Risks and advantages of Bitcoin: the disruptive currency that rethinks the monetary system

November 13, 2019 • By

In Bitcoin, what marks value is exclusively trust and people? By being decentralized, intermediaries are eliminated, banks cannot intervene. The transactions are made from person to person and, in addition, the currency works with open source. As everyone knows the protocol and can access it, it is very difficult to corrupt the system, lotto results something that contrasts with the current system, in which there is practically no clear economic science on how stock exchanges and markets work, or on the basis to what governments make decisions regarding their currencies.

The risks of Bitcoin

The similar reward of Bitcoin can be seen at the similar time as its huge weaknesses. Bitcoin is typically linked to media controversy because it is a totally free of charge system that cannot be forbidden. This feature is not to the liking of recognized financial power. Being a free of charge scheme is inevitably also used to carry out illegal activities. Bit coin is purely another coin, another way of interpreting a financial scheme and another way of treatment the value of cash and things in a different way than we have done so far.

It does not add to illegal events, although it does make easy them, it capitalizes them. Although Bitcoin has not make-believe monetary crime, it offers another likely system to carry it out, but with a number of advantages for the offender: mainly anonymity and transfer. If Bit coin were to become widespread in world market, most money flow would flee the control of countries and establishment. Tracking money is an effective way that state security forces use to prosecute financial crimes. If those traces are erased, the crime becomes virtually undetectable.