What is the Problem with Bitcoins?

Digital currencies are once again on the rise and people are eager to invest their cash into purchasing bitcoins, which is the topmost bought cryptocurrency globally. Investors want to invest a large amount of their cash and buy bitcoins thinking it is an ultimate long term investment plan that will reap a lot of gain and profit in the future. But if truth be told, cryptocurrencies are as unreliable as they were in the beginning and if someone still wants to purchase it then they should do it bearing in mind all the unfortunate possibilities that are both predictable and unpredictable. The benefits of using bitcoins are indeed present and users despite the risk want to use bitcoins in their transactions.

via DW

Key Advantages: 

  • Instantaneous transfer and exchange between the cryptocurrency.
  • Easy access to the wallets through private key codes. 
  • Convenient payments to different countries for the purchase of items or services. 
  • Increase in the acceptance of bitcoins as a currency for payment. 
  • Transactional fees of bitcoins are comparatively lower than other digital currencies for international payments.
  • Liberation from authorities and government interference since the owner is in control of their currency and stores it on their own accord. 
  • Stress-free mobile payments attract more clients to start using bitcoin currency as their means of expense.
  • The banking fees are eliminated or account maintenance charges are deducted when bitcoin currency is used. 
  • It enables the users to use their bitcoins in privacy for transactions since no one calls to tell who the user is behind the screen.

But the disadvantages are simply too dangerous to just ignore and continue with bitcoins. Let us discuss the main disadvantages of bitcoins that can bring the problems with bitcoins in the light so future investors can be warned. 

The risky danger of theft and security problem

Criminal activity has increased a lot since the rise of bitcoin. Hackers come up with scams and fraud techniques to attract new and naïve owners of bitcoins and manipulate them into investing their currency and gain more profit. But they are nothing but lies to steal the coins and since the security is frail and easy to break in, getting away with the crime becomes easier.Here are some platforms which can protect you from danger and provide secure trading techniques with profit like british bitcoin profit.

Illegitimate use of Bitcoins in the black market

Dealing with bitcoins can be done in privacy and without being monitored. Where it is considered as an advantage, it is also the main reason why criminals tend to commit a crime and hideaway without having to stand accountable. The black market uses bitcoins to fund offenders and pay them for committing an illegal activity. And since nobody knows the owner who paid them in the first place, they too don’t have to think about the consequences of their actions.

Frequent fluctuation in the Bitcoin industry

The values of bitcoin fluctuate so often that the results leave owners with nothing but a loss in what they originally invested in the currency. Bitcoins fluctuate at an alarmingly rapid rate for example a person may have bought the currency at the time when it was high assuming he’s making a long term investment. But in the same year or six months later the value drops by 50%. And there’s nothing anyone can do about it. 

Bitcoins are replaceable 

Investors purchase bitcoins thinking that it is the most widely accepted and dominant cryptocurrency in the world and start utilizing it in place of real paper currency. They should know that bitcoins are not the only cryptocurrency in the world and several other digital currencies can replace bitcoins anytime bringing bad news for the long term owners of bitcoins. Nothing is guaranteed in the digital currencies industry. 

No return no refunds 

Unlike the majority of credit card and online payment organizations, once a user buys a product or a service and makes the payment with bitcoins there can be no returns or refunds. Even if the product arrives damaged or the services weren’t duly provided, no company will return the cryptocurrency in which it is paid. The client will not find any arbitrate to settle the dispute between the seller and the buyer. 

A negative impact on the environment 

Mining bitcoins consumes electricity in large amounts. China is where the world’s largest bitcoin mining is operated, and the electricity that is utilized for this activity comes from coal factories where laborers work tirelessly on wages that are below average.

Bottom Line: 

Buying bitcoins is tempting but investors should always do thorough research before they step into the bitcoin industry and start trading.

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