Many times since the birth of Bitcoin, it had been slowly but surely been causing a disturbance in the way people think about cryptocurrency. There are some benefits of Bitcoin mining, which include rewarded of 50 bitcoins after solving the “Puzzle” or getting some percentage of bitcoins by helping out in a mining pool. But there are some disadvantages of bitcoin mining. Let’s explore more.
Unless you’re planning on exchanging your bitcoins into other currency, you’ll need to look for shops/online platform which accepts bitcoins for currency. All of the shops or other places which do accept bitcoins will be online.
There are only a few credible online stores, and sites like Reddit and WordPress that accept them for payment. Otherwise, you’ll have to switch it to traditional currency, which sort of defeats the purpose of bitcoins.
This is another big disadvantage for bitcoin miners. The value of bitcoin can fluctuate. But keep in mind that all currencies fluctuate in value, bitcoins appear to be a lot more unstable compared to other currencies like the US Dollar or Euro. In fact, bitcoins can deflate in value whenever people seem to put less trust in it or if a technical glitch occurs in the system or bitcoin exchange markets.
Bitcoin range can be anywhere from less than $10/bitcoin to its current high value to far beyond. The value should stabilize if more people use the currency, but that trend is going slow nowadays.
Bitcoin has no central authority which controls bitcoins, there’s also no application or form of protection when dealing with bitcoin transactions. If you want buyer protection, you won’t have any with bitcoins. If you want your bitcoins to be insured like money is in banks, that doesn’t happen with Bitcoin.
This system is made of codes. Any programmer will know that while code can be in good condition, but it is never perfect for a lifetime.
It’s a well known and common risk when dealing with digital gadgets, so you’ll need to take that into consideration if you want to keep the chances of randomly losing all your money down to a minimum.