Bitcoin features, advantages and disadvantages that Bitcoin players should know

Golden Finance News - Bitcoin has attracted the attention of the world with its unique charm, and more and more people are participating in it. Many experts and scholars have conducted in-depth research on Bitcoin, hoping to explore the fascinating nature of this digital currency.

Characteristics of Bitcoin

——Bitcoin’s characteristic 1: decentralization

Bitcoin is the first distributed virtual currency. The entire network is composed of users, and there is no central bank. Decentralization is the guarantee of Bitcoin's security and freedom.

——Bitcoin’s characteristic 2: Circulation all over the world

Bitcoin can be managed on any computer connected to the Internet. Anyone can mine, buy, sell or receive Bitcoin regardless of where they are.

——Bitcoin’s characteristic three: exclusive ownership

A private key is required to manipulate Bitcoin, which can be stored in isolation on any storage medium. No one except the user can access it.

——Bitcoin’s feature 4: low transaction fees

Bitcoin can be sent out for free, but a transaction fee of approximately 0.0001 Bitcoin will eventually be charged for each transaction to ensure faster execution of the transaction.

Bitcoin’s characteristic 5: No hidden costs

As a means of payment from A to B, Bitcoin has no complicated limits on the amount and procedures. You can make a payment as long as you know the other party's Bitcoin address.

——Bitcoin feature six: cross-platform mining

Users can explore the computing power of different hardware on a variety of platforms.

Advantages of Bitcoin

——Advantages of Bitcoin 1:

Simple transaction lines: Transactions through the Bitcoin network are very simple and there is no need to trust middlemen.

——Advantage 2 of Bitcoin:

Completed transactions are irreversible: Executed transactions cannot be reversed or recovered.

——The third advantage of Bitcoin:

Security and stability: There is no instability caused by a central bank and a fractional reserve system. The money supply of the Bitcoin system is evenly distributed (determined by CPU capacity) throughout the network, thus limiting the inflation caused by banking monopoly.

Disadvantages of Bitcoin

——Bitcoin’s disadvantage 1:

The vulnerability of the trading platform. The Bitcoin network is robust, but the Bitcoin trading platform is vulnerable. The trading platform is usually a website, and the website can be hacked or shut down by the competent authorities.

——Bitcoin’s disadvantage 2:

Transaction confirmation takes a long time. When a Bitcoin wallet is first installed, it will take a lot of time to download historical transaction data blocks. When Bitcoin transactions are made, in order to confirm the accuracy of the data, it will take some time to interact with the p2p network. The transaction is considered complete only after confirmation from the entire network.

——Bitcoin’s disadvantage 3:

The price fluctuates greatly. Due to the involvement of a large number of speculators, the price of Bitcoin exchanged for cash fluctuates like a roller coaster. This makes Bitcoin more suitable for speculation rather than anonymous transactions.

——Bitcoin’s disadvantage 4:

The public does not understand the principle, and traditional financial practitioners resist. Active netizens understand the principle of p2p network and know that Bitcoin cannot be manipulated and controlled by humans. But the public does not understand, and many people cannot even tell the difference between Bitcoin and Q coins. "No issuer" is the advantage of Bitcoin, but in the eyes of traditional financial practitioners, "no issuer" currency is worthless.