We all know that there are many benefits to using Bitcoin, and in fact, Bitcoin was launched to solve the problem of payment. As we all know, if there is an advantage, there will be a disadvantage, and this is true in every way.
So we will see the disadvantages of Bitcoin theindependent.co.zw:-
1. Not widely used: –
Bitcoin is known as a globally accepted currency that can be used by anyone but is not widely accepted. Yes, that’s right, it’s a globally accepted currency but not widely accepted. In some countries, bitcoin is restricted because it is decentralized, meaning there is no third party control over bitcoin like the government, and if there is no government control it means the government cannot deduct taxes and if the government no taxes can withdraw it, so it cannot accept Bitcoin in its country.
The second reason is that most of the people are unaware of the uses of Bitcoin. They don’t know how to use bitcoin, they think it is very complex. Bitcoin is therefore not widely accepted, even though it is a global currency.
2. Chances of fraud
When something is popular, some bad people come to crash that popular thing. Since Bitcoin is a cryptocurrency or a digital currency, there will be hackers who are always looking for a vulnerability so that they can crack this exchange and steal all the bitcoins.
There are many cases of fraud that are the most common and this is the biggest limitation of Bitcoin as more security is wanted, if there is no security or protection then users will not try this Bitcoin platform.
Malware attacks: – Today’s age is the digital age, and the Internet is spread all over the world. Almost 99.9% of people use the internet around the world. When we visit websites, there are some links that virus inject into your computer and the virus can destroy the data or steal your computer’s data.
Social Media Fraud: – Almost all people use social media for entertainment, business, and educational purposes. There are some scammers out there trying to target people who are unaware of Bitcoin. They said we are bitcoin agents and you can double your money by investing in it and we will take little commission from your profit.
So there are a lot of scammers and hackers out there, so this is the limitation of the Bitcoin platform.
3. Not suitable for every aspect: –
It is true that Bitcoin is very popular, but it cannot be used in every field or place. Since we know that it is very beneficial for merchants for international transactions, but if customers are unwilling to pay with Bitcoin or do not want to use Bitcoin as a payment method, what can you do? Nothing right?
When people go to the market to shop, what is the most preferred and convenient payment method, bitcoin? No, the most preferred method is cash, debit or credit card, or any other online payment method such as Google Pay, Phone Pay, Paytm. There are many payment methods that are more secure and directly linked to a bank account.
Bitcoin is decentralized and lacks security, so it is not convenient for payment in all respects.
4. High fees for peer-to-peer
Peer-to-peer transactions are a very secure transaction with Bitcoin as you can buy or sell Bitcoins in your local country using the local Bitcoin exchanges and Bitcoin ATMs.
You can easily buy Bitcoin through Bitcoin ATMs, which is like making a deposit at an ATM. However, the limitation of Bitcoin is that it charges high fees for peer-to-peer transactions. Fees can vary between 5% and 10% depending on the location.
First of all, you need an account with a local Bitcoin exchange. After creating an account, you can find sellers and buyers in your area. This is the caveat that these websites charge a commission of 10% to 20% on every transaction.
5. Too many exchanges
Bitcoin was launched to remove the middleman in order to reduce transaction costs, but there are many bitcoin exchanges that are growing rapidly and with the increase in the number of bitcoin exchanges, people are confused which one is high for them Security and protection is better at a minimal cost.
Since bitcoin exchanges provide the ability to convert bitcoin currency to local currency for bitcoin users, they charge a large amount of money for converting currencies.
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