Bitcoins of Technology Era
Pros and cons of Bitcoin
As the world rises with the new dawn of a technologically changing era, the popularity of Bitcoins is increasing as well. Since, most of the portion of peoples’ lives are already driving with technology, in the form of using gadgets, machinery and artificial intelligence (AI), a trend is now about to change the face of the world in terms of virtual currency through cryptocurrency. This blog is just not about Pros and cons of Bitcoin, it also informs you regarding Bitcoin price and Bitcoin trading.
From the time of the creation of Bitcoins, it has primarily been used and so-called experimented by rich investors and many high profile individuals. It could soon replace credit and debit cards when purchasing lifestyle and household commodities from merchants as the existence of bitcoin value in bitcoin market.
Bitcoins are cryptographic decentralize cryptocurrency that is rapidly reaching out by tech enthusiastic individuals and organizations.
So, before you step into the digital cryptocurrency realm, it is necessary that you understand the various uses as well as the downfalls of Bitcoins. This is to keep you on the safe side and prevent you from any uncertainties that you may encounter to buy bitcoin.
Pros & Cons of Using Bitcoins
There are many advantages as well as quite a few disadvantages of using Bitcoin currency or bitcoin wallet online in the present time. So, let’s take a look at some of these pros and cons of Bitcoins that are as follows:
Pros of a Bitcoin
Some of the advantages of using Bitcoin are as follows:
Adopts open-source platform
Bitcoins are set on the open-source software (OSS) architecture and with an open source license. The open-source platform provides security, affordability, transparency, perpetuity, interoperability, flexibility and localization. This open collaboration is capable of sustaining in the long term.
Free from central authority
Bitcoins do not have any centralized authority. This means that there is no governing body or a federal system to control this Bitcoin cryptocurrency system. It is the first decentralized digital currency that works without a central banking system and performing currency role in media with bitcoin chart.
It follows non-traditional mining
Bitcoins are mine not following the traditional methods, but by following the encrypt cryptographic form of mining the digital currency. Here, the sender can have the digital currency encrypt with a private key which can only decrypt by the receiver.
This method of securing a Bitcoin keeps manipulation of the decentralized currency at bay. All transactions are digitally signed and the signature is verified by the network using the public key.
Secured payment method
Bitcoin, being a decentralized cryptocurrency, is a secure method of carrying out transactions digitally. Since Bitcoins are digital, they follow the cryptographic method of securing the currency. This means that the digital cryptocurrency cannot be counterfeit by hackers.
All transactions that find out in Bitcoins are encrypting with an intricate computerize puzzle. This makes your online transactions safe. Also, the history of transactions of Bitcoins is kept in a digital log book, a public ledger called blockchain.
Bitcoin is cost-efficient
Because of its optional fees system, Bitcoins are cost-efficient. Unlike carrying out cash transactions with a certain amount of fees levied by banking organizations, this is not so with Bitcoins. When using Bitcoins, you can easily transfer funds and eliminate the inconvenience of centralized authority.
No need for personal information
When you are using Bitcoin as a medium in monetary exchange, you do not have to provide your personal information. This is a positive thing because Bitcoins have been created keeping in mind the security of individuals.
Cons of a Bitcoin
Unlike the various useful advantages of using Bitcoins, there are also some drawbacks that still makes many consider in re-thinking about using this decentralized cryptocurrency.
The various disadvantages of Bitcoins are as follows:
Requires an internet connection
Since it is a digital currency. Thus, in order to use pay with Bitcoins and carry out transactions. You must be using an internet connection on your computer or device. This is one drawback that could limit Bitcoins which is not the case in paper money.
You can carry paper money with you, wherever you go. However, you cannot do this with Bitcoins as they are an electronic form of money.
Bitcoins are volatile
Bitcoins are subject to erratic changeability. Its value is not fixed as it keeps varying. The high volatility usually overlaps with high volume and the price drop. The value of the Bitcoin keeps changing. This rise and fall in the value also create risk for investors who seek in earning profits.
Bitcoin is unusable if private key is lost
One major disadvantage of using Bitcoin is that due to its high security. All transactions can protect by a digitally signed private key. Thus, if you lose the private key that is applying for encrypting your Bitcoin, your Bitcoin will be of no use.
Limited supply of Bitcoins
A major disadvantage of Bitcoins is that the digital currency has its supply limit of just 21 million Bitcoins in the years to come. This scarcity might lead to challenges as not everybody would get the opportunity to use Bitcoins because of the monetary policy that is levied by the creator of this cryptographic digital currency asset.
Misused for illegal trading
Bitcoins have become largely popular and demanding among individuals and organizations who practice illegal activities, such as trading weapons, drugs, money laundering and many other activities that are illegal and against the law.
Thus, it can say that Bitcoins are misusing for illegal trading as it yields huge amounts of profits. That being a fine medium of exchange for such individuals and organizations.
Is high in energy consumption
Since Bitcoin is a digital currency. Therefore, it requires energy-hungry equipment. This is because the process of Bitcoins mining uses more energy. The decentralized network of miners mints more than a dozen Bitcoins each day.
Therefore, energy consumption is one major hurdle of Bitcoin mining, as it requires powerful and sophisticated hardware. You can use your computer’s CPU or GPU (usually ATI and NVIDIA graphics are requiring) to mine for Bitcoins, but the process is very slow and takes up huge resources of your computer.
The various pros and cons of Bitcoin that are mention above are facts rather than being the opinions of an individual technology enthusiast. As such, it can take into account that everything in this world has its own set of uses and drawbacks. This also affects people and organizations in one way or the other, both positively as well as negatively.