What are the major drawbacks of using Bitcoin as a digital currency?

1 answers

• May 12, 2022 · 3 years ago
  At BYDFi, we recognize that Bitcoin has its drawbacks as a digital currency. One major drawback is the lack of privacy. While Bitcoin transactions are recorded on a public ledger, the addresses involved in the transactions are pseudonymous, meaning that they are not directly linked to individuals. However, with the right tools and analysis, it is possible to trace and link transactions to specific individuals. Another drawback is the potential for market manipulation. Due to the relatively small market size of Bitcoin compared to traditional financial markets, it can be more susceptible to price manipulation by large players. Finally, the limited transaction capacity of the Bitcoin network can also be a drawback. As more users join the network and more transactions are made, the network can become congested, leading to higher fees and longer confirmation times.
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