Bitcoin Risks

I am a judgment matchmaking expert that writes often. Bitcoin is a proprietary digital token payment system. Bitcoin is a form of bartering system which competes with checks, cash, PayPal, or credit cards. Bitcoin provides a private (or perhaps even an underground) way to pay for goods and services. My guess is that unfortunately, some Bitcoin purchases are probably for illegal things or services.

The primary advantage of using Bitcoin is that it is a private payment method. Bitcoin comes with many drawbacks, including:

1) Although Bitcoin tokens has its charms, it’s proprietary and not a part of, or backed by, any government. Just a finite number of Bitcoins have been created, and that causes Bitcoins to appear to become worth more than they actually are. By restricting the number of coins made, along with all the hype about them, has raised the cost of Bitcoins.

2) Most of Bitcoin’s benefits might have unproven worth. The publicized benefits include the ability to e-mail your friends money, it is based on gold, it has privacy and stability, etc. On the other hand, cash, checks, credit cards, prepaid money cards, money orders, arranging to barter with anything (e.g., postage stamps), wire transfers, and PayPal; seem to cover nearly every possible payment situation.

3) Purchasing Bitcoin tokens is not cheap. And besides EBay, purchasing Bitcoins is not simple or easy; and besides (probably) EBay, many of the Bitcoin token vendors seem goofy. For a test, I emailed four Bitcoin exchange vendors, including 2 relatively close to me, and not one of them responded. When you buy Bitcoin tokens, there are no refunds.

4) In my testing of software programs to create a Bitcoin token “wallet” on the computer seemed buggy and slow. I tested 2 different Bitcoin wallet programs, and it seemed as if they would need to have taken days to finish coordinating things with the Bitcoin remote server network.

5) I would guess that because Bitcoin tokens are totally secure and private, and because Bitcoins may be utilized to buy anything any place, using them might get you noticed by the government. Who could say, maybe that guy with unobtainium for sale that you may just purchase using Bitcoins, is actually with a certain law enforcement agency, trying to then set you up to be busted.

6) Using Bitcoins, the chances of being burned for things you buy increased a lot, because almost no seller information gets disclosed to the buyer, like the seller’s name and address.

I might be wrong; and perhaps Bitcoin token usage will grow, and more Bitcoin tokens will get issued, and it will be standard on portable devices, and become accepted by nearly every conventional store, as an example Amazon and Apple. Right now, the ways to pay for things bought on Amazon with Bitcoin tokens are all goofy. And, if you want to exchange Bitcoins for common items, the markup profit you must pay make what one pays to exchange another country’s currency at some airport, seem low.

I believe I’m right, and the majority of folks should not play with Bitcoin tokens. If you decide to experiment with Bitcoin, make sure not to invest more than you’re willing to lose. Very often, Paying with Bitcoin tokens, one can’t guarantee a seller, that you will get anything bought, or that one day it might be made illegal, or that the wave of excitement over Bitcoin will someday vanish.