Forbes had recently had
published an article which had pointed the alarming reasons for not to indulge
in buying Bitcoins. The world is simply divided into two groups, one which is a
great fan and booster of the Bitcoins while others are expecting this bubble to
bust at any moment. Let’s have a look upon some of the serious issues with the
buying and using Bitcoins.
Losses Could Be Incurred While Dealing With Bitcoins
The traditional and
conventional financial system has a strong consumer protection laws. In short
if someone tries to make a fraudulent transaction with your card or your bank
files for bankruptcy, still then there are measures and laws which could help
in limiting your losses or providing you with a refund.
Bitcoin doesn’t offer
any kind of safety to its customers. If your Bitcoin gets stolen or lost, there
is no provision to get a refund. To safely hold the bitcoins you would be
required set a reliable backup system on your computer along with a good
encryption scheme.
Regulation of Bitcoins Exchanges
The federal agency is
United States had strengthened its measures to combat the money laundering
prospering wit use of the digital crypto currencies. Federal agaencies are
implementing a right way of regulating the Bitcoins by just regulating the its
exchanges and leaving its economy on its own.
But Bitcoins is against
such government regulation and wishes to work as a decentralised entity.
Because of this approach Bitcoins had earned a loyal following among those who
engage in illegal activities like gambling and drug dealing. As this technology
gains more popularity, the more number of people would be attracted to its
services in order to indulge in illegal activities and be safe from clutches of
the law enforcers.
Scaling It Up Could Be Time Consuming
Bitcoin have a unique
protocol wherein it is required that every node in the network downloads a copy
of every Bitcoin transaction ever made on its network. With gain in popularity
the Bitcoin client had become more and more resource intensive. It takes quite
a long to get fully operational if you use after a couple of weeks as it has to
download all those transaction son your device.
Lack Of Applications
Bitcoin is found to be
great alternative when dealing in illegal actives services or products. But in
the real world the applications of the Bitcoin is extremely limited as it
provides complete anonymity to its users. There are very few merchants or
companies accept the Bitcoin for the payment transaction. Still the valuation
of the Bitcoin is at exorbitant which is unjustifiable given the limited usage
opportunities provided by Bitcoins.
With limited usage,
government agencies on the heel, scaling and regulation related issues, you
would certainly think twice before you buy
bitcoins. Poor customer safety norms coupled with no window for refund is
grave risky business in itself. Invest in buying bitcoins only if you can
afford to lose that much of money.
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