According to CoinDesk data, the market value of Bitcoin-the total value of all Bitcoins in circulation-exceeded $1 trillion in May 2021, although the daily fluctuations of this cryptocurrency make calculating its market value almost tricky.

On the other hand, Bitcoin has several obvious shortcomings, which should cause investors and ordinary consumers to stop. These Bitcoin-specific shortcomings—and of course positive—are worthy of careful study, just like the more important advantages and disadvantages of cryptocurrencies.Learn the basics of Bitcoin to earn more profits, here are useful tips on how to predict Future Bitcoin price.

Some benefits of owning and using Bitcoin

Compared with other cryptocurrencies and traditional fiat currencies in general, Bitcoin has several specific benefits. The most frequently mentioned advantages are decentralization, inherent anonymity, and independence from government and company control.

  1. Greater liquidity

When converting to fiat currencies (such as U.S. dollars or euros), users can retain most of the intrinsic value of cryptocurrencies. After creating an account, you will immediately receive a bonus of $5, and if you understand other cryptocurrency options, you may receive an additional $25 in bonus.

  1. More popular payment methods

Thanks to the existence of industry giants such as Overstock.com and Tesla, it is now possible to buy almost any tangible item with Bitcoin units. As Bitcoin is becoming more and more popular among the public, it may be an important asset in your efforts to reduce your exposure to fiat currencies.

  1. Easily start international business

Bitcoin transactions across international borders are no different from Bitcoin transactions within a single country or region. In some cases, international credit card and ATM fees can be as high as 3% of the transaction value, while in other cases they are much higher, and remittance fees can be as high as 15% of the transaction value.

  1. Generally lower transaction fees

The transaction costs associated with Bitcoin are lower than those associated with other digital payment methods such as credit cards and PayPal. As a current or potential Bitcoin user, it is your responsibility to determine whether the benefits of the world’s most popular cryptocurrency outweigh its disadvantages. There is no “right” or “wrong” response; on the contrary, there is only one investment goal, value, and risk tolerance that best suits you.

  1. Anonymity and privacy

On the other hand, Bitcoin’s built-in privacy features enable users to isolate their Bitcoin accounts from their public identities as needed. Although it is feasible to track bitcoin transfers between users, it is difficult to determine who these users are in the real world.

  1. Independent of political agents

Bitcoin is not formed or managed by government agencies (such as central banks) without political interference. Bitcoin units are harder to freeze or seize because they exist outside of any political system, which makes it harder for the government to do so, whether in a legal criminal investigation.

Due to its decentralized structure, widespread adoption and high liquidity, Bitcoin is not responsible for its inventor. Many little-known cryptocurrencies account for the vast majority of their total supply. Compared with other cryptocurrencies, the founders of these currencies may affect the supply and, to a certain extent, their value, thereby negatively affecting other token holders.

  1. There is an inherent scarcity

Compared with traditional currencies and non-scarce cryptocurrencies (such as Dogecoin), Bitcoin’s inherent scarcity may maintain its long-term value. Dogecoin is a popular Bitcoin competitor that is not limited by supply. In a sense, the absence of Bitcoin gives money inherent value, just as gold and other precious metals do through their scarcity. They often do this – for example, the United States Federal Reserve launched the quantitative easing program after the global financial crisis in the late 2000s, which generated trillions of dollars. Although the long-term consequences of such measures are still uncertain, they have attracted the attention of many economists.

As the most popular and commonly used cryptocurrency in the world, Bitcoin has inherent advantages over competitors’ coins and traditional “fiat” currencies. Compared with legal tender, the cost for cross-border purchases is lower. It has inherent scarcity, should be able to maintain its value stability, and make it an excellent inflation hedge tool, there are some advantages. Some coins and key storage media associated with the Internet have serious security vulnerabilities, threatening users’ money loss. In terms of investment, Bitcoin is so volatile that it is not suitable for anyone to consider except for investors who can bear the most risk. In addition, carbon-intensive Bitcoin mining is a global environmental disaster.