What is Bitcoin: history, benefits, and problems

Bitcoin

Bitcoin is considered the most favourite Cryptocurrency in the Crypto world.

With its increasing value, just after a massive drop during the COVID 19 pandemics, it will be implemented with many large organizations. Let’s have a thorough look at Bitcoin.

What Is Bitcoin?

It is a digital currency or Cryptocurrency. Like other cryptocurrencies, Bitcoin is also controlled by a decentralized user network that does not come under any centralized banking system or national governments. Bitcoin is the most popular Cryptocurrency and has a price value of more than $ 36,000 by 12th January 2021.

History of Bitcoin

In 2008 18th August, “bitcoin.org,” a domain name was registered. After that, Bitcoin was titled as an electronic cash system that works peer to peer. On 31st October 2008, Satoshi Nakamoto authored a link to a paper. Later it was posted to a cryptography mailing list. For more information you can visit Bitcoin Profit

What Are the Benefits of Bitcoins?

There is not only one but several reasons behind the popularity and increasing acceptance of Bitcoins. So, let’s have a look at the benefits of Bitcoins.

  • Till now, Bitcoin is the best open financial system. One can use Bitcoin for making a payment 24/7 though there is no banking system.
  • International money transfer becomes cheaper and faster with Bitcoins than the traditional banking systems.
  • If you take proper precautions, then Bitcoins are the only asset that cannot be snatched from you. Apart from that, no one can stop you from performing a Bitcoin transaction as it is uncensored.
  • Just like other digital currencies, you also can spend Bitcoins from your credit cards or mobile phones, or computers.
  • The value of Bitcoins is set to appropriate by design. So, Bitcoins are deflationary, unlike fiat cash.
  • Bitcoin is pseudonymous. The Internet allows anyone to open a Bitcoin wallet without any kind of credit history or verification.
  • Till now, Bitcoin is the best portable asset. You can make the Bitcoin transfer through radio waves and satellites.
  • If we compare it with other Cryptocurrencies, Bitcoin is the most acceptable Cryptocurrency among various organizations and retailers. It has the most developed ecosystem, along with the most liquidity and brand recognition.
  • Account transparency and multi-signature authorization make it perfect for business purposes as well. The blockchain keeps all transactions transparent and more public, which is beneficial for businesses.
  • The concept of programmable money is introduced by Bitcoin and enables future financial innovations; for example, “smart contracts.”
  • By offering an alternative, Bitcoin distorted the monopoly of money. It is excellent for the people who do not trust their government, politicians, certain institutions, or simply have faith in the power of

What Are the Disadvantages of Bitcoins?

Although there are so many advantages of Bitcoin, being a new technology, it still has room for improvement. Here are the cons of Bitcoins:

  • There is no option of offline Bitcoin. So, you need to depend on the availability of the internet in order to use this currency.
  • If you want to convert bitcoins into fiat cash, you need to pay a fee, which is costly.
  • Though the number of retailers and service providers who accept Bitcoins is growing, till now, not all the service providers or shops accept payments through Bitcoin.
  • Bitcoin is still in the development phase. So, the transaction fees, as well as speed, varies based on network congestion and mining efficiency.
  • The Bitcoin transactions are inflexible. That means once your money is out of your wallet, there is no chance of getting them back.
  • Many people failed to manage their private keys and are not ready to take full responsibility for their assets.
  • Most Bitcoin applications do not have a fool proof user interface. Apart from that, the network is not ready yet to serve everyone in this world.
  • One needs basic cybersecurity awareness and knowledge for securing Bitcoins.

Final Verdict

Though Bitcoin has a lot of disadvantages, the features that this digital currency has is really impressive. Due to these features, the popularity of Bitcoins is rising day by day. In spite of its volatility, it is getting accepted by many large institutions as well.

Read more:
What is Bitcoin: history, benefits, and problems

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>