Bitcoin and blockchain is a revolution that is going to change the Financial system.
However, it does have several disadvantages. Depends on how you look at it.
As an Investment:
- Highly volatile
Fluctuates anywhere between 1–25% in a day - Unregulated
If you lose your Bitcoin, get hacked by an exchange, get cheated by a company, exchange or individual, there is no legal recourse - Legal/Illegal
In several countries, Bitcoin is Illegal or a grey area. There are no taxation guidelines and asset classification - Congested Networks
At times of high trading, Bitcoin networks get congested. If you hold your bitcoin off an exchange and want to sell it at a particular price, by the time the bitcoin reaches the exchange the price might have changed
As a currency:
- Price volatility
1 Bitcoin can be worth $6000 on one day and $4900 the next. Its unstable nature makes it unsuitable for use as a currency - High Network fees
Bitcoin network fees fluctuates between $5-$50 depending on the network congestion. This makes it unsuitable for small transaction - Network congestion
Bitcoin transactions can take anywhere between a few hours to 2 days - Not accepted as legal tender
Very few countries accept Bitcoin and other cryptocurrencies as legal tender right now.
Developers are working on network congestion and high fees issues. Governments are working on regulating cryptocurrencies. These disadvantages might disappear in the near future and new ones will replace them as Bitcoin grows in popularity and mass adoption.
