Crypto currency (Bitcoin) is good or bad
A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Bitcoin is a cryptocurrency. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.
Advantages of Bitcoin
Another benefit of crypto currency is there is no transaction fees involved for the bitcoin transaction. The transaction fees charged by the banks and agents can be skipped by using the Crypto currency.
Crypto currency is accpted internationally. It can be used internationally without and conversion charges. It is easy to maintain.
Crypto currency exist digitally so all the transactions happen on the internet. A person just need internet connection to access or transfer his money.
Anonymity and Privacy Relative to traditional currencies: The biggest benefit of crypto currency is to keep the identity of payer hidden. It is greate feature but it can be used for illegal transactions as well.
Independence From Political Agents and Creators: There is no central authority in the Bitcoin world. No political power can control it or manipulate it. This is another powerful free currency which can self regulate and no one has control over it.
One of the benefits of cryptocurrency is that they are one-to-one affairs, taking place on a peer-to-peer networking structure that makes cutting out the middle man a standard practice.
Criticism of Crypto currencies.
Crypto currency is decentralized.
Crypto currency does not have a central authority.
There is no central server; the bitcoin network is peer-to-peer.
There is no central storage; the bitcoin ledger is distributed.
The ledger is public; anybody can store it on their computer.
There is no single administrator; the ledger is maintained by a network of equally privileged miners.Anybody can become a miner.
Bitcoin, along with other cryptocurrencies, has been described as an economic bubble by at least eight Nobel Memorial Prize in Economic Sciences laureates, including Robert Shiller,Joseph Stiglitz,and Richard Thaler.Noted Keynesian economist Paul Krugman has described bitcoin as "a bubble wrapped in techno-mysticism inside a cocoon of libertarian ideology",
Bitcoin has been criticized for the amount of electricity consumed by mining. As of 2015, The Economist estimated that even if all miners used modern facilities, the combined electricity consumption would be 166.7 megawatts (1.46 terawatt-hours per year).At the end of 2017, the global bitcoin mining activity was estimated to consume between one and four gigawatts of electricity.
Concerns about bitcoin's environmental impact relate bitcoin's energy consumption to carbon emissions.The difficulty of translating the energy consumption into carbon emissions lies in the decentralized nature of bitcoin impeding the localization of miners to examine the electricity mix used.
Journalists, economists, investors, and the central bank of Estonia have voiced concerns that bitcoin is a Ponzi scheme.
Bitcoin is vulnerable to theft through phishing, scamming, and hacking. As of December 2017, around 980,000 bitcoins have been stolen from cryptocurrency exchanges.
The use of bitcoin by criminals has attracted the attention of financial regulators, legislative bodies, law enforcement, and the media. Bitcoin gained early notoriety for its use on the Silk Road. The U.S. Senate held a hearing on virtual currencies in November 2013. The U.S. government claimed that bitcoin was used to facilitate payments related to Russian interference in the 2016 United States elections.
Biggest issue in the cryptocurrency market is the volatility of price. The prices of cryptocurrencies rise and fall within a short period of time. When a tradable asset can drop by as much as 49 percent in less than 24 hours, then the volatility of the market is super high.
Contributed by: Studyfreak