Pros And Disadvantages Of Bitcoin

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Bitcoin is a new form of currency that was created by an unknown with the alias Satoshi Nakamoto (CNN Money, 2015). It is an online payment system whereby users are able to do transactions directly without involving any intermediaries. Bitcoin is expected to have its own advantages and disadvantages. Among the advantages are bitcoin transactions does not require a third-party involvement (Pagliery, 2014). This means that no intermediaries like banks are required to deal with bitcoin transactions. Bitcoin users need not to spend time on doing any form of transactions. For example, people have to wait for some time to do any form of transactions at the bank but by using bitcoins, they no longer are required to wait or to go through some procedures…show more content…
Secondly, bitcoin transactions are excluded from taxes (V.T., 2014). This will definitely be a huge advantage for bitcoin users as they do not have to spend any amount on taxes. Hence, transactions using bitcoins are expected to be more profitable compared to the transactions that is been carried by intermediaries such as banks. Next, bitcoin users cannot be tracked by other people (Pagliery, 2014). Tracking back users that had performed transactions can usually take place users perform transactions using an intermediary. However by using the bitcoin, no one has the ability to track a user as only the user will have the information of their bitcoin. Besides, it increases the privacy of a user because users do not have to share their personal data to intermediaries. Another advantage of bitcoin is that its transactions costs are kept very much low (Investopedia, 2015). Since bitcoin does not involve any form of intermediaries, the transaction costs are expected to be lower. This situation benefits many people especially the travellers. This is because credit cards usually will cost 3 to 5% of transactions cost upon transferring which is higher compared to

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