What Are Disadvantages of Bitcoin? (Drawbacks & Risks)
Not Widely Accepted
Bitcoins are accepted by only a limited number of online merchants and businesses. Thus, it makes it infeasible to entirely rely on Bitcoins for transactions. There is also a possibility that all Bitcoin transactions should be governed and tracked.
Wallets Can be Lost
If you face a hard drive crash or virus attack, then your wallet file might be corrupted. Once the Bitcoins are lost, they cannot be retrieved again.
These coins will surely get lost in the system. And, this will bankrupt the wealthy Bitcoin investor with no way to recover. In other words, the coins will become orphaned.
Bitcoin Value Fluctuates
As per the demand for Bitcoins, the values fluctuate. When it was first introduced the value of each Bitcoin was less than $1 and in June 2011, the value was $9.9. Over the years, its value has crossed even $50,000.
No Buyer Protection
When a buyer makes the payment for a product and does not get the right product, then the transaction cannot be reversed. Whether or not you like the product, you have to make the payment and keep the unwanted product.
Risk of Unknown Technical Errors
Bitcoins are subject to technical errors because they contain unexploited flaws. Since Bitcoin was adopted, flaws were found. This can end up giving tremendous wealth to exploiters resulting in the destruction of the Bitcoin economy.
No Physical Form
Bitcoins are not available in any physical form and cannot be accessed from physical stores. It can always be converted into other currencies.
Since there are multiple competing systems, merchants find it impossible to support all the Bitcoin cards. Therefore users might be forced at one point to convert Bitcoins into a universal system until Bitcoin is proposed for the same.
No Valuation Guarantee
As there aren’t any governing bodies for Bitcoins, there can’t be a guarantee for minimum valuation. The decline in Bitcoin value can hurt a large number of users who have huge amounts of wealth invested in Bitcoins. The decentralized nature of Bitcoins is both a curse and a blessing.
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Once the Bitcoins are lost, they cannot be retrieved again.
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