Pros and Cons of Bitcoin Digital Currency Research Paper

Pros and Cons of Bitcoin Digital Currency - Research Paper Example The security and networking for Bitcoin users is safe and they have complete control of their transactions. There are no extra fees charged by merchants without the user finding out. The user gets in touch first with the merchant before charging them any extra fees. In addition, Bitcoin protects the user’s personal information so it cannot be viewed by other people who could in-turn try and steal their identity (Cook, 2014). However, all payments in bitcoin cannot be transacted and finalized until the owner’s information is linkedtothe transaction. Therefore, the backing up and the encryption of the Bitcoin guarantees safety for the money. The user’s information is transparent by using the block chain, where all finalized transactions can be viewed by anyone, but your personal information is blocked or hidden from everyone. You can verify transactions anytime in the Bitcoin block chain. Due to Bitcoin being cryptographically secure, it cannot be changed by any organization, government or person. There are usually no fees or very low fees when making payments to Bitcoin unless you would like it done in a quick manner (Dumitrescu&FiricÄÆ', 2014). Then you can increase the fee so that the payment is processed faster. The Digital Currency converts bitcoin into flat currency, which helps the merchant process their transactions at lower fees than when using credit cards or PayPal. The risks are few for Merchant transactions due to bitcoin’s system being cryptographically secure, where fraud is not possible.