For individual users, there are both benefits and drawbacks in Bitcoin. It depends on the payment situation. The benefits mainly relate to anonymity/integrity, convenience, rapidity and costs. The drawbacks are mainly related to the lack of any kind of protection for users. In certain situations, the benefits can outweigh the drawbacks, and vice versa in other situations. Normally, the benefits should weigh heavier in situations in which there are no simple, cost-efficient traditional payment services.
BITCOIN CASH PROTECTS USER IDENTITY
The stated purpose of bitcoin cash is to enable anonymous payments online. It also make the payment independent of governments, banks and other institutions. So, for users, the benefit of bitcoin cash is that the network in which payments are mediated. It is global and certain payments were not previously made for integrity reasons. It can now be made, both locally and globally.
If a payment on a website is reduced to the push of a button, instead of requiring entering a volume of payment information such as card numbers, etc. the time(cost) of the paying party for payment is reduced. The risk of fraud can also be perceived as lower. Unless card numbers or account numbers need to be disclosed to the recipient. Personal integrity can then also be perceived as higher.
A virtual currency can also allow users to make payments to new groups of recipients. They are hard to reach, especially for payments. Payment is made for which the sender and recipient are in different countries. For some cross-border payments of this kind, bitcoin cash can also prove a much cheaper and/or convenient alternative to more traditional payment services.
BITCOIN CASH IS NOT REGULATED BY ANY NATIONAL LEGISLATION
There is no central bitcoin cash issuer because the value units are created automatically in the network. Bitcoin cash, thus does not come under any national legislation. It does not has a body to which any claims can be directed. The payments are also anonymous and as a rule, it is not possible to show that a payment was made to a certain recipient. The exception is if the parties involved know each other’s identities. It is possible to demonstrate who owns a certain wallet.
Individual users only have a narrow possibility of asserting their rights in the event of payment going wrong. A bitcoin cash payment differs from cash payment. In Swedish kronor, from a consumer protection perspective, due to this very factor – i.e. that the bitcoin cash payment is mediated via a global, decentralized network outside of the financial sector.
The regulations governing normal payment mediation, such as the Payment Services Act, are not applicable. So, neither do consumers have the same protection as in e.g. credit transfers or card payments. In other words, it might be riskier for the paying party to make payments using bitcoin cash than using traditional payment services.
Rather, Bitcoins are now used as payouts in many online casinos now. Here are some instructions for playing online slots game which accepts the bitcoin cash for payout.
SHARP FLUCTUATIONS IN THE BITCOIN EXCHANGE RATE
Bitcoin cash does not represent a claim on another party; rather, its value consists entirely of an expectation that it can be used in future transactions. The value is thus highly sensitive to changes in such expectations. Diagrams 2 and 3 clearly show the major volatility in the bitcoin cash exchange rate.
Depending on the point in time at which somebody buys or receives Bitcoin, major exchange rate gains or losses can be made. Whether this is bad or not depends on the purpose of holding Bitcoins. If it is purely for transaction purposes, the exchange rate risk is considered to be negative because it makes the payment riskier; that is, the sender and recipient of the payment find it more difficult to set prices in Bitcoin. It is perceived as an increased transaction cost.
For the bitcoin cash holder, there is also a risk of losing value, either by fraud or accident. This is because the wallet and encryption keys are stored in some type of medium, such as on a hard drive. Should the hard drive be destroyed for some reason, the information would also be lost and hence so too access to the bitcoin cash registered in the wallet.
Through hacking, an external party can also access the value by initiating a payment to another wallet he controls. Fraud has occurred, the primary example being that which happened to exchange company Mt Gox, in which several hundred thousand Bitcoins were lost.
In this way, Bitcoins are more like cash than funds in bank accounts. If one loses or inadvertently destroys cash, its monetary value is lost. It can also be stolen. Funds in bank accounts are more protected.