The adoption of digital currencies has its merits and demerits to be mindful of before integrating their use. Bitcoin, for instance, comes with the advantage of not needing a third party such as a bank or credit card to hold an account. To initiate transactions, all that one requires is the internet and a computer. Transactions are conducted securely on the bitcoin network, a public online database that requires complex algorithms to ensure their safety.
A significant advantage of bitcoins is its lack of need for governmental regulatory oversight. The decentralized network of bitcoin is maintained by various websites. Since no government controls the network, the risks of terrorist activities funding and corrupt governments stealing from citizens are minimized.
However, the use of bitcoins has its disadvantages. In some areas like the US, privacy concerns have arisen from conventional transactions; thus, some fear their personal information may be intercepted in the blockchain. This is unfounded since bitcoins do not require in-person transactions, rendering any unauthorized access to personal data illegal. Nevertheless, businesses and consumers alike are wary of the long conversion process, fees of transferring money, and the difficulty holding and transferring bitcoin to conventional currency.
Despite the concerns, the bitcoin protocol allows for transactions globally, making it ideal for businesses willing to engage in international trades. Digital currencies such as bitcoins may not be widely accepted currently, but the decreasing volatility in the market since its establishment presents the potential for future adoption.
Overall, it is essential to weigh the pros and cons of digital currencies such as bitcoin before adoption by businesses and consumers.