Global market is now keen on Bitcoin investment, recently, the price of Bitcoin has hit yet another all-time high. With cryptocurrencies generating huge gains and attracting a large rabid following, it’s time to discuss about its advantages and disadvantages.
- Bitcoin is now a popular investment target with security and payment freedom that cannot forge transaction information and no one can intervene, including banks and governments, etc. It is able to send and receive Bitcoin anywhere in the world at any time.
- As long as you know the payment address of both parties, then you can do trade in a very short time.
- Low handling fee is an attractive reason for traders to invest.
- Anonymous mechanism is a good protection for traders as both parties won’t know any information of each other.
- Non- inflationary – Anyone can do their Bitcoins by themselves through computer, that is similar to the central government can get fiat currencies printed as much as they want. Only 21 million Bitcoins will ever be created and this is known to everyone. This means that after all the Bitcoins have matured, more number of bitcoins cannot grow and thus inflation won’t be a problem.
- Regulation issue – if bitcoin is not recognized by organizations, it would lose its value.
- Since the anonymous mechanism, it may be used to do cross-border transaction illegally, like hacker attacks which can’t be found due to anonymity. If that happened again and again, it’s possible that organizations would cancel the recognition of Bitcoin.
- Bitcoin is under development, it is still at its infancy stage with incomplete features and it needs to work out its problems just like how any currency in its beginning stage would need to.
- When people using Bitcoin, it is no official buyer protection, when the seller doesn’t send the promised goods, nothing can be done to reverse the transaction.
- In fact, so many people lack of awareness and understanding for Bitcoin, they need to receive the knowledge about digital currencies, in this way, Bitcoin is able to apply in their lives.