The Pros and Cons of Using Cryptocurrency
Cryptocurrency such as the Bitcoin has been used in several transactions. In fact, you can utilize it to buy what you usually purchase using cash. You can pay for a flight and a hotel through travel agencies such as the Expedia, Surf Air, and Cheap Air. You can buy apps from the Google Store using cryptocurrency. You can purchase Gyft or eGifter, and the recipient can use the card for shopping. You might be interested in investing in the digital currency, and we present its pros and cons to help you make the right choice.
Pros of Cryptocurrency
No bank needed
When you use cyptocurrency, you can do all transactions online. You do not have to go to an ATM machine to get your money. This feature of a digital currency is favorable to billions of people around the world who do not have bank accounts because they cannot provide the required documents or because they cannot afford the amount needed upfront as initial deposit.
Speedy fund transfer
Receiving funds through banks could take a day or more before you can withdraw cash. With digital currency, you can get and use your money in 10 minutes at most. This is faster than other modes of transferring money that passes through a bank. If you need to pay for something or transfer funds to another person, you can do it in 10 minutes at most.
Using a digital currency is safe. In fact, once the transaction using Bitcoin has been confirmed, it cannot be reversed. This means that no one can get back the amount that has been sent to you.
in cash transactions, one can pay using a check and cancel it after the delivery of merchandise or issue a check to you that is not backed up by enough funds so that the check bounces back. Most importantly, no one can steal a Bitcoin.
When you withdraw a big amount of money from the bank or from an ATM machine, there is the risk of being robbed. Criminals are everywhere, and some of them prefer to stay close to banks and to automated machines. They wait for people who they can easily victimize. They can snatch the money or threaten the person so that they can get it. Cybercriminals can hack your bank account and transfer funds without you knowing it immediately. Most victims of online theft discover the crime only when they check their accounts.
The use of cryptocurrency has attracted young people to consider investing in it instead of in the stock market. They are excited over the huge returns of putting their money on Bitcoins.
No Identity Theft
With a cryptocurrency, there is no possibility that someone can steal your identity and use it for illegal activities. You can create a different ID so that no one would have any information about you; unlike using a credit card, in which you must share your personal information with the merchants when you make your purchases.
One great advantage in using cryptocurrency is the negligible fees compared to those that banks charge. When you send funds through your bank, you need to pay charges. The same is true when you use money transfer establishments. With Bitcoin, you can transfer huge funds without paying much.
Digital currencies know no boundaries when it comes to international trading. You can use it even if you are on the different continents. The transaction between countries is easy because the process is not regulated by the central bank. There will be no levies or taxes to be paid..
Cons of Cryptocurrency
Few real world use
The use of digital currency in the real world is limited. People need to buy their basic needs daily. They still need cash in order to buy food, fuel, pay utility bills, pay the rent and tuition fees of their kids. Anyone who has Bitcoin may not be able to spend it for his daily needs.
Difficult to regulate
The problem with using digital currency is how the government can collect tax. All transactions are just between the buyer and the seller, or between the recipient and the sender. Earnings from sales or income in the form of cryptocurrency leave no public records. Even transactions amounting to millions cannot be taxed by the government.
The value of a digital currency such as the Bitcoin can go up or down drastically. Misinformation, for example, can make Bitcoin holders to sell what they have, and this can result in a plunge of its value. When the market was shut down because the crytocurrency was used by drug traders, its value went down quickly.
Difficult to Liquidate
People who have a total holdings of several million dollars in Bitcoin do not have a clear idea as to how they can convert thir asset into cash. Doing so could seriously affect the market, perhaps with the value of the Bitcoin going down quickly.
If you happen to send an amount in Bitcoins to the wrong person, there is no way for you to get a refund. You can ask the person to resturn the funds, but if that person refuses, you will lose your money.
There are only a few companies that accept Bitcoins as payment. Although many people find are excited about owning a Bitcoin, it will still take years for it to be accepted to use for commerce, online fund transfers, micropayment, and electronic payment.
If you store your cryptocurrency in your wallet, either in your phone or computer, do not lose these devices as well as your password. Once you cannot open them anymore, you will lose all your coins. You will not be able to retrieve them even with legal help.
Currently, only a few people use digital currency, but there are signs that more countries recognize its significance. You can weigh the pros and cons so that you can make the right choice.