The Impact of Bitcoin on Our Lives: The Pros and Cons

Bitcoin and the new world

The tech community has created an array of initiatives that will make Bitcoin a possible reality. One of those initiatives is creating a blockchain which will become an alternative for the traditional banking system, while providing the user’s privacy. The crypto-currency community has been growing over the past years and people have invested in Bitcoin or started to use the blockchain in their business. The blockchain allows for a decentralized network where anybody can check their transactions. We can also find very good projects on the internet. One of them 1 Bitcoin Website. Where you can buy pixel advertising space for bitcoin and the proceeds will be used to plant trees.

The pros of Bitcoin

Pros of Bitcoin are numerous. In my opinion the best benefit is the ability to move money instantly and completely anonymously with the push of a button. The other aspect of Bitcoin is the possibility of eliminating international transfer fees as the process of moving money is more streamlined. It is easy to see how Bitcoin could be attractive for those individuals that live in remote locations that are not near to any financial center or international exchange.

No inflation

The price of Bitcoin is based on supply and demand, rather than the machinations of a government or central bank. By the end of 2017, Bitcoin is predicted to cost approximately 1,000x more than it did in 2010. It’s a little over a year and a half until Bitcoin peaks and then begins a decline that lasts approximately 6 years.

Fast transactions

Bitcoin is the currency of the internet. It’s fast, safe and simple to use. No fees, no 3–4% or more fees for being a bank, online payment processor or remittance service. It’s still experimental so it has to prove itself Despite Bitcoin’s numerous disadvantages, the Bitcoin currency is still under trial. There are still some risks involved with using it. It is a volatile currency that may lead to some risk of losing your money. It might collapse if some countries do not continue their support. It is also open to speculation, so there is always the risk of losing some money, especially if you invest in Bitcoin from outside the US and UK. Bitcoin might go out of production, which will mean a shortage in the currency.

No third party involvement

Easily spend money worldwide Can send money to anyone in the world P2P style of transferring money Shared global network Very low costs Low transaction fees Instant transactions Ability to buy gold, and many other uses Saving our Currency In terms of inflation, which in any economy we think about as a deflationary force, when a currency loses value, what is to prevent it from becoming worthless? Conventional currency is now losing value, and in fact, many fear that fiat currency will not be able to keep up with the rate of inflation. Given that Bitcoin is a digital asset, there is no paper money backing it, or even a piece of metal as an example of a physical asset that people want in the hope that it will retain value.

The cons of Bitcoin

The cons of Bitcoin may seem rather trivial, but sometimes a pain in the butt. The main concern Bitcoin has is that it can be subject to speculative bubbles. I hope to demonstrate why this is a concern here. But I need to be clear that I am no more or less concerned about a possible Bitcoin bubble than anybody else, and I certainly do not think that a Bitcoin bubble will cause a disaster. However I do think it is worth considering the possibility of a Bitcoin bubble occurring. The theory behind a Bitcoin bubble is that Bitcoin has grown at a rapid rate and, if you are speculating in Bitcoins in order to make profit from its rising value, the price of Bitcoins is increasing as quickly as the prices of other things. One analogy is an increase in the price of a stock.

Volatility

There are many disadvantages to Bitcoin compared to fiat money. But I won’t go into these. The one thing I will say about Bitcoin is that we should recognize its volatility. Bitcoin is a volatile currency. This means that Bitcoin values can change quickly and dramatically. This is due to the fact that Bitcoins themselves are completely unregulated. In fact, they are completely pseudonymous. The wallet owner can make transactions without anyone knowing who they are. They can, however, be held accountable if something goes wrong in the transaction. Other Costs There are some other costs that Bitcoin incurs that I believe are still very important to consider. One of these costs is that the Bitcoin transaction fees are very high.

Security concerns

Although Bitcoin has given some people some concerns with the possibility of crime as the network is primarily built with the interests of people using it at heart, Bitcoin is a safer alternative to the Western Union or wire transfers. The average consumer doesn’t have to trust a company with sensitive information such as account numbers. What It Will Take to Reach the Next Level Currently, Bitcoin isn’t being used as a means of exchange. Currently, Bitcoin is being used as a store of value and as a means of payment. People use Bitcoin as a means of saving money, but it would take a massive user-base to start using it as a currency.

Considerations for Bitcoin adoption

The Bitcoin currency system has been heavily scrutinized by the financial sector. However, that doesn’t mean the idea has no merits, quite the opposite. Here are a few reasons why people are interested in taking the step into the digital currency realm: Lower transaction fees Bitcoin offers an alternative method for low cost cross-border money transfers. By not requiring a bank’s involvement, this can be a plus for the purchaser and seller. Larger number of cryptocurrencies There are currently about 10 000 cryptocurrencies in circulation. The major ones are Bitcoin, Bitcoin Cash, Ripple, Ethereum, Litecoin and others. Bitcoin is by far the most popular and the most well known in general.

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