Maximize Your Profits: Bitcoin Breakdown Profits
Advantages of Using Bitcoin
Like conventional currency, bitcoin also has advantages and disadvantages in its application. Speaking of advantages, bitcoin is known for its high level of security.
So far, conventional currency is known to be very vulnerable to counterfeiting. But the application of the cryptographic system applied to bitcoin keeps its owners from similar risks. In addition, bitcoin is able to act as a global currency.
Even though every country has its own currency, bitcoin is still able to exist and enter the financial system of any country. Bitcoin knows no national boundaries, is not shaken by political conditions in government, and is not affected by anything.
Another great thing is that bitcoin can act as a protector from the inflation rate. Bitcoin can also suppress excessive inflation rates.
In addition, bitcoin is a new form of public savings that is implemented in a hassle-free system. In addition, by saving bitcoins, all financial intermediaries that are usually done in banks can be eliminated. Holders also do not need to pay service and registration fees.
Disadvantages of Using Bitcoin
In the midst of the various advantages of bitcoin, this one digital currency actually has a number of weaknesses that can be risky in its use. The first drawback of bitcoin is its unstable currency value. Bitcoin is a speculative currency. Meanwhile, currently there are not enough companies that offer buying and selling of products with bitcoin as a means of payment.
Next, as a virtual currency, bitcoin is stored in the form of a digital file or known as a wallet file which is very risky against hacking by hackers. The reason is, the wallet file is similar to the function of a cash wallet.
Wallet files stored on the hard disk of electronic equipment are also very vulnerable to damage. In addition, in the event of a virus attack on the hard disk, all the bitcoins in the wallet file simply disappear.
Not to mention the risk that the contents of the bitcoin owner's hard disk are accidentally deleted. More painful than cash, you lose everything in your wallet without being able to trace where it disappeared. In addition, people who have expertise in computerization have the potential to steal the money.
Another risk that must be borne by bitcoin owners is that their circulation is not controlled by the government or authorized financial institutions. As a result, these conditions open up great opportunities for criminal acts such as money laundering and tax evasion.
The lack of government control also makes bitcoins appear worthless. In addition, some financial observers consider bitcoin to be an illegal currency because it is not driven by valid legislation before the law.
Bitcoin Currency Unit
Like currency in general, bitcoin is also deemed necessary to have a special unit in its mention. There have been many discussions held by bitcoin activists to create units for bitcoins. Until now, the use of bitcoins is used with a unit limit of 8 decimal places.
A number of names were proposed including starting from 1 bitcoin with a symbol of 1 BTC. Next is 0.01 BTC which is equivalent to 1 cBTC or 1 centibitcoin. cBTC is also often pronounced as bitcent.
Next is 0.001 BTC which will later be called 1 mBTC or 1 millibitcoin. Its current designation still varies, such as mbit, millibit or even bitmill. Above that is 0.000001 BTC which is equal to 1 microbitcoin and is known as ubit or microbit.
Even though it has units, its value can never be equated with the use of currency exchange rates in conventional currencies. While the smallest denomination of bitcoin as well as a very special designation is satoshi. 0.00000001 BTC is equal to 1 satoshi named after the inventor.