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Review on Bitcoin by Kathrin Cole
Bitcoin currency is widely used in e-commerce, is the first and most typical…
Bitcoin currency is widely used in e-commerce, is the first and most typical coding currency. The cost of payment, transaction bitcoin is much cheaper than other types of money so it is preferred by companies and businesses. As of June 2016, Bitcoin's base amount was valued at about $ 12 billion, making it the largest currency ever.
Pros
- Bitcoins Cannot be Stolen Bitcoins’ ownership address can only be changed by the owner. No one can steal Bitcoins unless they have physical access to a user’s computer, and they send the bitcoins to their account. Unlike convential currency systems, where only a few authentication details are required to gain access to finances, this system requires physical access, which makes it much harder to steal.
Cons
- Built in Deflation Since the total number of bitcoins is capped at 21 million, it will cause deflation. Each bitcoin will be worth more and more as the total number of Bitcoins maxes out. This system is designed to reward early adopters. Since each bitcoin will be valued higher with each passing day, the question of when to spend becomes important. This might cause spending surges which will cause the Bitcoin economy to fluctuate very rapidly, and unpredictably.
