Bitcoin is the most prominent cryptocurrency out there right now. Many popular companies, such as Target, CVS, Amazon, and Subway, now accept it.
Though Bitcoin offers many advantages, there are heavy disadvantages as well. Keep these in mind if you’re thinking about using Bitcoin. Many Places Don’t Accept Bitcoin The list of companies that accept Bitcoin has grown and is still growing. However, while physical currencies are accepted everywhere, Bitcoin is not. As time goes on, more and more stores will likely begin to accept Bitcoin. After all, Bitcoin’s user base has been growing rapidly, and sellers want to cater to those people. Online businesses especially are working on integrating Bitcoin, while some brick and mortar retailers are beginning to look at it as well. Since Bitcoin is still relatively new, even the places that allow you to pay with the cryptocurrency may have trouble assisting you when needed. What if you have a question about how to use Bitcoin to pay for their products? Companies will need to teach their employers about Bitcoin, but that would require significant time and effort. There is the very real possibility that the customer service team will have no idea how to assist you, and you’ll be left to figure it all out yourself. Bitcoin’s Volatility Bitcoin is currently an extremely volatile currency. There’s a limit to how many coins there are, and the demand for them oscillates all the time. This rewards people who started using Bitcoin early, and it makes the Bitcoin economy move unpredictably.
Back in December 2017, Bitcoin was worth about $19000. Now, in February 2018, its value is falling and approaching $8000. It’s true that you may be able to profit from these fluctuations, but you also stand to lose a hefty amount of money. If more and more people and businesses begin to use Bitcoin in the future and it becomes more mainstream, then the price will be given the opportunity to stabilize itself. Until then, using Bitcoin can be a little risky. No Protection on Transactions Bitcoin offers its users freedom, anonymity, and flexibility, but it bears the disadvantages of no regulation. After you buy something with Bitcoin, there is nothing at all you can do if the seller doesn’t follow through and send you what you purchased. If something goes wrong and you want a refund, the seller is the only one that can refund you. You can’t do anything else to reverse the transaction. You can avoid this by using a third party escrow service, but that injures the freedom that people love Bitcoin for. Easily Stolen or Lost Bitcoin is a complicated currency to use. It’s difficult to store and use bitcoin well, so you need to be educated to utilize it. If something like a virus wipes your entire hard drive or your Bitcoin wallet file is corrupted, you’d lose all of your Bitcoins and have no way of ever retrieving them. An affluent Bitcoin user could suddenly lose all of his or her wealth in mere seconds, and not be able to do anything about it (or even see it coming). If you transmute your Bitcoins to paper, the QR codes on the papers would make it possible for others to steal your Bitcoins without even leaving a trace. It would all be anonymous, meaning you would have no way of catching a thief.
When Bloomberg TV business news anchor Adam Johnson revealed a $20 Bitcoin certificate on camera, a viewer used his smartphone to scan the QR code and steal the money. It happened in about 10 seconds, and in these kind of thefts, no one would ever know who did it unless the thief revealed himself. No one knows exactly where Bitcoin will be in the future. It’s still a very new technology and anything could happen. Most regular people don’t understand it very well and simply decide to stay far away from it for the time being. This is a great idea if you’re not willing to put in the research to understand how Bitcoin works, because you’ll most likely end up losing money if you go in without some knowledge. If an unexpected strange event happened and affected Bitcoin, you would have no idea what to do. If you’re truly interested in using Bitcoin, or even if you simply are curious and want to know how it works, then I encourage you to do your research. With the wildly fluctuating price, you can even treat it as a stock and attempt to profit from that. There are a lot of things you can do. Keep in mind the disadvantages mentioned here, and see if you can figure out how it works!