than regular FIAT currency, it does have issues with the speed and costs involved in such transactions. Mentioned below are some of the pros and cons of using Bitcoin:
Pros of Bitcoin
Bitcoin transactions can be carried out at any point of time and to any location in the whole world. Cryptocurrencies are not restricted by typical protocols and regulations that cause hindrance in international FIAT transactions. Bypassing traditional banks results in faster and cheaper payments with Bitcoin.
Just like digital transactions with FIAT currency, cryptocurrencies like Bitcoin can be used from computers, smartphones, and debit cards. Bitcoin also has a lot of technical features that make it valuable to businesses such as multi-signature authorization, two-step verification, and complete transparency during accounting. Added to this, the very nature of blockchain technology provides complete data security and makes these ledgers tamper-proof.
Cons of Bitcoin
While there have been several attempts to enable offline payments using Bitcoin, cryptocurrency transactions are still heavily dependent on an internet connection. While Bitcoin is extremely fast and streamlined for international payments, it still has a long way to go to prove itself for retail purchases. It is still very difficult to buy physical goods and products like groceries with Bitcoin. Added to this, conversion of Bitcoin to FIAT currency is currently an expensive process. The transaction rates for Bitcoin are still not stable ad the market is heavily unregulated leading to many kinds of unethical practices.
Gedi is passionate about fast cars, video production, travels and the Internet. He has years of experience working as User Interface Engineer with a demonstrated history of working in the information services industry. Skilled in Web Applications, NodeJS, React, Redux and UI. Growing interest in Bitcoin and cryptocurrencies, he joined TheDailyCoins as a writer.