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What are the drawbacks of Bitcoin (What are the benefits of Bitcoin)

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What are the drawbacks of Bitcoin? According to CCN, the U.S. Securities and Ex

What are the drawbacks of Bitcoin (What are the benefits of Bitcoin)

What are the drawbacks of Bitcoin? According to CCN, the U.S. Securities and Exchange Commission (SEC) recently released a document stating that Bitcoin is a highly volatile asset. If an investor holds a large amount of BTC, the value in their portfolio will increase. However, if a company buys more than 100,000 BTC, it may cause excessive price fluctuations and render it useless. According to the “Banking Law,” cryptocurrency can be used as a digital asset or other tangible items for payment, transfer, and exchange.

What are the benefits of Bitcoin

With the recent surge in Bitcoin prices, more and more people are starting to pay attention to it. According to statistics, the price of Bitcoin has risen from its peak of $47,000 on January 20 to around $36,000 today. On January 22, around 6 p.m., the price of Bitcoin reached above $29,000 and then quickly dropped to nearly $10,000. On February 24, around 8:50 a.m., the price of Bitcoin once again broke through the 19,000 USDT integer mark (equivalent to approximately 17,900 RMB).

Although many users may not agree or have any trading records, Bitcoin can be used as a value storage tool for payment if there is a demand. For example, we can use applications like WeChat to buy Bitcoin. What about ordinary people? The problem solved by blockchain technology is security and privacy issues. (Image source: Internet)

So, what are the benefits and advantages of Bitcoin? First, it is security because it is a data encrypted cryptocurrency generated through hash algorithms. Secondly, Bitcoin’s security and decentralized nature enable people to control their asset private keys, protecting their property from malicious tampering or theft. These two characteristics make it a very good investment choice. Thirdly, it provides anonymity. As long as you have the coins in a certain type of wallet, you can verify your identity. Fourthly, Bitcoin is a highly scalable technology that supports various complex applications such as smart contracts and distributed systems. It also allows other institutional investors to participate in and maintain the digital financial ecosystem. The advantages of Bitcoin are mainly manifested as:

1. Completing all operations without trusting third parties; 2. Completely free and untraceable fund transfers; 3. High level of confidentiality ensures that users’ assets will not be leaked; 4. Difficult to be hacked; 5. No need to hold other people’s digital assets, ensuring individual information sovereignty.

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