There are many cryptocurrencies like Bitcoins (BTC), Litecoin (LTC), Ethereum (ETH), and Neo (NEO), and so on. Among all Bitcoins are mostly allowed cryptocurrencies by many countries like the US, Canada, Algeria, Bangladesh, Bolivia, Ecuador, Macedonia, India, and Nepal. This article gives an insight into whether the investment in Bitcoins is a wise decision using discussing the pros and Cons of the Bitcoin system. Also know more about the bitcoin trading through websites like clickmoneysystem.
Bitcoins
The Bitcoins are also known by terms like ‘Virtual Money,’ Digital Money’ or ‘Cryptocurrencies’. They are just cash available online. It is similar to the currency system we have now; for example, the $1 currency rate is equivalent to Rs. 72 in INR currency the Bitcoins also has conversion rates to other valid currencies like Dollar, Dirham, and INR, and so on. The unique thing about Bitcoins is that it does run pr controlled by any banks or government agencies. They are no pre-defined rules and regulations for Bitcoin exchange.
Advantages of Bitcoins
The following are the advantages of Bitcoins:
- Simple and speedy transaction
- Limitations in supply
- Concealed
- Cost-effective
- Simple and speedy transaction
As there are no middlemen like Banks or any other government agencies, you can send Bitcoin to your friend’s Bitcoin wallet in few seconds without any transaction fee, or you do not have to wait for days for your transaction to happen. This is one of the most attractive features of Bitcoin.
- Limitations in supply
Unlike our currency system, where the currency has no limits and gets printed under the government’s control, the Bitcoin has a limited supply of only up to 21 million Bitcoins. Because of this, there will never be inflations as the Bitcoins will be spent with limitations owing to the rise in the price of a Bitcoin. So there will not be inflation in the Bitcoin at any point.
- Concealed
As the Bitcoins do not have any banks or any government agencies to control, there are no certain rules and regulations for them. So many people mistake Bitcoins as unacknowledged. But for every Bitcoin send or receive transaction, there will be public record, called Blockchains where every Bitcoin transaction is recorded as Blocks. But your name or any identity of yours will never be revealed at any cost. Every block in a blockchain will be linked to an address. So people might see that address, but they will be able to link that to your address. Many people like Bitcoin, as there are no stipulated rules like how much minimum balance can be maintained in your account or how much money can be transacted and so on. It is all very private to the customers.
- Cost-effective
Bitcoins never incur any transaction fees. It makes a transaction free of cost. So your digital wallet will always have more money. But the banking systems have Visa and Maestro cards for money transactions, which will incur some significant fees for the transaction.
Disadvantages of Bitcoins
The disadvantages of Bitcoins are:
- Lots of ups and downs in Bitcoin rate
- Performance degradation concerning speed
- Irreversible Bitcoin transaction
- Lots of ups and downs in Bitcoin rate
The Bitcoins rates do not have a steady pace for example in a week there will be 20% raise, and in the next subsequent weeks, there be 30% decrease, and these fluctuations go on, and there is no prediction on when there will be a hike and when there will be a decrease. So it is risky to invest money on Bitcoins which is never to be lost at any circumstances.
- Performance degradation concerning speed
At present The Bitcoins are facing the problem of slower transaction speed and at the same time higher transaction fees, where other cryptocurrencies like NEO, ETH, etc. are maintaining speedy transaction and fewer transaction fees.
- Irreversible Bitcoin transaction
The major drawback of Bitcoins is that, if you send the Bitcoin to a wrong address, you can never reverse them back. There are also issues like if your wallet is in the cloud, there is a case of hacking and if your wallet is in your computer, the file might be destroyed by Virus, leading to losing your Bitcoins.
Hence, this article has given details about various aspects of Bitcoins, and if you plan to invest in Bitcoins, it is necessary to store your coins with proper protection mechanisms.
