Question

In your own word, What are bitcoin advantage and drawbacks as a payment platform ? Is it the future of digital payments ?

Answer 1

Bitcoin is a virtual currency or cryptocurrency, it is controlled by a decentralized network of users and it is not in control of any central banking authorities or national governments. Out of hundreds of active cryptocurrencies, Bitcoin is by far the most popular and widely used.

Advantages :

• With bitcoins, there are no boundaries on transactions. The users can send the currency anywhere in the world at any given time without any hassle.
• Bitcoin transactions don’t need rescheduling in the event of bank holidays.
• Bitcoin payments can be finalized without a user having to give away his information. This gives Bitcoin users complete anonymity.
• Personal information of users is always hidden and no one can access it unless a user decides to publicize it.
• All Bitcoin transactions are recorded in a public ledger called Blockchain which enables everyone to see those transactions. This makes the transaction process more predictable and transparent.
• Mining of Bitcoins are predetermined, so inflation of Bitcoins is restricted.

Disadvantages :

• Transactions cannot be reversed for any reason.
• Bitcoins are finite, which makes them extremely volatile.
• Bitcoin is relatively new and most of its features are incomplete.
• Risk of theft from hackers

Is it the future of digital payments ?

With the advancement of internet and technologies like blockchain, Bitcoins may be the future direption of future payments. Despite the criticism faced by various governments, cryptocurrencies are the fastest, most secure way of managing digital payments. Hence its adoption has increased in the recent years.