Post by Admin on Dec 26, 2020 18:31:53 GMT
There are pros and cons of using bitcoins that all users should be made aware of
as they move forward. Let’s look at the main ones here...
Pros:
Anonymity Protections – You can buy using your private key,
which is essentially a password, up to 78 digits long (and you can have
more than one). This is how you make a bitcoin transaction,
and you cannot make one without your key.
Wallets – Your bitcoins are stored in a wallet that is accessible
via the cloud, an internal hard drive, or even an external storage device.
You cannot save your wallet on paper, only electronically.
Finite Supply – Fiat money (the money sponsored by governments)
is not backed by anything and most money is valued based on the US Dollar.
Since there are only 21 million units of bitcoin and there will never be more,
it’s just like the old gold standard which is seen by some as superior to fiat money.
It’s Unpolitical – There is no central bank, and no state agency
controls bitcoin or its value. A government cannot freeze your bitcoin,
and bitcoin isn’t even regulated by its creators. It just exists and can be used
by the users the way they want to use it.
Cons:
Security Issues – There are some issues with hacking where people
have lost their bitcoins. Additionally, there have been issues of fraud
where someone misrepresented themselves and was sending you
to a fraudulent website to pay money for non-existent bitcoins.
Private Keys – You cannot recover your private key. If you lose it
and can’t remember it, you’re out of luck because they are unrecoverable.
The best place to store your key is by printing it out on paper
and keeping it locked up in a file cabinet or even a safety deposit box.
Hacking – Wallets are great but if you don’t sign in often and you don’t watch
your accounts, you’re making yourself vulnerable to hacking.
Anytime you store anything on a computer it’s vulnerable to hacking,
so it’s essential to use only super-secure servers.
Black Market Activity – Bitcoin is often used for nefarious reasons
on the dark web. This means that it can have a bad reputation due to some
of its users. This is a shame because it can erode bitcoin’s reputation and value.
Whether you call it cryptocurrency, virtual currency, or digital currency,
bitcoin is a type of new currency that you should learn all you can about
before you buy it, mine it, or use it to pay for products and services.
By: (Zlatan K. From Serbia)