Disdvantages of Paying With Bitcoin Cryptocurrency | SCOT UG

Although bitcoin is a more secure way to pay, it can fluctuate quite a lot in value in that, it can rise or fall to half of its value in just a month
As we’ve seen with other cryptocurrencies, this Bitcoin comes with its own set of advantages and disadvantages. In this article, I am going to talk about some of the cons to using bitcoin as your preferred form of payment. 

cons of paying with bitcoin

Bitcoin is a type of cryptocurrency that was invented in 2009.  It has become popular over the last few years and now really is starting to take off as it becomes more mainstream for use around the world. 

1. Bitcoin's value Price is volatile and can fluctuate

Although bitcoin is a more secure way to pay, it can fluctuate quite a lot in value in that, it can rise or fall to half of its value in just a month. This volatility can cause serious problems and If you are trading bitcoin for money or goods and services then it may work out better to have the fiat currency instead as the value will remain more constant over time.  For this reason, bitcoin is not yet considered to be a stable form of payment.

2. Bitcoin Transactions are irreversible

Once bitcoin is sent from your wallet it cannot be reversed. This makes bitcoin transactions difficult to recover if something goes wrong with the transaction, for instance - if you send money to the wrong person there is no way to get it back.

3. Long Transactions Period

If you send or receive bitcoin, it usually takes around 10minutes to 60minutes for the transaction to be confirmed and complete. this period can go up to hours due to network congestion. 

This is because as more people use bitcoin, blocks of transactions are created with each block containing multiple transactions which then need to be verified by miners on the blockchain network. Therefore, Bitcoin users might not have access to their funds for hours while waiting for transaction confirmation.

4. There is a high risk of fraud when using bitcoins

Bitcoin transactions are irreversible. This means bitcoin owners cannot reverse or recover their money if they sent it to a scammer by accident, or if their bitcoin storage site shut down. If you want to avoid this risk, keep your bitcoin in a wallet where you own and control the “private key”  not on an exchange or hosted wallet service. 

You can avoid bitcoin scams by using bitcoin escrow services. This way, the transaction is completely safe as an independent agent/website will hold your funds until both parties are satisfied with trading and allow you to release funds accordingly once the trade has taken place successfully. 

5. Bitcoin is not yet a stable form of payment

Although bitcoin is more anonymous and secure than fiat currency at the moment, Trading is not allowed in many countries worldwide, this makes its transfer to fiat money along steps process, For this reason, bitcoin is not yet considered to be a stable form of payment until some legal issues are addressed such that bitcoin becomes legally approved.

Finally,  Bitcoin is an exciting new currency that can revolutionise the way we do business. It’s also a risky investment and has a high chance of fraud because it isn't regulated by any government or entity, so there's no one to protect you if something goes wrong.

The value/price of bitcoin fluctuates daily and third-party providers charge higher fees for people who use their services to convert bitcoins into cash.

What else would you like us to cover about bitcoin? Let us know in the comment box below!

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