Question

Question:What are the costs and benefits of using Bitcoins for transactions?

can anyone help me and explain very detail?

Answer 1

Bitcoin, a form of cryptocurrency in the recent years have come as an alternative to the traditional mode of payment via fiat currency. There are certainly benefits as well as disadvantages associated with making transaction with bitcoin.

The benefits associated with the transaction through Bitcoin are:

• No third party interruption : Traditionally government can stop your bank transaction, freeze your bank account but putting a freeze on bitcoin is technically not possible. The transaction is simply being done within two parties.
• Very low transaction fee ; When making transaction through credit card or bank transfer they charge a commission somewhere between 2-5% but transaction cost through bitcoin are very less because there is no intermediary between the transaction.
• Annonymity of transaction : Untill the user is choosing to publish the details of transaction, the transaction remains annonymous.
• security of the coins: Bitcoin allows complete control to the user when making payment, no extra amount amout can be charged with prior intimation.

The cost associated with transaction through bitcoin are :

• Very few people are accepting bitcoin as a payment method, so if someone is not willing to accept a payment method the transaction can not be completed.
• Even businesses have skepticism about accepting bitcoin as a payment method.
• Education about bitcoin is still not spread very much so there is a negative conception about this product .
• Cyber threat is a major issue for people dealing with bitcoin.