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Investing in Bitcoin: Things You Need to Know

  • August 11, 2020

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Investing in Bitcoin: Things You Need to Know

Bitcoin is a type of cryptocurrency, also a digital asset that is used as a medium of exchange between individuals. Bitcoin was first invented in 2008 by an unknown person or a group of people using the name Satoshi Nakamoto and then came to be used after 2009.

It is a decentralized currency that does not rely on support on any central authorities. Over time, it has shown a demarking growth in its uses, whether online or offline. If you are interested in bitcoin trading watch the video

It is a virtual currency that travels from consumer to consumer on the bitcoin network without intermediaries' help. Business people mainly use it for their business purposes.

As we all know, everything has its merits and demerits. Likewise, bitcoins also have its value and faults. So below are some benefits and demerits points of bitcoin currency.

Merits of Bitcoins

Low transaction fees

Payment mode through bitcoin has very low or no transaction fees at all. It depends on the personal priority list as if they want to make their transaction mode fast, and then they have to pay or want to do it conventionally, then they don't have to pay at all.

Related: Why are Miners and Blocks Significant in Bitcoin?

Have higher liquidity ratio than other cryptocurrencies

Bitcoin is one of the cryptocurrencies that can be exchanged to fiat currency easily. Some cryptocurrencies can't be transferred to fiat currency easily, or those whichever gets exchanged also lose its actual price.

A decentralized country

Bitcoins are a decentralized currency that is free from any central authorities or a group of individuals. It is not regulated by any authorities to maintain their rules and regulation so you can use it without any restrictions.

Prevent fraud happening risk

Since it is an online transaction that takes place from one person to another, so, it does not reveal any personal data of its consumer. Thus this feature prevents it from any fraudulent happening that might take place.

Freedom of generating bitcoin by yourself

There is no specific system that only the government can issue bitcoin on their own; even a person can also print their bitcoin currency with the help of computers. There is a bitcoin mining process that you have to learn before generating it; for it, you can have a brief look at bitcoin mining.

Demerits of Bitcoins

Fickleness

Bitcoins price have a fickleness character where its price increases or decreases suddenly at a very high pace. Speculators feel free to speculate their investment on it.

But many investors do not feel free to invest their investment in bitcoins due to this character, so usually, they don't take risks here.

No refunds

The only drawback of bitcoin is that if due to some reason consumers want to cancel their payment or due to fraudulent activity, they want to get their currency back then like other credit cards or ATM they can't appeal for any refund again or chargeback.

Possible interference of central authority

Since we know, there is no control power of any central authority or government role in the bitcoin currency system. Still, there are some chances of interference from the government at a specific particular time. The government can interfere with the bitcoin system and force its wallets and companies to shut down and ban it entirely in their country.

Contribute to the black market

We all know that the bitcoin currency system does not reveal any personal information of people and keeps everything safe and secure. This character makes it helps individuals operating in the black market and money laundering.

Cause environment ill

Bitcoins mining consumes a massive amount of electricity for its payment mode. Its companies are based in China, where power is generated using dirty coals, which emits a lot of polluted smoke to air and thus pollute the environment.

Conclusion

As we all know, everything has its pros and cons. It depends upon one individual or society how they use it irrespectively. Bitcoin has already made its demarking history because of its highly efficient feature. It has more to go.

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