Bitcoin is a computer program that allows you to own and transact in digital currency. It is a decentralized digital currency that is not controlled by any governing body. Even the governments of countries have no control over transactions of bitcoins. The governments can’t also ban bitcoin; they can try to regulate it.
You can get bitcoins by purchasing it as per the value bitcoins in your currency. You can also earn bitcoins by allowing people to make payments through bitcoins for the services provided by you. People also create bitcoins by a process called mining.
Mining is a two-way process. It helps bitcoin to make sure that no one can use any bitcoin more than one. Some people create a copy of cryptocurrency this, using it twice. But it can’t happen with bitcoin. The miners usually solve complicated math algorithms by using supercomputers. These algorithms ensure that each bitcoin is transacted once by a user. Thus, miners provide security to bitcoins. In return for this security, the miners are rewarded with new bitcoins that they can use for any purpose. Therefore, new bitcoins come into circulation. For bitcoin trading you should know about the benefits of crypto trading: read here about the cryptocurrency vs stock trading
As a user, all you need to know is that transacting in bitcoins is quite easy. It provides you complete autonomy of your transactions without any bank charges like account maintaining fees, etc. International sales are quite comfortable, with small transaction fees.
PROS OF BITCOIN
1. Payment Autonomy:
You can send and receive currency anywhere, from any part of the world through any device with an internet connection. You have control over how and where you want to spend your money. Unlike bank transfer, national holidays do not create a hindrance to transact.
2. Low transactional fees
The transactional fees you pay is decided by you based on how fast you want to get confirmation of your transactions. You have to bear the same transaction fees for 1,000,000 bitcoins and one bitcoin if you wish to quickly verify the deal. This is a great advantage offered to users who are involved in international transactions paying a high amount of transaction fees.
3. Autonomous identity
Your identity will remain hidden, no matter what. The transactions in bitcoin are recorded in the form of Wallet ID rather than personal information. You don’t have to worry about traced back from any purchase unless someone has access to your wallet number.
4. Transparent and Neutral
Bitcoin is a 100% trustworthy platform. It is transparent with its users and provides a secure platform for people to send and receive currency. It is secured by cryptography. It is transparent with its users, ensuring no one can use a currency multiple times by creating copies of it.
5. Easy Transactions
Many people ask how difficult it is to pay with bitcoin. This is a simple answer for those people. It is effortless to transact in bitcoin. Even more comfortable than the standard transaction with debit and credit card. All you need to enter is the recipient’s address and payment amount.
CONS OF BITCOIN
1. Still a developing program
Bitcoin is still not fully developed. New features, tools, and services are updated now and then to make it more compatible and make users’ experience better.
2. Irreversible Transactions
The transactions in bitcoin can not be reversed. Once made, no alterations can be made to payment details. In case, you put the wrong recipient address and pay to a wring person; no one can help you. You have lost your bitcoins. So, you have to be very careful with the recipient’s address and the amount you are paying.
3. Risk of loss and theft
In case you misplace your private keys to bitcoins, you lose all your bitcoins at once, and there is no chance of them being recovered again. Make sure to use a safe and secure wallet to keep your bitcoins away from theft if anyone gains access to the information regarding where you have stored your bitcoins, chances of them being lost increases.
There are several limitations of using bitcoins, but it is still developing and making changes to make its users better at every stage. So, don’t take your step back; you need to be more cautious.