Bitcoin is additionally referred to as digital currency or a cryptocurrency. This cryptocurrency was invented in 2009 by an unknown called “Satoshi Nakamoto”. This cryptocurrency concept is different from regular currencies. We use our regular currencies in the day to day offline market to buy and sell things. But Bitcoin is merely utilized in the web market or used as digitally.
Everything has its own advantages and disadvantages. Noting is purely ideal or always giving benefits. So cryptocurrency only exists digitally, we can’t bring this in our wallet or can’t able to pay hand to hand like coins and notes. Bitcoin is the most famous cryptocurrency nowadays.
Advantages of Bitcoin
No third party Involvement –
There is no third party involved with the process of Bitcoin. Here third party involvement means Bank. During transactions with regular currencies, the bank will manage all our details like record our transaction on their server. And verify the transactions. But in the Bitcoin transaction, there is no external agency involved.
No need to pay any external charges –
Bitcoin transactions are not controllable by any external agencies like banks so it does not contain any external charges like tax and credit card charges.
During international payment, banks are charged much but in the Bitcoin process, there are no such charges.
High returns on Investment –
Investing in Bitcoin is profitable. The price graph of Bitcoin is not steady with respect to time. So investing in this gives high returns with less time frame. Nowadays one Bitcoin price is more than 8 Lakh rupees in Indian currency but it is not steady, its graph may increase or decrease. No need to pay any tax for your investment.
Fully controllable by user –
Bitcoins do not exist physically. It is only stored in the user’s digital account which is accessible through a mobile application or from a personal computer. Bitcoin looks like a line of codes and secured through cryptography. The transaction details of Bitcoins are in Blocks and these blocks are verified by a Bitcoin miner and add it to the Blockchain.
Every bitcoin is unique because for each Bitcoin transaction it is generated uniquely and the address of bitcoin is not trackable because it also changes with every transaction.
Disadvantages associated with Bitcoin Transaction –
Price is not predictable –
As we discussed above the price line of Bitcoin is not constant. It is also not predictable by anyone. It’s not like a stock market investment, in the stock market we can predict the price graph of each investment But the Bitcoin price is not predictable.
Frauds during Bitcoin Process –
Bitcoin transactions are not fully secure for all time because in many cases bitcoin users are facing fraud Bitcoin transactions. It means many times people are storing their original Bitcoin in their wallet and sending copied Bitcoin which is not unique.
Limited market place –
Bitcoin is the most popular cryptocurrency but there are some market limitations that is if buyer and seller are both interested to deal with Bitcoin then only Bitcoin transaction is possible.
Ex – someone interested to buy something with the exchange of their Bitcoin and the seller also accepts the payment in Bitcoin. In this situation, you are able to buy things from the seller with the exchange of your Bitcoin.
Not Trackable –
The Bitcoin transaction is not traceable so many illegal agencies are using the Bitcoin transaction. Due to this reputation and usefulness of Bitcoin is decreased. We can’t track the Bitcoin so there is no refund if you once lost your Bitcoin.
Less familiar –
Nowadays Bitcoin is famous but still, most of the people are not trusting on this because of its fluctuated price line. So it is not familiar to people like our regular currencies.
We discussed various advantages and disadvantages of Bitcoin but the biggest downside of Bitcoin is its price graph. The price of Bitcoin is not constant, sometimes it’s high and sometimes it goes very less. Its price graph is not predictable otherwise Bitcoin is the best and most popular cryptocurrency nowadays as the Bitcoin wallet. Investment in Bitcoin for a short time is profitable but for long term investment in Bitcoin may increase the chances of losing your money.