The former are the ones who believe in the potential of Bitcoin to revolutionize the financial and tech sectors, as what we can see with Fintech LTD. On the other hand, the other group consists of those that see it as a fad. Nonetheless, there’s no denying that the crypto has its fair share of pros and cons.
1. No inflation
One of the best things about Bitcoin is that unlike fiat currencies, it’s value is less likely to inflate. This happens because purchasing power is not lost as more digital coins are printed. It’s because, in the first place, they aren’t printed or made.
They’re just mined digitally. Take for example the price of a pair of shoes in the 1900s that is just sold for a few cents. Compare that to today, and you need to spend around $100 to $200 to get a decent pair of shoes.
Bitcoin is different because it is finite. There is a total of 21 million Bitcoins that will be mined and put into circulation. 16.7 million BTC has already been mined as of now, leaving a remaining 4.3 million waiting to be mined. Mining would then halt once the cap has been reached.
The Blockchain is the technology behind Bitcoin. And thanks to it, the people no longer need to pay for expensive fees. Its digital ledger technology takes care of it. This is like peer-to-peer systems that torrent sites run on today.
But what’s great about this is that it doesn’t need to be governed by a central authority because of its decentralized nature. This means that there’s no need to pay extra fees for middlemen, as with banks that manage fiat currencies.
What’s great about Bitcoins is that they’re digital assets. They might be intangible but can still hold a huge value. You can literally carry a million dollars of Bitcoin in your pocket by simply bringing a flash drive with you. There’s no way you can do that with paper money.
As with other technologies, Bitcoin also has its drawbacks, and one of which is its anonymity. Cryptos are named for a reason, and that’s because of their untraceable nature. In fact, this is one of the reasons why criminals use Bitcoin to enact their illegal activities. It’s hard to know the people involved in the Bitcoin transactions because the data are written in codes that can’t easily be deciphered.
2. Buying Power
Cryptocurrencies are a fairly new technology that’s why they’re still not widely accepted. Adoption might still be a bit slow. However, cryptanalysts believe its situation will improve in the long run. But for now, you still can’t use Bitcoins in a lot of places, except for a few online shops and physical retailers. This is one of the reasons why Bitcoin is used by many as an investment instead of a substitute to paper money.
The price of Bitcoin can change fast. It fluctuates from time to time, which is why many still doubt its credibility. You can be a crypto millionaire today and have zero Bitcoins tomorrow. You’ll never know what’ll happen in the next month or even in the next hours.
Bitcoins have a huge potential to make the financial and tech world safer, more efficient, and more accessible. However, it’s still new to the market, and it still must undergo a series of improvements to make it a part of mainstream society. No doubt it will if regulations are put in place by the government and financial institutions.