Five decades ago, the thought of all people having computers at home might appear to be unimaginable for some. But with the fast pace trend and with the recent technological developments that we have now, even our daily life has to adapt with the changing times.
In conducting transactions, before people had to personally send or receive money. But now, it can be done online through payment platforms. Among these is the use of bitcoin. Compare to other payment platforms, it is relatively a new concept making its way into financial infrastructure. And eversince it was launched in 2009, it has become widely popular.
Just like any platform making its way into the mainstream, it has its share of advantages and disadvantage along with the existing problems as well as the potential problems that might arise in using and trading bitcoin.
The bitcoin platform was created with the best intentions in mind. However, as more and more people use bitcoins and as the use and functions get more profound and complicated, we cannot rule out the possibility that the system itself is prone to misuse and abuse of certain people.
Although bitcoin has its technical achievement, it is hard to monitor mistakes and security issues like fraud and theft. With its open source platform, it may end up being used by wrong people.
From unreported and uncertified money transmitting businesses, illegal online marketplaces, Ponzi schemes and a whole lot more, there is a long list of possible abuses of bitcoin which in turn negatively affect the whole platform. As these people taint the reputation and credibility of bitcoin, many are playing safe when it comes to bitcoin and some would even push it away.
Abrupt Price Swings
For peer to peer transactions, there is without a doubt that bitcoin offers a cheaper alternative as there is lower transaction fee. The platform provides faster and definitely a more efficient payment system. But for traders, there are concerns especially when it comes to price movements. Bitcoin may experience abrupt price swings.
Bitcoin has a lot of benefits though there are also threats that have to be addressed. Yet, no one can deny that compare to other existing payment systems bitcoin is cheaper and more efficient.
Mobile Platform Support
With many online users now use their mobile devices for different use and functions; there is a need to have good mobile platform support for bitcoin. The good news is that iOS users can now access bitcoin centric apps that they can use. The same thing goes for Android. However, in general, it can be noticed that there is poor mobile platform support compare to other payment systems. Many huge technological companies do what they can to make it out of existence.
Bitcoin can be a good alternative to credit card. Instead of QR codes, this is definitely a better option to send and receive payments. But then considering that there is no private entity or group controlling the bitcoin system, major players in the industry result to restrict developments and innovations since they do not have control.