Bitcoins are still unknown to many as people are still not very aware of digital currencies. Bitcoin gained its popularity because of its use in online businesses.
are still to be widely accepted as an online currency. This makes Bitcoins not very feasible replacement of conventional currencies. Biggest problem is of Governments of various countries denial to accept Bitcoin as an acceptable mode of business transaction as exchanges and transactions made in Bitcoins remain non track able by government agencies.
Security issues are a major disadvantage of Bitcoin, The Bitcoin wallets can be lost if data is corrupted by virus or if hard drive of a computer crashes. Nothing can recover the lost amount of Bitcoins in such incidents. Wealthiest Bitcoin investor can be rendered bankrupt within matter of seconds and the Bitcoins may be lost permanently.
Valuation of Bitcoins is another major disadvantage. The valuation fluctuates as per Bitcoin demands. The continuous change in Bitcoin prices creates huge confusions.
Bitcoins fail to provide any protection to the buyer as transactions made in Bitcoins are not traceable. The seller may refuse to supply goods even after receiving payments in Bitcoins, but the buyer has no way to prove it.
Bitcoin does not have any valuation guarantee and Bitcoin does not have any physical form. Both of these make Bitcoin unfit to be used in physical stores. Bitcoins also may cause deflation as more and more number of Bitcoins maxes out. All these do not place Bitcoins in an advantageous spot in business transactions.