Bitcoin, you read at least 10 times a name a day if you are interested in finance. It has its ups and downs. At the Eldorado for the investor, it scares, demonizes by governments, it is clear that despite every...thing, it is still there, and in the eyes of many specialists it is strengthening and democratizing.
But in essence, what should we know, is it too late, is it reliable? In order to help you here are the pros and cons.
The pros and cons of Bitcoin
Its major advantage of Bitcoin is that it is both a digital currency and a payment network.
The bitcoin blockchain cannot work without BTC, and vice versa. Basically, this system can work without intermediaries, government officials, monetary economists, and other intermediaries or regulators.
Plus, clearly, everyone can store and trade their value with others no matter who and where.
Benefits
- You can make payments with Bitcoins 24-7 anywhere in the world, without a banking system.
- International transfers are faster and less costly than traditional banking services.
- Bitcoin is the only asset you cant grab.
- Anonymous and anyone can open an account via the Internet without verification or credit history. This is particularly beneficial in underfunded regions and Third World countries where most people find it difficult to access money.
- Its use has become democratized - from a desktop computer, mobile phone or debit card.
- Unlike fiat currencies, Bitcoins are deflationary, which means that their value is made to be deflationary.
- Compared to other cryptos, Bitcoin has the greatest notoriety, the most developed ecosystem and in fact the most accepted among traders.
- The Lightning Network allows the use of Bitcoin for small inexpensive daily transactions.
- Bitcoin upsets the money monopoly by offering an alternative to people who distrust their government, certain institutions, certain politicians or who simply believe in decentralization.
- It is an anonymous money transfer solution, ideal for emerging countries or diaspora wishing to transfer funds to the country of origin. A competitor for Western Union and Moneygram.
The Bitcoin Cons
- Little or no regulatory oversight
- Converting Bitcoins to Fiat often involves costly fees.
- Not all stores and service providers accept Bitcoins.
- Bitcoin transactions are immutable, which means that once the money leaves your wallet, there is no way to get it back.
- Most people are not ready to take full responsibility for their assets and cannot manage their private keys securely.
- Learning all the ins and outs of the Bitcoin ecosystem presents a steep learning curve.
- Securing Bitcoin requires basic cybersecurity knowledge. While the network is virtually inaccessible, organizations and individual users are.
To summarize, it is better to start with fractions of Bitcoin and to go through a Broker with licenses, in order to familiarize yourself with this asset and to evolve in a secure environment.Show more >
