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Home 2018-01-24T14:28:21+00:00

The Good, Bad and Ugly Side of Buying Bitcoin from Canada in 2018

Nowadays, there aren’t a lot of people out there that haven’t heard of the term bitcoin in Canada, but a lot of people still don’t really know what it means. It is a digital form of money that is protected by cryptography which makes the transactions secure and it can only be used in digital form and it can never be printed. Now that you have the base information, it is also important for you to know that this digital form of money has its own pros and cons and we feel it is important for you to know more about them and in this article we will list some of them for you.

Pro: Decentralization

The term decentralization not only means that this currency has no central server, but it also means that there is no such thing as a “Central Bank” either. All bitcoins are produced through the process of mining, which means verifying all of the transaction that take place within the system and as a reward for this transaction validation the system gives the miners more bitocins. Anyone can be a bitocin miner in Canada and since the currency itself is digital, the mining process is also done digitally, using a computer.

bitcoin mining pool

Con: A lot of uncertainty

 Since bitcoin is still a pretty new and non-governmental currency that is also international, there is a lot of uncertainty around the legal status of the whole thing. When you make a bank deposit, you are protected and insured by law and this is something that simply doesn’t exist in the world of the bitcoins, so there is no type of protection for any type of purchase that you make and that is something that scares a lot of people and stops them from making the venture.

Pro: Transactions can be conducted very quickly

This is something that is great and an element that a lot of people love about bitcoins. Regardless of whether you send bitcoins to your neighbor across the street, or to a business partner in another city in Canada, or a family member across the world, the transaction will be conducted very quickly. Most of the time, the longest that it would take for a transaction or a purchase to be verified is about an hour, and that is drastically faster than the days that it may take for a traditional money transfer to be completed.

Con: You can neither touch it nor see it

The thing about people is that they like to know exactly what they have and how much they have of it and they like to do that by seeing and touching the items. Something that also stops a lot of people from going into the bitcoin world is the fact that bitcoins are intangible. You can never see them or touch them like you would be able to with real money or gold because everything is digital and, as we said, that is a huge problem that causes a lot of insecurities in people.

Pro: Low fees

As we said before, there is no specific bank or a service, like for example PayPal that can conduct or control all of the transactions that happen. That is why, generally, any transactions with bitcoins have much lower fees. Something else that this means is that there is very little extra costs involved in obtaining bitcoins other than the cost of buying the bitcoins themselves which depend on the current climate at the time of the purchase.

As we said, the term bitcoin is everywhere in Canada and it can be very easy for you to fall for it just because it sounds good, without actually doing any proper research. We want you to make the most educated decision possible because you will still need to make a significant payment at the begging, so hopefully seeing some of the pros and cons in this article will help you do just that- make the most educated decision you possibly can.