Benefits
Decentralization - The real meaning behind Bitcoin, is the freedom we get. Governments and banks control our money, forcing us to use it only for what they see fit. The perfect example of this is in the world of bitcoin itself - when banks like Leumi stop transfers to trading venues or money changers and do not allow their customers to buy freedom, ahem sorry… Bitcoin.
Accelerating transaction speeds - Today, if we want to send money abroad, we will usually have to wait between three days and a week. With Bitcoin you can transfer money anywhere in the world even in a quarter of an hour.
Reduction of transfer fees - For the same bank transfer that we will make abroad and take several days, we will also have to add a draconian fee of over 6% in most cases. In Bitcoin, the commission protocol is structured in such a way that the commission will be minimal in relation to the transaction. If you want to understand how the commission mechanism works, click here.
Can not be forged - thanks to the cryptographic connection between Block and its predecessor.
Increased transparency and trust - the fact that the accounting diary (blockchain) is online, updated in real time and exposed to the naked eye - indicates that it is more transparent and reliable than systems that exist in the world today.
Disadvantages
Bitcoin is not really anonymous - it is pseudo-anonymous. That is, when we as Bitcoin holders make a money transfer, our wallet address is exposed to the blockchain diary. The system can not link the wallet address to us directly. However, since we are in a 'hybrid' world - combining the old reality of centralization and monopoly with a new reality of decentralization and delegation of authority, we are still assisted by mediators in daily life. In order to trade in the digital currency exchange for example, we will need to verify our identity. In order to purchase Bitcoin through a money changer, we will need to disclose our credit card. Through these ways it will be possible to associate our public wallet address with our personal identity.
Scalability - the ability to handle larger dimensions (with greater use and demand). Bitcoin is still in its infancy, and while credit card companies like MasterCard Visa can handle about 7,000 transactions per second, Bitcoin can now only handle about 5-7 transactions. However, there are many technological improvements some of which have already been implemented (but not yet made accessible) and some in their own way, and they have completely changed the picture.
Regulation and Taxation - Since Bitcoin and the world of cryptocurrencies are in their infancy, there is a lot of uncertainty and fog surrounding the big question - how will governments treat it in terms of legislation, enforcement and taxation? Let's start in an orderly manner, legislation - there is currently no clear legislation in the field and many governments (including Israel) are holding discussions and trying to understand how to approach this field. Enforcement - Not really right now, which leaves this market hacked into a wide variety of scammers and thieves who will try to steal your money in the most creative ways. Taxation - As of this writing, the state treats Bitcoin as an asset and therefore must declare profits at the time of realization and pay capital gains tax (25%).
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