Bitcoin is one of the latest things in the world of digitalization. This is a computer file that is always stored in a smartphone application or a computer’s software. It is also known as the digital wallet. When you enroll in this system, you can send a Bitcoin to the wallet of other persons, and they can also send some Bitcoins to your wallet. When you do these transactions, there are no middlemen or any authority that intervenes. It is purely a peer to peer transaction. In this article, we are going to look at the advantages and disadvantages of using Bitcoins.
Unlike other traditional methods of payment, Bitcoin transactions are discrete. This means that no one can trace your transactions because they are always not linked with your personal identity. Once you do a transaction, there is an anonymous address that is generated. This address keeps on changing for every single payment that you make.
You can also use a bitcoin mixer to further enhance privacy. We recommend to check this site as they go into detail: What is a bitcoin tumbler.
- Peer-to-peer centralized
What does the term peer to peer mean? The term implies that you can efficiently conduct transactions at the international levels without the need to require any approval from an external source. This is because the transactions are conducted on a network, and the system is designed to facilitate it.
- Reliable payments
You do not have to worry about making physical payments through Bitcoins. This is because the system is digital; hence you can do all your transactions online. You do not need to be stressed to visit a bank for you to make your payments. If you have a network connection, then you are good to go with Bitcoins.
- Fluctuating markets
Bitcoin markets keep on changing every day. You could place your bid expecting a good return, but then the market changes, and you do not get the handsome rewards that you expected. This is the biggest challenge of cryptocurrency.
- No Regulation
Regulation of the transactions is minimal, thus exposing you to risks of fraud. Once you experience fraud with Bitcoins, you can report nowhere for help and assistance.