Crypto for newbies: what are the pros and cons in 2023

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Crypto for newbies: what are the pros and cons in 2023
Crypto for newbies: what are the pros and cons in 2023

What are the pros and cons of Bitcoin in 2023?

Let's start with what might be the drawbacks

Bitcoins are still an uncommon payment method and this contributes to making its value unstable. At a legal level there are some difficulties, because there are countries that do not allow its unconditional use, for example credit institutions in Vietnam cannot use it.

Being a decentralized structure, if you lose the private key of your Wallet, it is no longer possible to restore it. The risk of deflation is high: in fact, as the number of bitcoins available decreases, their price rises and speculation on the part of investors increases.

There are large swings in their value, as the few participants determine their course: small events, activities and transactions can greatly affect the price. A decrease in investors, who decide to dedicate themselves to other markets, can also cause a decline in this cryptocurrency.

In 2023, the European Union approves the Markets in crypto-axis, the first regulation in the sector.

Here's what the benefits might be

Cryptocurrency protects against inflation, as a ceiling is set on the circulation of the currency at a given time.

It promotes freedom of payment, as Bitcoin can be used regardless of borders between countries and continents, thus also contributing to a certain ease of use. The costs associated with the transactions are lower than with traditional currencies and it is enough to have the address of the beneficiary at hand, indicate the desired amount and send the sum with a click, thus executing the operation easily.

With this system sellers are better protected, since it is not possible to reverse the amounts paid, even if this involves disadvantages for the customer. Finally, the security and completeness of the information required for transactions is guaranteed through Blockchain technology; your Wallet is encrypted and you can perform regular backups, not to mention that no data relating to users' purchasing behavior is collected.

In general, it can be said that cryptocurrency was seen by some as a means to democratize international finance precisely in the period of the great recession, favored as it is known by the deregulation of financial markets.

Other analysts, on the other hand, do not see a full legality of the currency itself on a par with official currencies in the global market. Bitcoin in particular, as we read in the analysis above, brings its advantages and disadvantages.