Bitcoin is the first dispersed digital peer-to-peer crypto currency the world has ever seen. It is regarded as a quantum leap in the currency industry. It has gotten so popular all over the world, that everyone has heard of Bitcoin at one point in time or another.on this article, i am going to outline the major Disadvantages
The origins of Bitcoin is shroud in mystery as no one knows the creator of this currency. Some professionals have however given very enlightened ideas about the identity of the pseudonymous inventor.
However, this article is not focused on the origin of bitcoin, but on its disadvantages. Since its invention and rise to worldwide fame, Bitcoin has gained a lot of fans and critics alike. People are fawning and gushing all over the many things they stand to gain from it- such as freedom of payment, safety of information and low fees- and the anonymity and privacy it offers. Anything that has advantages will surely have disadvantages, and Bitcoin has many disadvantages.
A major disadvantages of Bitcoin is that regardless of its popularity, many people are still oblivious to its existence. It’s true that more companies and businesses will collect bitcoins, but the number of companies that do so is still very small. This is a reason why you can’t depend on bitcoin as a currency.
Bitcoin is seemingly more of a commodity than a currency, as its value is very unstable. It falls and rises at a very high speed, and it does so based on demand. This makes it very unpredictable and a huge risk for investors.
Bitcoins are saved in wallet files, and as a result they can be easily “orphaned” when wallets are lost. To explain, wallet files get corrupted when the user’s hard drive breaks down, or a virus contaminates data. These Bitcoins will be lost, and be forever orphaned in the system because there is no way to get them back.
Bitcoin has no main governing authority, and as such, there is no way of ensuring its lowest valuation. If it so happens that a large number of traders “dump” Bitcoin and exit the system for good, the valuation will experience a huge decrease and it will adversely affect traders who have invested a large sum in Bitcoins.
Bitcoin has its advantages, no one is disputing that, but users should be aware of the downsides and the risks involved before taking the plunge.