Hello in this lesson we are going to cover the advantages and disadvantages of using a cryptocurrency such as Bitcoin, this will be applicable to most of the cryptocurrencies out there. So let's dive straight in. We're going to draw a vertical line down here. Let's extend it and the more that should give us enough room, then it's extended this white line as well. So let's just get on with it. So the advantages of a cryptocurrency so the advantages are freedom.

So, freedom in payment, and warming, but AI is not bound by boundaries. So I can send money to somebody. So let's say five A friend called Bob and I want to send them five bitcoins, I can send it to them. It doesn't matter whether they live five minutes down the road, whether they live in a different city or in a different country, whether they even live in a country, they live on a boat somewhere longer, they actually have no internet access, I can send it them and they can receive it and they can use it. That's fantastic, that you're not bounded by boundaries, because one of the disadvantages is maybe you and the other person that you're sending something to on bad people, maybe what you're doing is fine, but maybe the other person or maybe yourself, the government, for whatever reason has locked down transferring of conventional currency that really does hurt individuals.

So cooperation finally a lot easier because they have lawyers have accountants they have means to get around, but individuals, it can really hurt them. So for that Reason freedom in payment is fantastic. Next a little to no fees. And you might think Can Can there be no fees with Bitcoin or cryptocurrencies yet? The fee is actually dependent on the sender, which I think is a fantastic concept. My thinking, Okay, if it's dependent on me as the sender, I'm always gonna choose no fee.

And you think, yeah, that's how you would do it. But if you choose a fee or a higher fee, that will most likely yield in your transaction. So your transaction being transferred a lot faster than somebody that has a lower fee. So for example, if I'm transferring one Thousand bitcoins, one bitcoin ignoring the actual price of bitcoin as of now or anytime, really, one bitcoin is only 0.1% in terms of a transaction fee that's actually quite low, maybe you'll choose that. Or maybe you really need those 1000 bitcoins to get to the destination, you might even be willing to pay 10% fee, that's more more likely to get to the destination than the 0.1% fee, and maybe you're sending. Here's another scenario.

When finding bitcoins, you don't care how long it takes as long. Let me just break Bitcoin here, as long as he gets there, so maybe you put zero bitcoins of the transaction fee and That mean, it's a zero percent transaction fee, you might take a lot longer than an hour day, month, wherever, most likely won't take them. But you're not forced as long as he gets there. So I think for that reason, it is a an amazing feature, that there are little to no fees. Let me just extend this line again, I was terribly mistaken that that would have been enough and extend it quite a bit. So let's go back up here.

And let's continue with the advantages. So the next advantage, probably one of the biggest for a lot of current users is the security side. So it is the centralized it is distribute distributed across a network and it's not controlled by a single authority, so if let's say one node goes down, it doesn't matter, the network will still operate. So it's a lot more secure. It's anonymous. And for that reason, I think a lot of people will like it.

So that's another advantage. It's transparent. And these two, you might be thinking, how can they both have this at the same time because you can actually see who's sending money to whom, what date, what time and by how much, but it's gonna say, Bob Harris has sent, you know, john oliver, whatever the person name is 100 bitcoins this time, he just has keys. And so it's anonymous, from the perspective that you don't know really who's sending it was transparent so you can actually see The flow of money is great it's actually has transparency and, and anonymity which is usually rare for a system like this. It's less risky for merchants transactions cannot be reversed, which would lead to let's say the profile information of the sender be revealed. So that's great as well.

A central forte cannot cannot come pletely remove it. And what I mean by this completely a temporary government cannot remove Bitcoin in its entirety. But what it can do is really come down on let's say, on the regulation side, it might block exchanges, which are which are centralized. It might say it's illegal to use a cryptocurrency like Bitcoin that has happened in this current climate. So, technically, you can still use it, it's just against the law. So, Central Party cannot completely remove the economy, but it just can really make it awkward for you this person a very advantage, and another advantage is no inflation or at least not in the conventional sense.

No inflation by nature. You To no single authority, issuing more coins and the way they would do with fiat currency. So that's the advantages with our law. Their security is transparency anonymity, there's less risk the fees and freedom of it. So let's cover the disadvantages. There are disadvantages as well and we should cover them still in development, still in development, early stages, which means there are going to be bugs, which means it's not fully fledged out might not be as fast journey It is very fast, we might not be fast in certain scenarios, it might not be able to handle a certain number of transactions in a short period of time which the current system cannot, it is getting better and it is being improved.

Again, something worth mentioning. It's still in development, but what you'll find is a lot of these disadvantages will actually go away with time where the advantages was dying, a lot of the disadvantages will become advantages. So that's one of the great things about this new cryptocurrency climate is that the disadvantages won't stay that way for very long. Next is volatility. It is the actual price of it is highly volatile in terms of exchanging ether from dollar Bitcoin, from Great British pound to Bitcoin or Bitcoin to dollar. So it is volatile and that's partly due to its technology now, you know, fully there yet.

It's heavily due to supply and demand and perception, perception is probably the biggest one. But again, this currency is not even a decade. Old wherever you're going, comparing it against to say a fear currency, which is, in essence, essence thousands of years old and has had thousands of years of evolution for that reason. Yes, it's volatile, but a lot of it, it is just teething pains that and it's gonna go away. Another thing is lack of mass appeal. So not all vendors accepted, especially outside a country like the US and some Eastern countries as well.

But what you'll find is as the mass appeal goes up, the volatility will most likely go down and more money will be fed into the development. So, the mass appeal side, once that goes up, and it is slowly getting there, it will actually help reduce the other disadvantages. The disadvantage central authority interference. So this thing costs about interference, right? I believe so, is essentially linking to what I was saying here. What I was saying, then here, in that a central 40 cannot completely remove it, but it can make it awkward eco point northern regulations that say it's actually illegal to use it.

It could ban exchanges, so it can still have Central Party interference. Lack of recourse. So if for example, you have a bank account with HSBC or Barclays or one of the other big banks and we know what it is, they're backed by government. They have the Our own systems in place as well. So if let's say some sort of fraud were to go on, they will most likely resolve it or help to resolve it to a certain extent. Whereas with cryptocurrency is really not much recourse for people that are doing something that they shouldn't be, and for a victim of one of those acts, so that's something to bear in mind as well.

But as regulation change, and as governments adopt it and set it more, we'll get more of a recourse. I am positive of it, and especially when it comes to the form of exchanges. So what I think will happen is, we'll still have centralized exchanges to an extent and that will just essentially replace banks or banks will become a thing that will probably happen, there will become these exchanges. And they'll have, you know, similar policies in place backed by the government, but the network isn't controlled by the government and I think that's quite a good scenario for cryptocurrencies, no refunds. Obviously with something like credit cards, for example, you can get refunds if something goes wrong. Can't do that with cryptocurrency design, its current form.

There's no physical form. As of yet a lot of people are thinking there never will be think that day may come whether some sort of physical form, but by nature is meant to be digital. So for that reason, probably won't have any major physical form. This is really only a disadvantage in its current climate with the lack of mass appeal. And, again, just people's perception, because people want, you know, be to be to have their money in physical form. But people perception is changing because we are no longer we no longer have currency that's backed by gold.

Some other metal for example, and people go over that so that you'll be the same for this. And the last one that I want to cover is loss of wallets. So if you were to lose your wallet, then you thought screw you can get your coins back. But that's really the same principle for a real wallet. So if I borrow while in my pocket, and he has $5,000, and if I lose that, nobody finds it, nobody gives it back to me, I don't find it. I've lost it.

I can't get them back. So the principles are the same. That's not backed by any government saying, you feel stupid Oh, something happened and you lose your wallet will give you your money back. That is not the way things are. So that's why I wouldn't say much of a disadvantage is just in its current climate because the wallets are the only way of storing it. There isn't a physical or a nova method that's backed by something Then another set of four advantages disadvantages I want to cover and this is the gray area side some of you will see this a black and white but often it's completely black and white the gray area side and first is money laundering.

Next is I'm just going to write a more like first black market, I can write two three or four of them out black market and have elicit be havior remember thinking okay, yeah, this is all bad. So, if the currency whatever it is, facilitates this and somebody wants encourages this, then it's bad. But why urge you to think about is money laundering is a new cryptocurrency Nevers black market and Niva are elicit behavior. They're just been used on a different commodity now, they've been using crypto coming in fear currency they've been using or the sort of commodities and isn't fear based. So really, these aren't by the design of Bitcoin or cryptocurrencies. Some people that are doing these activities do favor Bitcoin due to certain features like the anonymity not regulated by governments, but at the end of the day, the cryptocurrencies don't facilitate it or encourage it.

It's just certain individuals have used it for this. And if you actually look at it statistically, if you look at Silk Road, for example, which is the infamous dark web, black market for buying drugs or what A NAB, you know, the alternative popped up since this has been taken down. You might be thinking okay, now that entirely we've looked at it from the statistical point of view, it actually reduced crime rate. We reduced the spending, the government had to do, let's say from a medical standpoint or a police standpoint, because it's actually a lot safer to buy drugs, again. Mustaine it's good that they were facilitating that. But out of the two, it actually showed the world better off with the Silk Road, Silk Route road.

I mentioned the Silk Road, put route because in the original Silk Road, which is the Chinese route, there wasn't really a road necessary, just a bunch of routes because they had routes around the ocean as well. So it wasn't just that's just a bit of history for you. And I need to say there was a fourth gray area. This is finite supply. Fly. Some people see the Saudi advantage in the finite supply so central parties cannot issue more for lead to inflation.

Some people see it as a disadvantage because that means what if there aren't enough to go around? You can split up a cryptocurrency in the case of Bitcoin, it can be split into up to eight decimal places. So this is the lowest Bitcoin they can do Adam now technology will probably improve they can actually have a lower denomination. So it's one of those things that sort of in the middle is has advantages and disadvantages. So this just has been a video on the advantages and disadvantages of cryptocurrency such as Bitcoin, compared to conventional fiat currency. If you have any questions, feel free to reach out and feel free to go over the video again, check out or The stuff that I've lifted, it's quite a long video.

There's a lot to take in. As usual. Thanks for watching, and I look forward to seeing you in my next lesson.