Nowadays Bitcoin is an important thing. People earn bitcoins as an investment. People earn these bitcoins to buy or sell, even they exchange it. It is very easy to exchange as it can be done by using mobile apps. Bitcoin is not only helpful, there are many disadvantages of bitcoin. This bitcoin was created in 2009 by an unknown person. One of the biggest advantages of using bitcoin is that the price of bitcoin will never decrease. Bitcoin is a very useful thing which people can buy and keep it as an investment. But they have to store it in their cloud wallet or on their computer.
There are two types of bitcoin one is bitfinix and another is bitstamp. People earn this bitcoin by solving critical maths puzzle. Using these bitcoins you can book hotels, buy furniture. Price of bitcoin in India is as same as gold. No one is aware that what will happen to the bitcoin. The government of some countries like China, Japan, Australia has started weighing the regulations. Government is more worried about the tax of bitcoin and if it becomes as important as money then they will lack the control over their country. Bitcoin in India is much riskier as compared to help. Hackers can hack your wallet from the cloud, but if you earn a lot of bitcoin then it’s a kind of investment also.
There are many disadvantages of bitcoin. And those are really harmful or it may mislead you. Like every other currency, there are many disadvantages of bitcoin. They are:
Bitcoins are not widely accepted:-
Everyone doesn’t accept the bitcoin, only a few online merchants accept these bitcoins. So relaying completely on bitcoins is not safe. Anytime government can force the merchants not to use the bitcoins as every transaction are tracked. The most important disadvantages are if your hard disk crashes or by any means viruses attack your system your wallet will be lost. Till date, nothing has been introduced to recover it. Anyone can hack your cloud wallet and steal all your bitcoins and then you will be permanently orphaned. These are few disadvantages of bitcoin.
Wallets can be lost:-
You won’t be able to keep the bitcoins with you, you have to keep it in your cloud wallet or store it in your system. Now if by any means your hard drive crashes or a virus attacks your system then everything will be lost. Till date, nothing has been produced to get your bitcoins back if once it is lost. Now this will make them orphan forever. Even anyone can hack your account and steal all the bitcoins that you have earned for so long.
Valuation of bitcoin fluctuates:-
There is no guarantee that the value of bitcoins will always increase it may drastically decrease also. The value of the bitcoin continuously fluctuates. Like in 2011 on 2nd June the value of bitcoin was $9.9 in a very popular bitcoin exchange site. Then just within 6 months, the value was decreased to less than $1 also. So there is no guarantee of the value of bitcoin. This constant fluctuation in the value of bitcoin makes the exchange sites to change the value. This even leads to a confusion. Like if you have taken something with bitcoin and while getting the return it depends that whether you will get with the value that you have given or with the present value. And suppose when you have given the bitcoins the value had been more but when it’s your time to get back then the value might fall and it will be a loss to you.
No buyer protection:-
when you are buying something using bitcoins and when you get back the product you find that the products are not same as promised by the seller then nothing could be done to get back the transaction and you will be in a loss. So there is basically no security for the buyers and there is no guarantee that the product the seller has promised to give you will get the same product only. They can betray you rather in half of the cases this happens so using bitcoin is not that safe or as people think its an investment.
Risk of unknown technical flaws:-
The system where bitcoins are present contains a number of flaws. Since this using bitcoins is a new system and since it is not widely accepted it is obvious that a number of flaws will be there. And using bitcoins is really risky.
No physical form:-
There is no physical form of this bitcoin so you won’t be able to store it in any physical store and since bitcoins are not widely accepted so the valuation will always be converted to other currencies. Until and unless bitcoins are accepted by everyone it is not at all safe to use these bitcoins.
No valuation guarantee:-
since bitcoins are not widely accepted and still now the government has not taken any step about bitcoins it is very risky to earn and keep the bitcoins. If suddenly the merchants decide to dump the bitcoin system then the value of bitcoin will decrease and it will hurt the users only.
Hence it is proved that there are more disadvantages of bitcoin as compared to advantages. There is no fixed value for the bitcoins. Anytime it can change. So it’s better to be careful and not to rely on bitcoins. The nature of the bitcoin has both blessings and the curse.