Anything will always have its advantages and disadvantages. Same goes for Bitcoin. Although it offers a lot of advantage regarding privacy, anonymity, value, transaction, and usage, there are also disadvantages that can affect users negatively. Here are some of the disadvantages of Bitcoin:
- Encourages criminal activities:
Although the feature of not being able to trace transaction is great if used positively, it can be a huge disadvantage if it is in the wrong hands. A lot of criminal organizations for example drug gangs use Bitcoins for transaction since it leaves no trace hence leaving governments clueless. Corrupt politicians and leaders of countries also use it for storing money since no one can demand the source for it. At this rate, it can be a bad get away solution for criminals to carry on their activities. In the long run, it might be a risk to continue investing because if it gets out of hand, governments are sure to step in.
- Not accepted everywhere:
The access of products and commodities through Bitcoin is limited only to those companies who accept Bitcoin as a source of payment. That means that you cannot use it as a source of payment everywhere. On the other hand credit cards and international debit cards can be used almost everywhere.
- Losing Bitcoins:
Although Bitcoin in itself is safe and secure, there are many other ways people, hackers, in particular, have found through which you can lose everything. One way is if you see an attractive offer for Bitcoin online. Unless these offers come from the official page, you should never trust it. They are just fake links which if you click would lead hackers to take advantage of. Hackers can also get your keys. Another way you can use Bitcoins as if the computer you use for Bitcoins crashes because of malware or corrupted hard drive. In such cases, there is no way of retrieving anything back. This entails that you lose everything.
- Future is unpredictable:
Right now investing in Bitcoins might be a positive and good thing to do since the value of one Bitcoin is high. A lot of people who invested a few years back, in fact, have earned a lot over the past few years. However, the future is extremely blank and unpredictable. As we mentioned above, if criminals and other people use it for purposes that harm other people and the nations, governments are likely to step in and limit usage making the value go down or wiped out completely.
- User protection:
With government and private companies offering modes of payment, there will always be buyer protection service. The service is good in with major companies. If sellers try to dupe you, these companies act as a mediator to get your money back or replace the product. With Bitcoin, this is not possible because there is no owner or proper regulator of transactions. This means that there will be no system to protect your purchase