Bitcoin is amazing innovation that is entering our lives more and more, but as anything else, it has not only advantages. Here I discuss some of the downsides about the cryptocurrency.
The following is a list of Bitcoin disadvantages:
- Bitcoins Are Not Widely Accepted
- Even though Bitcoin popularity is growing every day, most merchants still dont accept Bitcoin, which prevents people from using it in their daily routine.
- The absence of Physical Form makes Bitcoin harder to see and to value. You cannot withdraw it, purchase it in stores or keep it under your mattress.
- Wallets Can Be Lost
- When a computer crash occurs, if you haven't backed up your wallet, you will lose it. The difference with conventional wallets is that it can never be found again. The coins in your wallet are also lost forever.
- Bitcoin Valuation Fluctuates
- In 2011 Bitcoin price went down by 900% between June and December. In 2017 the price jumped from 570 USD to 4000 USD. While it can be good for an easy buck, it is very hard to maintain prices this way. For example,if a store puts its prices in Bitcoin, it should probably update it again in one hour. In order to know the real value of your Bitcoins, you need to check the value constantly.
- No Buyer Protection
- When buying with Bitcoin chargebacks cannot be done. Money that has already been processed can be returned only voluntarily by the receiver. This means to return your money, the receiver needs to make a transfer back to you with the same amount. This would be a second, separate transaction.
It takes some time until you get used to it, but dealing with Bitcoins should be no biggie, as long as you keep your wallet safe and backed up. if you would like to read the Bitcoin Advantages Click Here.