Bitcoin is a virtual currency which can easily be controlled by the network of the users which is decentralized.  There are many cryptocurrencies that have the traditional state minted currencies. But the bitcoin value is relative to currencies and the physical goods. The bitcoin unit can be divided into decimals which represents the smaller units of value. Today the smallest Bitcoin is Satoshi which is 0.00000001 bitcoin. Bitcoin is the most versatile out of all the cryptocurrencies whIch can help you purchase the right goods from the merchants like Expedia and overstock.com. bitcoin remains the niche currency which is a wide fluctuation.  If you are looking into the aspects of pros and cons before investing this article might clear somethings up.

Pros

Greater liquidity relative to other cryptocurrency

Bitcoin has far more greater liquidity which makes it popular. This allows users to inherit the value when you convert it into flat currency. Most other cryptocurrency cannot be changed and can loose their original value in the exchanges. Bitcoin is a fiat currency which make sit easier to buy and sell bitcoin from any quantity at anytime.

Pros

Increasing acceptance as a payment method

There are hundreds of bitcoin payments who are trying to make sure that you are able to buy a physical item using the bitcoin units. As the bitcoin is gaining popularity you can see that it is taking mainstream which is making it much more ways to grow.

International transaction is easier

Bitcoin transaction can cross international borders without any hassle. The value of the currency will stay the same. Most of the cryptocurrencies will lack international red tape which is easier and simple as bitcoin is one of the most popular currency around the world.

Lower transaction fees

Compared to all the other digital payment methods bitcoin has the lowest transaction fees which is less than 1% of its value.

 

Cons

Exposure to bitcoin specific scams and frauds

Bitcoin has seen a fair share of medium specific scams and frauds. These range from the small time Ponzi scheme to other trust or massive hacks. Cryptocurrencies do not have critical mass of users which make sit easier for the criminals.

Black market activities may damage reputation and usefulness

Bitcoin is still the most attractive way of exchange between criminals. The dark web is a marketplace where you can see the fraud and threat of criminal prosecution. These activities are some of the reasons why you might get a damaged reputation. But one can effectively put an end to it by legitimizing it over time. Try to make sure that you tackle bitcoin effectively as the whole system faces marginalization today.

Categories: Pros And Cons