Bitcoin is a digital currency that came on the scene about 10 years ago. It is actually a bunch of encryption keys that may be used as a form of currency in some transactions that allow for such. These keys can be kept in online or offline wallets. Bitcoin was developed based on military grade cryptography and is also based on the quite secure blockchain technology.
Right from the time, it was developed, bitcoin has made inroads, gradually being recognized by governments, businesses and used for transactions by individuals. Its value also saw a steady rise in value as measured in dollars at its inception and then an astronomical increase in value in the recent years. This is may be due to some countries accepting it as a form of payment. In truth, no one can predict the future of bitcoin, but for now, we can only discuss what the merits or the demerits may be when you choose to invest in bitcoin.
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The Merits: Advantages of Bitcoin 2018
- Regardless of how secure card transactions are touted to be, there are quite a number of difficulties they have found insurmountable. A few of such difficulties include identity theft and hacking. Using bitcoin saves you all this hassle. The transactions are sent to ever-changing address keys that are also called wallets. Having an ever-changing address increases anonymity and makes it difficult or even near impossible for a user’s identity to be stolen. Once the bitcoins are stored in offline wallets, they are impossible to hack.
- The transactions are decentralized. Unlike the centralized transactions associated with cash and card transactions, bitcoin transactions are carried out via decentralized private computers used for mining and then the transaction is recorded on a public blockchain.
- You can transact business internationally without having to pay foreign rates.
The Demerits: Disadvantages of Bitcoin 2018
- Online coins can be hacked. Once hacked coins are lost for life.
- If you lose the offline wallet, the coins are lost forever.
- Although Bitcoin has earned the name of ‘digital gold’ it is still not as stable as gold. The value of gold changes slightly as the market moves, but bitcoin values can quickly appreciate and quickly depreciate depending on market movement. Bitcoin is very volatile.
- It is still not yet accepted by a lot of businesses as a means of making payment.
- Compared to cash transactions, the speed of bitcoin transactions is quite slow.
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