Have you been debating about using this digital currency? Though it seems to be the new norm, it has garnered negative press since its introduction. The consumer protection bureau in the US continues to warn people regarding its potential drawbacks. Despite concerns, more people prefer using Bitcoin to conduct trade online as opposed to other methods.
Before you decide to use Bitcoin, you should understand both its merits and demerits. The form of digital currency is like a double edge sword. While some people question its safety, others argue that Bitcoin is the next big thing. This cryptocurrency may have a long way to go before it is given the same treatment as the US dollar, but it is a convenient way of accepting and making payments. The concept has been around since 2009 and is powered through peer to peer technology.
You need to evaluate what you stand to gain or lose as you use Bitcoin. Some of the individuals are known to mine bitcoins as they utilize complicated computers. Anyone can stash bitcoins in a digital wallet. You can then transfer the sum to a merchant who accepts this cryptocurrency.
Unlike other methods of payment, this eliminates the need for intermediaries such as governments and banks while conducting financial transactions. The lack of a middleman makes the transaction fees lower, making this method attract a lot of people. If you want to convert cash to bitcoins, you can do this on Bitcoin exchanges. This allows you to purchase the virtual currency.
Many people are switching to bitcoin since it is user-friendly and straightforward. No other currency is known to send money at such cheap rates via the internet and across borders. Bitcoin makes it easy for people to conduct international transactions. When you use bank wire services to send cash overseas, you can be charged $ 45. Bitcoin exchanges, on the other hand, offer the same transfers at a much more affordable cost.
Despite such advantages, Bitcoin can be quite unpredictable. Since no government controls Bitcoin, it has a decentralized nature. This makes it prone to fluctuations. The value of Bitcoin can be anything from a few dollars to a substantial amount. Its high volatility makes it easy to lose money. According to reports, the virtual currency can lose up to 80% of its value within a few days.
If you prefer making purchases with this currency, you need to exchange the cryptocurrency to a regular currency immediately to avoid incurring financial losses. Though the number of Bitcoin exchanges continues to increase, they have minimal oversight. This increases the risk of bitcoins being stolen or lost.
Due to the high exchange rate risk, you need to utilize Bitcoin accounting software for you to keep track of your transactions. Despite these risks, people anticipate changes in the future and hope that the technology behind this cryptocurrency shall be fortified to make it safer to use. Since you don’t want to lose your hard-earned money, you have to weigh both sides and decide if Bitcoin is the right option for you.