Bitcoin – Peer-to-Peer Decentralized System

Source: bernardmarr.com

Bitcoin operates with the help of a technology which is known as blockchain technology. It is a digital currency that can be used by people to purchase different products and services anonymously. It is free from any sort of transaction or international transaction fees mainly because it is completely decentralized and no form of laws or regulations are applicable to it. The reason people prefer to invest in cryptocurrency is because of low investment costs and a high rate of return after a certain time period has passed.

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Ways to Get Bitcoin

There are three ways through which people can get bitcoin for themselves. They are as follows:

  1. People can purchase new bitcoins with the help of the mining process.
  2. They can exchange bitcoin for different products and services.
  3. They can participate actively in bitcoin exchange or trading where people buy or sell bitcoin in exchange for different currencies.

Bitcoin is the most versatile and useful form of cryptocurrency as it can help people pay off their debts in the form of bitcoin exchange but at the same time, one cannot deny the fact that it can be used for illegal or criminal activities like it can be used to purchase different forms of drugs, etc.

Source: Medium.com

Advantages of Owning Bitcoin

There are a few advantages of owning Bitcoin and they are as follows:

  1. It has a worldwide acceptability factor which means that crypto trading or exchange can be carried out anywhere people want. There are numerous merchants, businesses, companies, and different organizations that are integrating bitcoin into their system. Thus they are accepting payments in the form of digital currency. People now no longer have to face the hassle of sending money from one country to another. The transaction can be carried out easily in a matter of a few seconds.
  2. Furthermore, it ensures that cross-border transactions can be carried out in a smooth yet efficient and hassle-free manner. It is one of the easiest ways to transfer money from one country to another. The transaction fee for both local and international transfers to transactions is the same thus people can easily use this mode of payment.
  3. It is very safe to use as the entire process of owning and transferring bitcoin from one person to another is a very secure process with BitcoinRevolution.org. No one can access someone else’s account as every account is protected with the help of a private key. The private key is shared with the owner of the account only. It is very unlikely for anyone to hack the account. However, one still needs to be very careful when it comes to sharing sensitive information with strangers or with people who are not trustworthy. In order to make the transactions and to successfully send money from one account to another, the person who is transferring the amount needs to share the public key in order to access the amount transferred.
  4. It is an independent form of currency as no one has control over it. It is not bound by any form of rules and regulations. There is no central authority governing the currency or taking important decisions regarding the transaction or service fees. It is completely decentralized which means that the owners have complete authority and control over their account and the financial assets they own.
Source: PlanetCompliance.com

Disadvantages of Owning Bitcoin

There are two sides to everything and not everything can be perfect. Hence, the same is the case with bitcoin. There are a few disadvantages of owning bitcoin and they are as follows:

  1. It can be used for fraudulent activity like the purchase of drugs thus it can damage the overall reputation and usefulness of the currency in the world at large.
  2. Once a transfer is made from one account to another, it cannot be canceled. There is no chargeback or refund policy so everyone should ensure twice before the transaction is carried out.
  3. It can be replaced by some other cryptocurrency in the coming years mainly because it has a limited market cap of $21 million, which means that once all coins are mined then new coins cannot be created. People can then only trade or exchange the existing coins. It is likely to increase the market value of the digital currency but it might not last long for a long period of time.
  4. The price of bitcoin is highly volatile, which means it is changing quite frequently due to which people might get confused regarding how they should make use of their investment.
Source: CoinDesk.com

Final Words

Bitcoin is one of the best digital currencies. it has never lost its fame and popularity because it is the first digital currency that was introduced in the market. it has all the qualities that makes it a safe haven asset like it has limited supply means after reaching its given number no one can produce or make it which makes it very valuable like gold that is why it is also known as digital gold. Now people and investors are adopting it very fastly and since the last two years it reached its top all-time high price. It is also volatile meaning its price sometimes goes up and sometimes goes down like other feat currencies so you can use it in trading. Many people and traders earn good profit by investing and trading this and other digital currencies like it.

It is also free to transfer because it uses peer to peer technology which includes only sender and receiver which makes the transaction faster than the traditional feat currencies. in the past if you want to send money to any other country you have to choose a medium like bank or broker to send money to buy goods or pay bills which take a lot of time and these middle man also charge too much to send money along with charging their own exchange rate which made the products expensive due to cost of the products but by paying with bitcoin these expensive has reduced and you can buy goods on their actual prices.

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