Question

What are some pros and cons of Bitcoin? Would you feel safe using it?

Answer 1

Bitcoin can be considered or is widely known as the world’s first “Decentralized digital currency”. It was first launched in the year 2009. Its pros and cons are:-

PROS

1. The use of Bitcoin is secured by military grade cryptography technology

2. It is kept safe on a private network that is separated from the world.

3. Protection of identity is its main features because there is only an account number and there is no information associated with that account.

4. Sending and receiving payment is done at a very low cost if any.

5. There is no need to pay foreign exchange rate in order to pay to someone in another country.

CONS

1. Bitcoin transactions are irreversible, I.e the process of a refund depends upon the will of the parties involved in the process. This creates a liability for the user.

2. There are no governmental laws regarding the safeguarding of people, their safety or any other regulation which would help protect a person in the case of a hack or any other liability.

3. There is a huge fluctuation in the value of the currency which is the reason it is just as easy to lose money as it is to be profited from it.

4. No support from major retailers or services.

5. There is no warranty, liability protection, reward points like with other bank accounts, credit cards etc.