Bitcoin operates with the help of a technology known as blockchain technology. It is a digital currency that can be used by people to purchase different products and services anonymously. It is free from any sort of transaction or international transaction fees, mainly because it is completely decentralized, and no form of laws or regulations are applicable to it. The reason people prefer to invest in cryptocurrency, is because of low investment costs and a high rate of return after a certain time period is passed.
Ways to Get Bitcoin
The following three ways are how people can get bitcoin for themselves:
- People can purchase new bitcoins with the help of the mining process.
- They can exchange bitcoin for different products and services.
- They can participate actively in bitcoin exchange or trading, where people buy or sell bitcoin in exchange for different currencies.
Bitcoin is the most versatile and useful form of cryptocurrency, as it can help people pay off their debts in the form of bitcoin exchange, but at the same time, one cannot deny the fact that it can be used for illegal or criminal activities such as purchasing different forms of drugs, etc.
Advantages of Owning Bitcoin
The following are a few advantages of owning bitcoin:
- It has a worldwide acceptability factor, which means that crypto trading or exchange can be carried out anywhere people want. There are numerous merchants, businesses, companies, and different organizations that are integrating bitcoin into their system. Thus, they are accepting payments in the form of digital currency. People now no longer have to face the hassle of sending money from one country to another. The transaction can be carried out easily in a matter of a few seconds.
- Furthermore, it ensures that cross-border transactions can be carried out in a smooth yet efficient and hassle-free manner. It is one of the easiest ways to transfer money from one country to another. The transaction fee for both local and international transfers to transactions is the same, thus people can easily use this mode of payment.
- It is very safe to use, as the entire process of owning and transferring bitcoin from one person to another is a very secure process with the big money rush app. No one can access someone else’s account, as every account is protected with the help of a private key. The private key is shared with the owner of the account only. It is very unlikely for anyone to hack the account. However, one still needs to be very careful when it comes to sharing sensitive information with strangers, or with people who are not trustworthy. In order to make the transactions, and to successfully send money from one account to another, the person who is transferring the amount needs to share the public key in order to access the amount transferred.
- It is an independent form of currency, as no one has control over it. It is not bound by any form of rules and regulations. There is no central authority governing the currency or taking important decisions regarding the transaction or service fees. It is completely decentralized, which means that the owners have complete authority and control over their account, and the financial assets they own.
Disadvantages of Owning Bitcoin
There are two sides to everything, and not everything can be perfect. Hence, the same is the case with bitcoin. The following are a few disadvantages of owning bitcoin:
- It can be used for fraudulent activity, such as the purchase of drugs, and it can damage the overall reputation and usefulness of the currency in the world at large.
- Once a transfer is made from one account to another, it cannot be canceled. There is no chargeback or refund policy, so everyone should ensure their transfer twice before the transaction is carried out.
- It can be replaced by some other cryptocurrency in the coming years, mainly because it has a limited market cap of $21 million, which means that once all coins are mined, then new coins cannot be created. People can then only trade or exchange the existing coins. It is likely to increase the market value of the digital currency, but it might not last long for a long period of time.
- The price of bitcoin is highly volatile, which means it is changing quite frequently, and as a result, people might get confused regarding how they should make use of their investment.