With the other advancements and modifications to the world of technology, the concept of currency and banking is also being changed over the past several years. In 2009, Satoshi Nakamoto introduced a digital currency known as bitcoin. Bitcoin is not a physical currency in coins or papers, but it is a digital currency stored in digital wallets. Every bitcoin has its barcode and can only be accessed by its owner, who has to enter the security key. All transactions of bitcoins are shared publicly in the form of blockchain. Anyone can have access to view these transactions through those blockchains. To make trading and investment in bitcoin easy to do, onebitcoin a day will provide you some guidelines.
Benefits of Bitcoin
- Decentralized Currency:
The most important benefit of bitcoin is that any government or central bank does not control it. Instead, one can use it globally. You can purchase, sell or exchange it globally without any need for verification. one can make heavy online transactions through it without paying any taxes. Although your transaction is shared on the blockchain, they never reveal your name or identity, and hence, it is the safest way to buy or sell your items.
- Best Mean of Investment:
Purchasing bitcoin is the best way of investing your money nowadays. As its value rises more speedily than any other means of investment. The value of bitcoin has almost doubled last year and came out as the most profitable and beneficial cryptocurrency. As compared to gold or property, whose values rise very slowly. Gold or property needs time to be sold, but one can quickly sell out bitcoins due to international acceptance. One can’t transfer gold or property across borders, but bitcoins can. So if you are looking for where to invest your money as a good source, bitcoins are the best option.
- Fewer Numbers of Risks:
People who deal with bitcoin don’t have to worry about risks as blockchain guarantees to keep your information private. You can quickly transfer the massive amount to one another while keeping it confidential. While dealing with bitcoin, one should have to worry less about taxes and other payments as bitcoin requires a meager amount of taxes or sometimes no taxes while purchasing or selling. There is no threat of theft because bitcoin is only kept online, and only the owner has access to buy, sell or exchange it.
Drawbacks of Bitcoin
- Not Accepted at Some Places:
In some countries and some businesses, bitcoin is still illegal and not accepted while making purchases. Only a few companies admit it. Businesses like Tesla accept bitcoin. But at some other places, it is illegal one can not make any purchase using bitcoin. It may also be possible that the government which doesn’t accept Bitcoin places a ban on it, and the owner should have to stop its buying and purchasing activities using bitcoin. Also, if one purchases anything using bitcoin but the seller does fraud with it, it can’t do anything to get its money back.
- High Volatility:
As the prices of bitcoin rise speedily, it faces a sudden and large amount of decline also. A person may enjoy when the price of bitcoin rises to double, but the same person may face loss at the same ratio. There is no guarantee for it. A severe backlash may turn a wealthy bitcoin owner into a broke person. Any negative statement about bitcoin by an influential person lessens its value in half. When the owner of Tesla, Elon Musk, said that his company is accepting bitcoins, it doubled the value of bitcoin, but when the same person said he wouldn’t admit bitcoin anymore, the worth was decreased to half.
- One may lose wallets:
Digital wallets containing bitcoin are usually placed in the owner’s cloud, or the system’s hard disk is not safe every time. While the cloud can be hacked by anyone easily, the owner may lose all its wealth in the form of bitcoin. While in the hard drive, if any virus is inserted, or the system gets crashed, all the bitcoin may be lost, and there is no method to gain your money back till now. So, this is the most crucial drawback of having bitcoin.