Benefits
1) Decentralization
The main driver and motivation behind Bitcoin is a decentralized currency. This means there is not any one individual or entity that controls the cryptocurrency. Currently, transacting at your local store requires several entities and people that monitor and drive your transaction.
By having a decentralized currency, you are allowing said currency to flow naturally while eliminating the cost of middlemen.
2) Security
Another benefit is a higher level of security. Specifically, your transaction is more secure with Bitcoin thanks to blockchain technology. At a high level, the blockchain enables your transactions to be encrypted and private. Once the transaction is made, it is then approved by other computers and posted on the ledger.
This allows the blockchain to essentially be unhackable. However, you can still have your account hacked, similarly to having your checking account hacked.
Drawbacks
1) Limited Use
Right now, there are limited uses for Bitcoin in the wild. If you went to your local store, odds are they will not accept Bitcoin or even know what it is. While the end goal of Bitcoin is for it to be used in everyday transactions, this is still far off.
2) Volatility
Another drawback that keeps people away is the volatility in value. A simple glance at the news will show how Bitcoin can rise or fall 5% to 10% in any given day. This makes it difficult for people to adopt Bitcoin into their portfolio.
While some may argue that Bitcoin is a store of value, it is difficult to back that argument with such a fluctuating price. Also, your purchasing power is impacted greatly. For example, if you put $100 in and it falls 10%, you are now left with only $90 in purchasing power.
Bitcoin continues to build upon the idea of having a decentralized currency that offers greater security than our current system. Depending on your situation, Bitcoin may or may not be a proper fit. Right now, it is best to look at Bitcoin as a risky speculative play, rather than a store of value. The technology behind Bitcoin continues to change the way we transact, but large fluctuations in value are keeping people away.
If you venture into purchasing Bitcoin, be sure to find a reputable exchange and research a secure cold wallet store system.
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