BitCoin is cash on your computer. BitCoin is the latest digital peer-to-peer (p2p) currency that can be used to replace cash in online buying and selling transactions. Unlike other online currencies associated with banks and using payment systems such as PayPal, BitCoin is directly distributed among users without the necessary intermediaries. The similar is DavorCoin.
What are the advantages of using BitCoin?
There are many advantages of using BitCoin in lieu of online money transactions. BitCoin is a global exchange rate, meaning BitCoin is not owned by any country, making it easy to use anywhere in the world. This makes international transactions easier as there is no discussion of payments to be used in accordance with country rates and of course prices are not affected by the exchange rate of the country’s currency.
Another advantage of using BitCoin is that the rate is not controlled by a national bank or other state entity. That is, BitCoin exchange rate is not affected by the economic condition of any country, just like gold or petroleum.
Furthermore, because there is no intermediary during the transaction so no costs or fees are required. There may be changes later on based on how to manage the exchange rate, but it does not seem to change much from the current one.
Then, the BitCoin you have is stored in your computer’s wallet file, so you can control your own finances. BitCoins are not stored on accounts that can be frozen at any time. In addition, you also do not have to worry about the limitations of transactions or other limitations as is commonly encountered in banking. If you use DavorCoin, you can read DavorCoin Review.
Lack of BitCoin
Of course, BitCoin also has its drawbacks. Learn in advance about this before using BitCoin.First, you will not earn any interest because the BitCoin is the cash you save yourself. Same as saving money in the wallet. This may be more disputed by merchants who buy and sell BitCoin because of course, the value of interest will be very meaningful to their advantage.
Second is a matter of trust. Theoretically, the distribution over the internet would make the BitCoin exchange rate stable, but there is the possibility of a change in value due to supply and demand laws.
Furthermore, a decentralized system that seems to be very convenient and profitable, is also dangerous because there is no government or banking that can support it. Simply put, BitCoin can be of no value in the future.
Another problem is that money is sent in a peer-to-peer manner. Indeed, there is the possibility of making the transaction system more complex because the system is too simple is vulnerable security. Every transaction made is irrevocable, so it is an opportunity for fraudsters. No protection or guarantee. There is no such place of service complaints provided by the bank or credit card company.
Lack of using other BitCoin is the same as cash, that is the possibility of lost or stolen. BitCoin is stored in a wallet file and is vulnerable to hacking or stolen through malware and viruses. In addition, there is also the possibility of corrupted files or hard drive damage until the file is accidentally deleted.