Introduction
When we rely on banks for money transfers, online payments, money withdrawal or just savings, we are giving them trust; we have to trust that the bank will not go bankrupt and that our money would always be available for us; furthermore, we have to provide all our personal details, trusting that those will not be disclosed without our agreement. If we wanted to avoid using banks as intermediaries, we would have to keep all our savings in cash, which means it would be impossible to transfer money for a low price and in a short time. The purpose of Bitcoin is to create money exchanges that do not involve a third party and it is a software, a protocol and a currency at the same time; it is presented as a digital currency, a form of …show more content…
Overview of the advantages and disadvantages of Bitcoins
Advantages compared to traditional currencies:
• Freedom of payment: Any amount of money can be sent or received instantly, anywhere and anytime.
• Very low costs: Bitcoin payments are effectuated without cost or with extremely low charges; users can also agree to pay a low-cost fee to increase transaction’s speed.
• Less risk for merchants: Bitcoin transactions are secure, irreversible and do not require the customers to provide sensitive data; thus, traders can easily expand to new markets where credit cards are not available or fraud is very likely to happen.
• Security and control: Bitcoin users totally control their transactions; there is no way to intervene in a hidden manner on transactions.
• Transparent and neutral: No private and no organization can control or manipulate the Bitcoin protocol because its security is guaranteed by cryptography. (Coinreport, n.d.)
Disadvantages compared to traditional
When we rely on banks for money transfers, online payments, money withdrawal or just savings, we are giving them trust; we have to trust that the bank will not go bankrupt and that our money would always be available for us; furthermore, we have to provide all our personal details, trusting that those will not be disclosed without our agreement. If we wanted to avoid using banks as intermediaries, we would have to keep all our savings in cash, which means it would be impossible to transfer money for a low price and in a short time. The purpose of Bitcoin is to create money exchanges that do not involve a third party and it is a software, a protocol and a currency at the same time; it is presented as a digital currency, a form of …show more content…
Overview of the advantages and disadvantages of Bitcoins
Advantages compared to traditional currencies:
• Freedom of payment: Any amount of money can be sent or received instantly, anywhere and anytime.
• Very low costs: Bitcoin payments are effectuated without cost or with extremely low charges; users can also agree to pay a low-cost fee to increase transaction’s speed.
• Less risk for merchants: Bitcoin transactions are secure, irreversible and do not require the customers to provide sensitive data; thus, traders can easily expand to new markets where credit cards are not available or fraud is very likely to happen.
• Security and control: Bitcoin users totally control their transactions; there is no way to intervene in a hidden manner on transactions.
• Transparent and neutral: No private and no organization can control or manipulate the Bitcoin protocol because its security is guaranteed by cryptography. (Coinreport, n.d.)
Disadvantages compared to traditional