The pros and cons of using Bitcoin
The pros and cons of using Bitcoin
All people must be aware of the Mt. Gox trading exchange. It was one of the largest Bitcoin exchange in the world. It was based in Tokyo. Bitcoin is a form of virtual currency that provides way to anonymous peer-to-peer financial exchanges. From last time, the market participants are concerned about trading in virtual currencies. It all started with the major collapse of Mt. Gox trading exchange in February 2014. So, what do you think? Is it good to trade in Bitcoin or should the market participants avoid it? Let us check out the pros and cons of using Bitcoin:
Pros
• There is no need to disclose the identity while trading in Bitcoin. It is considered as an easiest trading more for merchants and consumers.
• It is the cheapest form of transaction in which there is no need to pay any cost while sending and receiving payments.
• The use of anonymous Bitcoin addresses changes with every transaction and therefore provides users with financial inclusions.
• With the use of Bitcoin merchants can stay away from the stress linked with consumer chargebacks and PCI compliance.
• The transaction platform or software can be set up at a simple tablet and doesn’t require any expensive POS system and hardware.
Cons
• After the collapse of Mt. Gox, people are getting to know the risks associated with virtual currencies. There are almost 70 risks associated with the use of virtual currencies.
• Bitcoin and the other virtual currencies act as a convenient way in cases of money laundering.
• The use of virtual currencies encourages financial crimes as anyone can plan a scheme as per its preference.
• The traders or the other participants who possess ample computational power can change the function of currency.
• Bitcoin currency exploitation is clearly visible in the decentralized mining process. It is the process used to manufacture Bitcoin.
Conclusion
Merchants and consumers both are interested in using the virtual currencies especially Bitcoins. They understand the benefits of using Bitcoin, and definitely the advantages exist over real currency. But the only problem is absence of regulatory regime. Due to the problem, The European Bank Authority has advised its banks to avoid the transactions in Bitcoin till the time a proper adequate regulatory regime is set up. Once the strict regulations are set, Bitcoin will emerge as one of the strongest virtual currency in the world.
Discussion
- RE: The pros and cons of using Bitcoin -Raj (07/10/14)
- There is still a long way to go before starting to use Bitcoins.
It requires:
* formulation of proper laws
* cyber security awareness among people
* regulatory authority both at national and international level
* reliable channel of transaction
- RE: The pros and cons of using Bitcoin -Deepa Kaushik (07/09/14)
- Bitcoin is undoubtedly one of the best ways for trading and transactios. Trading can be carried on with much ease and comfort without fiddling with the real currency. It has many advantageous over the actual currency with respect to stress factor for the secure dealing and avoiding the extra charges per transaction.
Bitcoin is favoured by many merchants and consumers, still it is an acceptable fact that Bitcoin is accompanied by good amount of risk factor. It is not only with the Bitcoin but any other form of virtual currency that lacks any particular regulatory regime. The stringent governing rules by a controlling authority is very important. This is important for the secure transaction with the virtual money.
Though virtal money has its own negative impacts, like the same is used for money laundering, various crimes involving the finances etc., still virtual money remain the favourite for those dealing in heavy transactions. Bitcoin will never lose its followers, instead will have an increased fan group, provided it is dragged under the supervision of any regulatory authority.
