by bitcoinmining

What is bitcoin?

In recent world currency trends, the notion of cryptocurrency/ digital currency has picked up the pace and among the big names in bitcoin. Bitcoin is a digital currency whereby a record of transactions is kept on the online platform in for of new currency that is independent of invasion of control by any central bank or government.

So essentially your money is stored in a digital wallet and stored for use at any time of your preference.

A unit of bitcoin? Yes, please….

Units of Bitcoin the basic unit of trade on the platform is often expressed as BTC (“bitcoins”). Due to the rising value of 1 bitcoin currently, 1 BTC = $450 due to the market demand, and the simple reason that the market is new and unregulated, and merchants are mostly set to benefit from this.

So why prefer bitcoin to USD transactions? Here’s why….

Currently, the Value of 1 Btc is 16, 742.77 USD. That’s a huge amount of money considering that is the current conversion rate; simply meaning that if you cash in one bitcoin your return is set at 16, 742.77 USD. Impressive right!

But like most of us, I would also be skeptical to embark on such a venture as my money is now on a “digital” platform. So after quite a lengthy research here are a few reasons why these transactions are quite popular and preferred in these modern days.

  1. Advantages
  2. Digital money platform

Bitcoin’s blockchain and BTC are so synthesized that one cannot function without the other. This creates a system that can operate without any middlemen, government officials, economists, and other intermediaries or regulators. In essence, bitcoin is the first platform of its kind where the verification process for a valid transfer is minimal and hence making it a reality for people to store and exchange value no matter where they are or who they are.

  • Faster and cheaper transactions

With this new form of currency, it has presented the world with a fast cheap, and reliable platform where you can transact anywhere from the global village and rely on the security offered by the platform for a smooth transaction.

  • Transparency and accountability

Bitcoin has very valuable tools for use in businesses or corporations such as multi-signature authorization and accounting transparency. This is where several people need to sign off on a payment, making it hard to embezzle funds hence heightens the security and accountability of transactions. And the fact that blockchain transactions are public improves a business’s transparency and gains the public’s approval.

  • Breakdown market monopoly

Bitcoin has disrupted the monopoly of banks, governments, insurance lenders, and other credit institutions by creating a platform that can run independently of control by any government or central bank.

  • Disadvantages
  • Market volatility

Bitcoin does have any regulatory framework as the trends in the market depend on the strengths of financial institutions and as such, the market is easily volatile and hence not stable. This is often the case as the speed and cost of transactions is often controlled by the provider.

  • No regulation

There is little to no regulatory authority when it comes to bitcoin so when things go haywire it is difficult to know which direction to point a finger to raise any litigations claims or otherwise.

  • Immutable transactions

This is simply to say that when the money leaves your wallet there is no way to get it back. This is because the buyers’ protection is not yet developed by bitcoin.

  • Slow transactions speeds

As the platform is still in its developmental stages, bitcoin transactions tend to depend on the efficiency and the network congestion of the platform

In conclusion

These are the most common advantages and disadvantages of Bitcoin. As you can see, the revolutionary technology behind Bitcoin doesn’t come without trade-offs. Despite that, Bitcoin is an evolving system that doesn’t standstill. Its open-source developer community is actively seeking improved solutions.

Given that the platform is in its early developmental stages, it is of the essence to observe the growth and subsequent stabilization and influence of the platform in-world currency.

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