The new Bitcoin digital currency has been growing in popularity with individuals and with merchants that will accept Bitcoins as payments, and in this article we are going to examine some of the most important benefits and pitfalls associated with using Bitcoins as money. You should not listen to anybody who tells you only positive things about Bitcoins or only negative things, because there are several positive revolutionary aspects of the new Bitcoin digital currency and there are several major negative pitfalls that cannot be ignored.
The Benefits Of Using Bitcoins
One of the most important and most frequently cited benefits of using Bitcoins as money is that the entire Bitcoin system is completely decentralized, which is the exact opposite of most of the major first world currencies like the pound, dollar, and euro. This means that it is run and maintained by a global peer-to-peer computer network that will compute the advanced mathematical algorithms necessary for processing transactions and purchases. Because there is a finite number of Bitcoins in existence and there can never be over 21 million Bitcoins created, that means the digital currency is immune from inflationary pressures exerted by a central bank that is continually increasing the money supply.
The Pitfalls Of Using Bitcoins
It is essential to look at the negative aspects of using Bitcoins as well as the positive ones so that you can have a well rounded perspective of this new digital currency. One negative side effect of having your Bitcoins stored in a digital wallet is that it can be possible for your digital wallet to be hacked if your computer is infected with spyware. Another negative aspect of using Bitcoins to make purchases is that transfers of Bitcoins can never be reversed once they are confirmed in the block chain algorithm, unlike having a chargeback with a credit card purchase.
Final Conclusion On Using Bitcoins
Using the Bitcoin as real money is currently in its early adopter phase, which is the same growth curve that all new technology moves through as it gets introduced to society. If you are going to consider denominating a portion of your money in Bitcoins then it is important to be technologically literate and computer savvy so that you can protect your digital wallet and make sure that your Bitcoins never get deleted or stolen. By weighing the positive and negative aspects of using Bitcoins as money you will be able to make an informed decision about whether investing in the Bitcoin digital currency is the right option for you.
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