When we talk about bitcoins, we’re referring to a digital currency that runs through a decentralized system which keeps it safe from government regulations. Bitcoin was the first cryptocurrency that was launched and owing to its major success, a lot of other cryptocurrencies were also introduced in the market. To this day, bitcoin remains the most popular and preferred digital currency. With the passage of time, bitcoin is becoming more practical and useful as organizations and shops are now moving towards accepting bitcoin payments.
The cryptography that forms the basis of bitcoins’ security prevents the currency from devaluing through the introduction of fake bitcoins in the market. It uses highly complex algorithms that make it very difficult for preying eyes to hack into the source code. In this article we will explore the uses of bitcoins alongside its pros and cons.
USES OF BITCOIN
As mentioned above, bitcoins are now being used for shopping purposes as vendors and merchants are shifting towards accepting bitcoin payments. In addition to that, if you’re a bitcoin holder, you can give a relevant number of bitcoins to someone who has performed a service for you or even to settle debts or pay off your loans. In addition to the buying and selling of goods and services through bitcoin, you can also exchange your bitcoins with other currencies, these can be other cryptocurrencies or flat currencies.
People are also using bitcoins for trading purposes and have generated some very generous profit figures by applying the right trading strategies. Visit this site to explore one of the many commendable trading options that are available. Through Bitcoin Prime, you can open free trading accounts and trade through superior technological tools to ensure faster and more profitable results.
Bitcoins are also used in investing, for instance if you’re looking to invest in a BTC company then you can utilize your bitcoins for this purpose instead of putting cash into the company. Last but not the least, bitcoins are also being used for donation purposes. The decentralization of bitcoins has also given it some unwanted freedom that allows users to utilize their bitcoins for illegal and illicit activities.
PROS OF BITCOIN
In comparison to traditional currency, bitcoins offer a lot more advantages which have made them more appealing and have thus led to their success. Let’s look at some of the advantages that bitcoins offer:
- Offer more liquidity as compared to other cryptocurrencies; this is especially beneficial in instances when people require cash and can easily get their bitcoins converted into flat currency. In comparison with other cryptocurrencies, bitcoins are the most liquid.
- Multiple uses; as mentioned above, the uses of bitcoins aren’t just limited to the virtual world. People can use them for selling and purchasing, trading, investing, donating and many other purposes.
- Ease of transactions; due to their digital nature, bitcoin transactions within and outside the borders of a country are carried out in the same manner. Due to this, there aren’t any additional charges when international transactions are being carried out. As compared to money transfer, bitcoin transfer is cheaper; money transfer usually charges around 15% transfer fees whereas bitcoin transfer will only cost you 3% transfer fees maximum. This is relatively low as compared to other cryptocurrencies.
- Anonymity and privacy; Bitcoin accounts have a built-in privacy protection that is aimed at shielding the privacy and anonymity of bitcoin holders. Users can choose to reveal details about their public persona or keep it a secret, depending on their preferences.
- Freedom from political agents; Bitcoin is a decentralized digital currency; therefore, no government or financial regulatory authorities can impose rules on it. Since government agencies can’t intervene in bitcoin operations, bitcoins are not subjected to any political influence and governments don’t have the authority to freeze or seize accounts or bitcoin units.
CONS OF BITCOIN
Like everything else, bitcoins also have their disadvantages. These include the following:
- The use of bitcoins in the black market may stain its reputation
- Bitcoin scams and fraud can plummet users into tremendous losses
- Bitcoins have a high price volatility which makes them a risky investment
- No refund policy
- Due to new cryptocurrencies being introduced every now and then, bitcoins face the threat of being out-run by some other currency.
There is no doubt that bitcoin has some tremendously appealing features, however before investing into bitcoins you should weigh the pros and cons mentioned above and decide whether the pros outweigh the cons or not. Over the years, bitcoins have seen a progressive trend and despite some fluctuations, bitcoins were able to make a gradual but fruitful recovery.