The Bitcoin (₿) cryptocurrency is being used all over the world as a form of electronic currency which can be transferred and made between people with the use of the internet.
The cryptocurrency known as bitcoin has its benefits and advantages which has benefited a lot of persons. Also, the bitcoin cryptocurrency has its flaws, demerits, and disadvantages which should be known about the cryptocurrency.
In recent times, the world has moved to the realm whereby cashless economy is the talk of the day. A lot of persons use online banking to make bank transactions and this has fostered the business relationships between customers, producers, resellers, manufacturers, and merchants.
One of the ways by which people make online and internet banking is through the use of the bitcoin cryptocurrency.
The Bitcoin cryptocurrency (₿) is a digital currency which is transferred, used and maintained by people through electronic means. The Bitcoin cryptocurrency doesn’t need any intermediary or central bank to save the currency in a storehouse simply because it is a form of electronic and digital currency which people hols but not physically.
The physical currency is the Nigerian Naira (NGN), Australian Dollar, American Dollar (USD), Japanese Yen, British Pounds and other forms of legal tender and currencies which are held, felt and seen by people. But the bitcoin cryptocurrency is a digital currency which cannot be felt, seen or touched by people but instead it is held as a wallet on the internet.
Ever since the bitcoin cryptocurrency made its way into the world in 2009, a lot of people invested in bitcoin by trading in bitcoin. Some others became bitcoin miners and traders who will buy bitcoin cryptocurrency, store them and later sell them to people in a bid to make a profit for themselves.
Most people in the world has benefited a lot from trading and using bitcoins. As a mobile currency platform, bitcoin has made it easy for payment of goods and services.
Table of Contents
Benefits of The Bitcoin Cryptocurrency
Business owners and merchants can receive payments in bitcoin cryptocurrency is their digital website or e-commerce store has a payment gateway that supports payment for goods and services with bitcoin.
This is to say that whenever buyers run out of physical cash or funds in their bank account, they will not be stranded or short of funds since they can still purchase goods with bitcoins or any other cryptocurrency available for them to use.
Another benefit of bitcoin is that it has helped a lot of business owners and merchants from suffering losses in their business. The Bitcoin cryptocurrency has helped to protect merchants from theft which may likely come up in fraudulent business orders and transactions.
Bitcoin has ensured safety and protection of funds since cryptocurrency transactions name with bitcoin can’t be reversed. Unlike the PayPal e-wallet, most merchants/sellers and business owners suffer loss whenever the transaction is reversed and hence, they are left with nothing to profit.
Lastly, the bitcoin cryptocurrency has ensured that transactions made through its platform are faster, cheaper and easier to make. The PayPal digital wallet does charge commission and fees which PayPal account holders make whenever they perform any transactions such as transferring and receiving of PayPal funds.
On the other hand, the bitcoin cryptocurrency has no standing fees or commissions which it charges bitcoin wallet owners and if a fee is to be charged on bitcoin transactions, it should be from blockchain communities and the charges are low compared to other digital wallets.
The cheapness, tranquility, and speed which the bitcoin cryptocurrency offers have made a lot of people to make use of their service in this age.
Advantages of Using Bitcoin Cryptocurrency
The usage of the bitcoin cryptocurrency has allowed people to have more control and power over their funds. Bitcoin has made people make use of their funds at any location and at any point in time without going through the rigorous protocol which made in banks.
Sending money across countries use to be a herculean task for people but the Bitcoin cryptocurrency has ensured that funds transfer can be processed faster, easier and better in any part of the world without problems.
The Bitcoin platform ensures safety and protection of funds for bitcoin miners because every bitcoin transaction is back up, recorded and encrypted on its platform.
Even with the high number of frauds, scams, and impersonation on the internet, bitcoin has its way of protecting its platform against identity theft.
Transactions made with the bitcoin platform is fast and cheap compared to other methods of payment in the world.
Disadvantages of the Bitcoin Cryptocurrency
Bitcoin is an electronic currency, the price is not consistent because it can change at any time.
Bitcoin has not yet grown to a large scale even though it is a popular option for online banking among different people of the world.
Most bitcoin miners and traders have lost fortunes because they have no knowledge of how the bitcoin cryptocurrency works.
Most international banks and companies of the world fail to recognize bitcoin cryptocurrency has a legal tender that can be used to make payments for goods and services.
Most people are ignorant of the bitcoin cryptocurrency and they get scammed because they do not have the understanding of the bitcoin cryptocurrency.
The use of bitcoin comes with a lot of risks, this will be discussed below.
Risks of Bitcoin Cryptocurrency
Mining and storing bitcoins in a bitcoin wallet comes with major risks which have made me uninterested in storing cryptocurrencies. I didn’t say that you should not store up wealth and become rich by trading in bitcoins and other cryptocurrencies but I’m trying to let you know about the risks involved before you invest your money in bitcoins.
You might have read the disadvantages above, it is pertinent for you to get knowledge on the risk of the bitcoin business in case you are moved, threatened, brainwashed, forced or persuaded to trade the bitcoin cryptocurrency.
You Lose Your Money Without Any Compensation
In the course of trading on bitcoins, you may lose your money if there is a fraudulent transaction with your credit/debit card. You will not only lose your money but you will not get any insurance cover or compensation which will cover for the damages and loss.
Although bitcoin cryptocurrency employs some safety and protection covers; if you are to lose your money in any transaction while storing and mining bitcoins, your money is gone forever and can never be regained or restored.
Bitcoin Increases The Rate of Money Laundering, Criminal and Illegal Activities
As the bitcoin cryptocurrency grows and becomes widely known, a lot of businesses, companies, and brands accept the cryptocurrency as a medium of payment and exchange. Bitcoin has boosted the activities of money launderers, drug dealers & barons, gamblers because it has no restriction on the circulation of the currency.
Wiping and shutting down the bitcoin cryptocurrency would be a serious challenge for federal law enforcement agencies and regulators to do. And if bitcoin is to be pushed out of the market, a lot of business, commercial and economic activities would be affected since it has gained acceptance by people.
Profit Reduces and Diminishes With the Introduction of a New Cryptocurrency
If a new coin or a new cryptocurrency is to be introduced, the profit and return of investment made will reduce and diminish significantly.
The bitcoin economy has leaped in bounds since its introduction in 2009, this has made a lot of investors to buy the bitcoin cryptocurrency in anticipation that the prices will appreciate and increase. If a new cryptocurrency or coin is to be introduced, the profits and return on investments on other coins will likely diminish.
These risks have made me turn and shun talks that will make me invest in bitcoin and other cryptocurrencies. If you are aware of the major types of crypto scams, you will realize that the Bitcoin trading is risky and tricky. if you don’t have good experience, knowledge, and training on how it works, you may likely lose money if you should invest.
A lot of people store up bitcoins with the mindset that they will become instant millionaires or billionaires if it appreciates. Bitcoin may be a wealth mining opportunity but since its a digital currency, it can crash at any time.
I’m not saying this out of ignorance but I will still vouch and recommend other businesses to invest your money than to invest in bitcoins.
If you should invest in agriculture with a good business plan, you are sure of regaining your capital and making a profit from the business in a five-year period.
After reading this article, I hope that you have gotten insights about the bitcoin cryptocurrency. The benefits, advantages, risks, dangers, and disadvantages have been discussed on the bitcoin cryptocurrency. You can share this article with your friends because the article is worth sharing.
Drop your comments and thoughts in the comments box. If you have questions regarding this, you can get to me by commenting on this post, I will reply to them. Farewell !!!
Zara is a business consultant, life coach, content creator and a media entrepreneur. On this blog, I share various tips as I inspire my readers and provide business ideas that would generate revenue for them. Feel free to read and share my posts with your friends.