It’s been quite a while since Bitcoin has become the most talked topic across almost all countries in the world. Recently some countries like Venezuela has made Bitcoin as their official currency. While the rate of growth of investment in Bitcoin is increasing day by day, some part of it has always remained mysterious. Amidst all cyber battles and attacks, that are destroying banking and personal securities, the question remains unanswered, Is Bitcoin safe? And if it is, what are the advantages? And if it’s not, what are the cons?
If you are totally unaware about BitCoins, here are some basic facts. It was invented in 2009, by a techie who calls himself, Satoshi Nakamoto. But, we have several reasons to believe that his identity is fake. BitCoin is operated with the backend technology called BlockChain. It is a form of digital and virtual currency, with zero physical presence. If you own a smartphone or a computer and have fair technical skills, you can start mining bitcoins on internet.
First and most important characteristic of cryptocurrency is it is absolutely independent of any government rules and regularities. It has its own way of working and focuses on individual rather than groups or communities. Anyone who registers as an identified user will be included in worldwide vast network of BitCoins. Some of the others are, transparency and fast speed. It is totally transparent and can be used by anyone from any place.
Now let’s go through the Pros and Cons of this particular cryptocurrency.
Secrecy and Security:
User’s identity is kept in secret for the transactions. Users are in absolute control of their own transactions. Vendors can not ask for additional charges without users’ permission. Transactions and personal information need not be connected to each other. In this way, the details are protected for each individual. Back up of Transactions and personal information can be taken easily and they can be encrypted for users’ safety.
The next advantage, which is attracting global users is BitCoins are portable in a great manner. One can easily carry them along with their mobile phones or personal computers. This function allows users to transfer money (or in this case BitCoins) within a flash of seconds, to a person sitting anywhere in the world. This happens because it uses the same currency regardless of what is authorised currency of that particular country. There are no fees and convenience charges associated with these payments.
No Physical Infrastructure:
BitCoin eliminates the need of physical infrastructure for banking structure. Payment Cards, ATMs and businesses associated with it. It is widely known as PCI, which stores data, details, passwords of users. Use of BitCoin will reduce the costs for innovations and support for this infrastructure. It will reduce the cost associated with safety protocols. The possibilities of cyber thefts and frauds will be deleted automatically.
Apart from these, there are few additional benefits like freedom of transactions, choosing your own portal or comission for payments and lesser commission fees.
Even if there are multiple advantages of this cryptocurrency. Let’s have a quick look at them:
Authenticity and Legality:
Still there are big questions about, legal authenticity of BitCoins. None of the major countries has approved it as legal currency. There are major news, which talk about connection between cryptocurrency and terrorism. It is safer for terrorists, as it is non trackable by any governing authority in the world.
Even though BitCoin was most talked topic in recent year, the craze seems to be limited amongst netizens. Common population is mostly unaware about this technique, as they may find it difficult to use.
Volatility and Protection:
Similar to PINs or Passwords, BitCoin has Keys. Protection of the same is necessary for each individual users. Though, there is facility of backups and encryption, security is always a concern. And if we talk about volatility, it has similar picture to the share market. The ups and downs in the value of BitCoins can prove damage to your financial investments.
And last one is, the technology used for BitCoins or any cryptocurrency is still upgrading. There t is not yet any fixed model for BitCoins.
That was all about BitCoins. At the end, we can say it’s not perfect yet. There are Pros as well as cons associated with this technology. It still in its younger stage. If it is meant to be succeeded, more and more people should be educated and informed about it. Once they start using BitCoins, people will get educated about the same.
At last, it is everyone’s decision to learn about crypto currencies and then decide whether to use them or not.