The Pros and Cons of Using Bitcoins

Cryptocurrency is a virtual currency. There are no central banks involved, no governing authority, it is literally currency of the internet.

The purpose of cryptocurrency is to create digital cash.

Money, in essence, is anything that we are willing to allow a representative role in our exchange of goods and services.

A representative item is a token of sorts, that allows you to trade with a wider network of people.

Money has evolved over time from items such as shells, to imprinted gold or silver coins, to representative notes backed by government, the dollar.

Currently, if someone has cash, they open up their wallet and give the cash… what if you want to pay someone online?

That is where cryptocurrency comes in, you can pay for cash online and pay someone on the opposite side of the world.

Cryptocurrency cuts out the middleman of the bank and allows people to exchange value directly.

It’s a peer-to-peer network similar to BitTorrent, where data isn’t stored in a centralized place. it’s shared directly between individuals.

The record of these transactions is completely public within the community of the global Bitcoin network.

Crytpocurrency has no borders and because of this it is the first universal currency.

With BitCoin (BTC) and cryptocurrencies , just like cash, once it is spent, it is spent. There are no methods of arguing against a transaction or getting the currency back.

BitCoin does not leave any sort of paper trail, in contrast with credit cards, where you can dispute a charge, Bitcoin does not have any known means for tracking.

In terms of privacy, cryptocurrencies’ anonymity can be both a benefit and a disadvantage.

Bitcoin was the first cryptocurrency and payment system developed. A bitcoin is a single entry on a shared ledger known as a blockchain.

There’s a plethora of cryptocurrencies on the market like LiteCoin, Etherium, Ripple, the most prominent of cryptocurrencies is Bitcoin.

Mass adoption of cryptocurrencies across the world have led to the spawn of BitCoin exchanges, that allow users to exchange Bitcoin for regular currencies, like the U.S. dollar or the Euro.

Getting involved with BitCoin is made easy… to start investing in BitCoin, create an account with a digical currency exchange like Coinbase.

You deposit the amount of money you want to transfer into Bitcoin and that money will transfer from your bank account into your Coinbase account, also known as a “wallet.”

A Bitcoin wallet, refers to the software program where your bitcoins are stored. Some of these wallets have extra security features to make sure your Bitcoin stays intact and keeps potential theft threats away.

While BitCoin is changing the way currency is handled, it has a volatile market. Not backed by central banks, BitCoin can be a risky venture.

BitCoin is a relatively new to the financial world, because of this there are still a lot of unknowns that can play a huge impact in the future of currency.

Whether good or bad, BitCoin is a promising venture for any investor.

Author:

MagForex has been actively trading Forex since 2008 and up until today, he is still very active in Forex and added Bitcoin and other Cryptocurrency pairs in his trading portfolio.