Bitcoin is the most popular and the first-ever introduced digital currency, created in 2009 as an open source software by the pseudonym Satoshi Nakamoto.
Bitcoin is a peer-to-peer version of electronic cash that allows online payments to be sent directly from one party to another without going through a financial institution. Although there are more than a thousand cryptocurrencies in use today, bitcoin is by far the most widely used – the closest cryptocurrency equivalent to traditional, state-minted currencies.
Bitcoin is currently trading at $6,633.35 with the market cap of 113.7 billion USD. The current 24-hour volume of Bitcoin is $4,303,260,000.
Let’s discuss the pros and cons of Bitcoin:
Greater liquidity as compared to its peer
Bitcoin having this unique feature allows users to retain their inherent value while converting to fiat currencies like the US Dollar and Euro.
Full acceptance and popularity among the people
Hundreds of merchants accept Bitcoin payments. People are more inclined towards Bitcoin more than the other currencies.
Virtual transactions easier than regular currencies
As we know, Bitcoin works under the blockchain technology, which is decentralized in nature. There aren’t any transaction fees or red tape to navigate, as the case with credit card payments, ATM cash withdrawals, and international money transfers. While most of the cryptocurrencies lack international red tape, cross-border Bitcoin transactions are easier simply because it is more renowned around the world.
Lower transaction fees
Compared to other virtualized transactions such as PayPal or credit card payments, Bitcoin comes with a lesser transaction fee. Though the fee is variable, its rare for a BTC transaction to cost more than 1% of the value being transacted.
Privacy and anonymity in relative to traditional currencies
When you spend your money from credit cards or any other online transactions, the private merchants and the banking authorities are aware of the records, as it is being tracked. For Bitcoin transactions, the users will know the public address but won’t actually identify the individual user.
No dependency on creators or political agents
Since Bitcoin isn’t created by any state entity or any governmental organization, its independent of any political influence. Other cryptocurrencies which are less popular are characterized by concentrated holdings, which are held in some accounts.
Scarcity makes it more precious
There are only 21 million bitcoins, out of which 17 million has already been mined. Bitcoin’s scarce nature makes it more precious like scarce metals.
The major problem with Bitcoin is its transactions speed. The Bitcoin transaction speed is lower as compared to other cryptocurrencies like Ripple, Ethereum, and many other cryptocurrencies. As of now, Bitcoin can perform 6-7 transactions a second as compared to centralized payment networks like Visa which does 2000 transactions in a second.
Dark marketplaces are working towards the damage
Bitcoins remain attractive to criminals in spite of high visibility prosecutions of the offenders. Most shockingly, even some of the users threaten to corrode the system like Charlie Shrem. If these shady activities outweigh, the system might face marginalization.
Susceptible to price swings
Bitcoin price has been very volatile over short periods of time lately. Last year its value was more than 70% of what it is today. Hacks and scams and other external forces are the mechanisms behind the price fluctuation.
No recovery once the private key is lost, its lost forever
If you forget the wallet key, your entire money is gone. There is no way you can get it back. It is because it is only you who has the private key or the password. Bitcoins decentralized nature makes it impossible to arbitrate disputes between users. Some cryptocurrencies like Ripple have chargeback or refund function.
Maybe replaced by potential cryptocurrencies
There are many cryptocurrencies which are getting created with newer and advanced features. Some use “smart contract” systems that make the providers accountable for their promises. Like this, there are other spawning features which are gradually appeasing people’s heart.
Every cryptocurrency has its own pros and cons. That doesn’t make them unnoteworthy. As the experts have stated in their predictions that the cryptocurrency market is going to take over pretty soon. The market is being controlled mainly by ‘Bitcoin’. BTC’s impact is way higher than its peers. Whenever it comes to investment, there is a certain amount of risk associated with it by default. But one thing is undeniable,i.e. cryptocurrencies are one of the greatest creation humans have ever experienced.