🕷️ Crawler Inspector

URL Lookup

Direct Parameter Lookup

Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 186 (from laksa122)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa186.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical, ml_categories_json AS ml_categories_json, ml_types_json AS ml_types_json, ml_intent_types_json AS ml_intent_types_json, meta_language AS meta_language, attrs_author AS attrs_author, ifNull(toUnixTimestamp(attrs_publish_time), 0) AS attrs_publish_time, ifNull(toUnixTimestamp(attrs_original_publish_time), 0) AS attrs_original_publish_time, ifNull(attrs_is_republished, 0) AS attrs_is_republished, ifNull(attrs_nr_words, 0) AS attrs_nr_words, ifNull(attrs_boilerpipe_nr_words, 0) AS attrs_boilerpipe_nr_words, ifNull(body_ext_links_number, 0) AS body_ext_links_number, ifNull(body_int_links_number, 0) AS body_int_links_number, ifNull(meta_nofollow, 0) AS meta_nofollow, ifNull(meta_noarchive, 0) AS meta_noarchive, ifNull(props_was_rendered, 0) AS props_was_rendered, ifNull(src_redirect, \'\') AS src_redirect, ifNull(download_time_msec, 0) AS download_time_msec, ifNull(download_ttfb_msec, 0) AS download_ttfb_msec, ifNull(download_size, 0) AS download_size FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.cointree.com/learn/pros-and-cons-of-bitcoin/\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.cointree.com/learn/pros-and-cons-of-bitcoin/\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.cointree.com\/learn\/pros-and-cons-of-bitcoin\/","crawl_time":1777256448,"first_indexed_time":1638499823,"http_code":200,"src_unparsed":"com,cointree!www,\/learn\/pros-and-cons-of-bitcoin\/ s443","src_root_hash":"599103008885977186","history_drop_reason":null,"meta_title":"Pros and Cons of Bitcoin: 20 Advantages and Disadvantages of BTC","meta_descriptions":["Learn about the pros and cons of bitcoin, including the outsized returns, self-custody, security, volatility and fixed supply. Assess bitcoin’s strengths."],"attrs_boilerpipe_text":"What are the pros and cons of Bitcoin? Should I buy bitcoin? If you’re thinking about investing in bitcoin, it’s important to get a good understanding of the advantages and disadvantages of the blockchain protocol. In this guide, you’ll learn about both bitcoin’s strengths and weaknesses, so you can make an informed decision.\n10 advantages of bitcoin\n1. Store of value \nEarning the title of ‘digital gold’, bitcoin is now accepted as a store of value by many sophisticated investors. As you’re probably aware, a store of value is a commodity, asset, or currency that keeps its value over a long period of time — a trait that’s especially important during inflationary times. Read our in-depth article to learn more about bitcoin as a\nstore of value\n. \n2. Outsized returns\nBitcoin has been the best performing asset class of the last decade. It even outperformed the second-best performing asset class, the NASDAQ 100, by an order of magnitude. Even small investments have generated outstanding returns for long-term investors. Naturally, bitcoin’s historic rise has generated many\nbitcoin success stories\n. \n3. Self-custody\nIndividuals can self-custody cryptocurrencies like bitcoin. You don’t need to rely on a bank, legal documents, or a single entity to take complete ownership of your assets. This makes an incredible impact in countries across the globe without strong property rights, giving individuals more control over their future. And if you self-custody your own bitcoin, make sure you select the\nbest bitcoin wallet in Australia\n. \n4. Decentralised\nBitcoin is the most decentralised\ncryptocurrency\n. What does that mean? It means that the Bitcoin network is distributed across many different computers, known as nodes. Decentralisation is so important because it prevents a single point of failure to attack, making it almost impossible for any organisation or government to take down the network.\\\n\\\nNotably, Bitcoin was the first ever protocol to solve the Byzantine Generals problem and create a decentralised network with a shared consensus and that invention gave way to every cryptocurrency that followed, including Ethereum, Litecoin, Dogecoin and Polkadot. \n5. Permissionless\nAnyone can access the Bitcoin network. It doesn’t matter where you live or how much money you have, it’s an open peer-to-peer network that everyone can use. Being permissionless is important to us at\nCointree\n, as we imagine a future in which the digital economy is accessible to all.\n6. Secure\nBitcoin is incredibly secure. Its public key cryptography makes sure every transaction is authentic. Its decentralisation means no centralised power can manipulate it for their benefit. And its irreversibility means nobody can go back and change the data. \n7. 24\/7\nUnlike traditional financial markets, bitcoin doesn’t close in the afternoon or over the entire weekend. Bitcoin is tradeable 24\/7, 365 days per year. Not to mention, sending bitcoin is faster than a bank transfer. While remittance payments to family overseas can take days, people can send and receive bitcoin in 10 minutes to an hour. \n8. Fixed supply\nUnlike fiat currencies like the US dollar, governments cannot print bitcoin whenever they want more money. There will only ever be 21 million bitcoins. The importance of that scarcity is highlighted in the\nstock-to-flow model\n. \n9. Divisible\nEach bitcoin is divisible into 100,000,000 satoshis (or sats for short). That means you can use bitcoin to pay for a cup of coffee, for micro-payments online, and ‘\nstack sats\n’ with as little as $10. Being able to use fractions of a bitcoin can make it the peer-to-peer digital currency that it was always intended to be, especially with the Lightning Network. \n10. Inflation hedge\nMany sophisticated investors see bitcoin as an inflation hedge, including the billionaire investor Paul Tudor Jones who said it’s a better inflation hedge than gold. With ongoing money printing from central banks across the world, more and more investors are turning to bitcoin as an inflation hedge. \n10 disadvantages of bitcoin\n1. Volatility \nBitcoin is highly volatile compared to other assets like property. While that’s to be expected with any fast-growing asset, and has been a boon for traders, it can be hard to stomach at times for long-term investors. As always, risk management is critical in such a market. \n2. Competitors\nWhile bitcoin remains the dominant cryptocurrency (with a market cap double the next biggest cryptocurrency), there are more and more coins being created every day. And while it holds the dominant position, other competitors like Ethereum are designing their monetary policy to be more competitive with bitcoin. \n3. Awareness\nWhile bitcoin is now being covered by the biggest media companies in the world, there are still many people who aren’t aware of it or why it’s so transformative to society. For example, while many people are aware that it has been a successful asset to generate wealth with, they don’t recognise how it can empower unbanked communities. \n4. Banned in China\nChinese miners and investors have played a large role in the history of the Bitcoin network, contributing significant investments and hash power to the network. However, with the government cracking down on Bitcoin, it looks like it will be prohibited in China. \n5. Learning curve\nThere’s a steep learning curve to fully understand bitcoin, and that can be daunting to beginner investors. Luckily, there are guides that explain\nwhat bitcoin is\n. More and more investors are educating themselves every day.  \n6. Energy concerns\nBitcoin’s proof-of-work consensus system uses energy to help secure the network, with miners running specialised computers and burning energy. While more and more miners are switching to renewable energy and helping drive the green revolution, this wasn’t a big focus in bitcoin’s early history. \n7. Transactions Per Second\nOther blockchain networks like\nSolana\nand\nAvalanche\noperate with much higher Transactions Per Second (TPS) than bitcoin, making them more suitable for high throughput applications. While bitcoin is the dominant store of value in crypto, other blockchains can be better for different use cases. \n8. History\nWhile bitcoin is now well over a decade old, that’s still a short time compared to gold, which has been used as money for thousands of years. Still, investors are increasingly turning towards bitcoin as a superior version of gold. \n9. Web3\nWeb3\n, the decentralised internet, is one of the most exciting aspects of cryptocurrency. While bitcoin may be used as a payment currency on other web3 platforms, other crypto projects are leading the way in web3. \n10. DeFi\nSimilarly to web3, other cryptocurrencies like Ethereum are leading the revolution in decentralised finance (DeFi). And for a truly accessible financial economy for all, DeFi will play an important part in that. \nLooking at the pros and cons of bitcoin, can bitcoin become the world reserve currency?\nHaving looked at the pros and cons of bitcoin, can bitcoin really become the world reserve currency? As Satoshi said, “It might make sense just to get some in case it catches on. If enough people think the same way, that becomes a self fulfilling prophecy.”","attrs_markdown":"[Buy \/ Sell](https:\/\/www.cointree.com\/trade\/cryptocurrencies\/)[Portfolios](https:\/\/www.cointree.com\/portfolios\/)\n\n[Trade with us](https:\/\/www.cointree.com\/learn\/pros-and-cons-of-bitcoin\/)\n\n[Personal](https:\/\/www.cointree.com\/personal\/)[SMSF](https:\/\/www.cointree.com\/smsf\/)[Advisors](https:\/\/www.cointree.com\/advisors\/)[Trade Gold](https:\/\/www.cointree.com\/gold\/)\n\n[Learn](https:\/\/www.cointree.com\/learn\/)\n\n[Company](https:\/\/www.cointree.com\/learn\/pros-and-cons-of-bitcoin\/)\n\n[Why Cointree](https:\/\/www.cointree.com\/why-cointree\/)[Referral programme](https:\/\/www.cointree.com\/trade\/referrals\/)[Careers](https:\/\/www.cointree.com\/company\/careers\/)[Help and support](https:\/\/support.cointree.com\/hc\/en-us)[Partners](https:\/\/www.cointree.com\/partners\/)[News](https:\/\/www.cointree.com\/news\/)\n\n[Contact us](https:\/\/www.cointree.com\/contact-us\/) [Sign In](https:\/\/auth.cointree.com\/Account\/Login)  [START NOW](https:\/\/auth.cointree.com\/Account\/Register)\n\nPopular searches[Dogecoin](https:\/\/www.cointree.com\/search?q=doge)[SMSF](https:\/\/www.cointree.com\/search?q=smsf)[Bitcoin](https:\/\/www.cointree.com\/search?q=Bitcoin)[Wallet](https:\/\/www.cointree.com\/search?q=wallet)\n\n[Buy \/ sell](https:\/\/www.cointree.com\/learn\/pros-and-cons-of-bitcoin\/)\n\n[Portfolios](https:\/\/www.cointree.com\/portfolios\/)\n\n[Trade with us](https:\/\/www.cointree.com\/learn\/pros-and-cons-of-bitcoin\/)\n\n[Learn](https:\/\/www.cointree.com\/learn\/)\n\n[Company](https:\/\/www.cointree.com\/learn\/pros-and-cons-of-bitcoin\/)\n\n[Contact us](https:\/\/www.cointree.com\/contact-us\/)\n\n[Sign In](https:\/\/auth.cointree.com\/Account\/Login) [START NOW](https:\/\/auth.cointree.com\/Account\/Register)\n\n[Home](https:\/\/www.cointree.com\/)\n\n[Learning Hub](https:\/\/www.cointree.com\/learn\/)\n\n[Pros and Cons of Bitcoin: 20 Advantages and Disadvantages of BTC](https:\/\/www.cointree.com\/learn\/pros-and-cons-of-bitcoin\/)\n\nComfortable with the Basics Series\n\n# Pros and Cons of Bitcoin: 20 Advantages and Disadvantages of BTC\n![Cointree](https:\/\/www.cointree.com\/media\/authors\/image1.png?nf_resize=fit&w=50)\n\n[Cointree](https:\/\/www.cointree.com\/author\/cointree)December 2nd, 2021\n\nLast updated: February 3rd, 2026\n\n![Cointree](https:\/\/www.cointree.com\/media\/blog\/pros-and-cons-feature.png?nf_resize=fit&w=50)\n\nWhat are the pros and cons of Bitcoin? Should I buy bitcoin? If you’re thinking about investing in bitcoin, it’s important to get a good understanding of the advantages and disadvantages of the blockchain protocol. In this guide, you’ll learn about both bitcoin’s strengths and weaknesses, so you can make an informed decision.\n\n## 10 advantages of bitcoin\n### 1\\. Store of value\nEarning the title of ‘digital gold’, bitcoin is now accepted as a store of value by many sophisticated investors. As you’re probably aware, a store of value is a commodity, asset, or currency that keeps its value over a long period of time — a trait that’s especially important during inflationary times. Read our in-depth article to learn more about bitcoin as a [store of value](https:\/\/www.cointree.com\/learn\/store-of-value\/).\n\n### 2\\. Outsized returns\nBitcoin has been the best performing asset class of the last decade. It even outperformed the second-best performing asset class, the NASDAQ 100, by an order of magnitude. Even small investments have generated outstanding returns for long-term investors. Naturally, bitcoin’s historic rise has generated many [bitcoin success stories](https:\/\/www.cointree.com\/learn\/bitcoin-success-stories\/).\n\n### 3\\. Self-custody\nIndividuals can self-custody cryptocurrencies like bitcoin. You don’t need to rely on a bank, legal documents, or a single entity to take complete ownership of your assets. This makes an incredible impact in countries across the globe without strong property rights, giving individuals more control over their future. And if you self-custody your own bitcoin, make sure you select the [best bitcoin wallet in Australia](https:\/\/www.cointree.com\/learn\/best-bitcoin-wallet-australia\/).\n\n### 4\\. Decentralised\nBitcoin is the most decentralised [cryptocurrency](https:\/\/www.cointree.com\/trade\/cryptocurrencies\/). What does that mean? It means that the Bitcoin network is distributed across many different computers, known as nodes. Decentralisation is so important because it prevents a single point of failure to attack, making it almost impossible for any organisation or government to take down the network.\\\\ \\\\ Notably, Bitcoin was the first ever protocol to solve the Byzantine Generals problem and create a decentralised network with a shared consensus and that invention gave way to every cryptocurrency that followed, including Ethereum, Litecoin, Dogecoin and Polkadot.\n\n### 5\\. Permissionless\nAnyone can access the Bitcoin network. It doesn’t matter where you live or how much money you have, it’s an open peer-to-peer network that everyone can use. Being permissionless is important to us at [Cointree](https:\/\/www.cointree.com\/why-cointree\/), as we imagine a future in which the digital economy is accessible to all.\n\n### 6\\. Secure\nBitcoin is incredibly secure. Its public key cryptography makes sure every transaction is authentic. Its decentralisation means no centralised power can manipulate it for their benefit. And its irreversibility means nobody can go back and change the data.\n\n### 7\\. 24\/7\nUnlike traditional financial markets, bitcoin doesn’t close in the afternoon or over the entire weekend. Bitcoin is tradeable 24\/7, 365 days per year. Not to mention, sending bitcoin is faster than a bank transfer. While remittance payments to family overseas can take days, people can send and receive bitcoin in 10 minutes to an hour.\n\n### 8\\. Fixed supply\nUnlike fiat currencies like the US dollar, governments cannot print bitcoin whenever they want more money. There will only ever be 21 million bitcoins. The importance of that scarcity is highlighted in the [stock-to-flow model](https:\/\/www.cointree.com\/learn\/bitcoins-stock-to-flow-model\/).\n\n### 9\\. Divisible\nEach bitcoin is divisible into 100,000,000 satoshis (or sats for short). That means you can use bitcoin to pay for a cup of coffee, for micro-payments online, and ‘[stack sats](https:\/\/www.cointree.com\/learn\/dollar-cost-averaging-cryptocurrency\/)’ with as little as \\$10. Being able to use fractions of a bitcoin can make it the peer-to-peer digital currency that it was always intended to be, especially with the Lightning Network.\n\n### 10\\. Inflation hedge\nMany sophisticated investors see bitcoin as an inflation hedge, including the billionaire investor Paul Tudor Jones who said it’s a better inflation hedge than gold. With ongoing money printing from central banks across the world, more and more investors are turning to bitcoin as an inflation hedge.\n\n## 10 disadvantages of bitcoin\n### 1\\. Volatility\nBitcoin is highly volatile compared to other assets like property. While that’s to be expected with any fast-growing asset, and has been a boon for traders, it can be hard to stomach at times for long-term investors. As always, risk management is critical in such a market.\n\n### 2\\. Competitors\nWhile bitcoin remains the dominant cryptocurrency (with a market cap double the next biggest cryptocurrency), there are more and more coins being created every day. And while it holds the dominant position, other competitors like Ethereum are designing their monetary policy to be more competitive with bitcoin.\n\n### 3\\. Awareness\nWhile bitcoin is now being covered by the biggest media companies in the world, there are still many people who aren’t aware of it or why it’s so transformative to society. For example, while many people are aware that it has been a successful asset to generate wealth with, they don’t recognise how it can empower unbanked communities.\n\n### 4\\. Banned in China\nChinese miners and investors have played a large role in the history of the Bitcoin network, contributing significant investments and hash power to the network. However, with the government cracking down on Bitcoin, it looks like it will be prohibited in China.\n\n### 5\\. Learning curve\nThere’s a steep learning curve to fully understand bitcoin, and that can be daunting to beginner investors. Luckily, there are guides that explain [what bitcoin is](https:\/\/www.cointree.com\/learn\/what-is-bitcoin\/). More and more investors are educating themselves every day.\n\n### 6\\. Energy concerns\nBitcoin’s proof-of-work consensus system uses energy to help secure the network, with miners running specialised computers and burning energy. While more and more miners are switching to renewable energy and helping drive the green revolution, this wasn’t a big focus in bitcoin’s early history.\n\n### 7\\. Transactions Per Second\nOther blockchain networks like [Solana](https:\/\/www.cointree.com\/buy\/solana\/) and [Avalanche](https:\/\/www.cointree.com\/buy\/avalanche\/) operate with much higher Transactions Per Second (TPS) than bitcoin, making them more suitable for high throughput applications. While bitcoin is the dominant store of value in crypto, other blockchains can be better for different use cases.\n\n### 8\\. History\nWhile bitcoin is now well over a decade old, that’s still a short time compared to gold, which has been used as money for thousands of years. Still, investors are increasingly turning towards bitcoin as a superior version of gold.\n\n### 9\\. Web3\n[Web3](https:\/\/www.cointree.com\/learn\/what-is-web3\/), the decentralised internet, is one of the most exciting aspects of cryptocurrency. While bitcoin may be used as a payment currency on other web3 platforms, other crypto projects are leading the way in web3.\n\n### 10\\. DeFi\nSimilarly to web3, other cryptocurrencies like Ethereum are leading the revolution in decentralised finance (DeFi). And for a truly accessible financial economy for all, DeFi will play an important part in that.\n\n## Looking at the pros and cons of bitcoin, can bitcoin become the world reserve currency?\nHaving looked at the pros and cons of bitcoin, can bitcoin really become the world reserve currency? As Satoshi said, “It might make sense just to get some in case it catches on. If enough people think the same way, that becomes a self fulfilling prophecy.”\n\nShare\n\n[![Cointree](data:image\/gif;base64,R0lGODlhAQABAIAAAP\/\/\/wAAACH5BAEAAAAALAAAAAABAAEAAAICRAEAOw==)](https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.cointree.com\/learn\/pros-and-cons-of-bitcoin\/)\n\n[![Cointree](data:image\/gif;base64,R0lGODlhAQABAIAAAP\/\/\/wAAACH5BAEAAAAALAAAAAABAAEAAAICRAEAOw==)](https:\/\/twitter.com\/intent\/tweet?text=https:\/\/www.cointree.com\/learn\/pros-and-cons-of-bitcoin\/)\n\n[![Cointree](data:image\/gif;base64,R0lGODlhAQABAIAAAP\/\/\/wAAACH5BAEAAAAALAAAAAABAAEAAAICRAEAOw==)](https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https:\/\/www.cointree.com\/learn\/pros-and-cons-of-bitcoin\/)\n\n![Cointree](data:image\/gif;base64,R0lGODlhAQABAIAAAP\/\/\/wAAACH5BAEAAAAALAAAAAABAAEAAAICRAEAOw==)\n\n### [Cointree](https:\/\/www.cointree.com\/author\/cointree)\nExchange13+ years experienceAUSTRAC Regulated\n\nA leading crypto exchange helping Australians grow their wealth with the world of crypto. Founded in 2013, our Melbourne-based team has built an intuitive platform that’s easy to use, has low fees, and offers world-class security.\n\n## Ready to invest?\nGet \\$20 worth of BTC free, when you make your first trade. T\\&Cs apply.\n\n[Start Now](https:\/\/auth.cointree.com\/Account\/Register)\n\n## Read Next\n[![Cointree](https:\/\/www.cointree.com\/media\/blog\/web-learning-hub-hero-tax-article-crypto-tax-calculator-australia-crypto-tax-guide-2024-july-8th-2024.png?nf_resize=fit&w=50) Seasoned Investoradvanced Series Navigating Crypto Taxes: Tips for Australian Crypto Investors Navigating crypto taxes can be a challenge as crypto investors often deal with multiple wallets, transactions across various exchanges, and complex on-chain activities such as staking, airdrops, DeFi and NFT trading.](https:\/\/www.cointree.com\/learn\/navigating-crypto-taxes-tips-for-australian-crypto-investors\/)\n\n[![Cointree](https:\/\/www.cointree.com\/media\/blog\/web-learning-hub-hero-tax-article-koinly-australia-crypto-tax-guide-2024-july-1st-2024.png?nf_resize=fit&w=50) Seasoned Investoradvanced Series Australia Crypto Tax Guide 2025 Tax time kicks off on July 1. Wondering about your crypto tax obligations? We’ve teamed up with Koinly to deliver your essential Australia Crypto Tax Guide 2025.](https:\/\/www.cointree.com\/learn\/australia-crypto-tax-guide-2025\/)\n\n[![Cointree](https:\/\/www.cointree.com\/media\/blog\/web-learning-hub-hero-tax-article-coinledger-5-ways-to-save-july-15th-2024.png?nf_resize=fit&w=50) Seasoned Investoradvanced Series 5 Ways Australian Investors Can Save Money on Crypto Tax In this guide, we’ll break down 5 simple strategies that can help you save thousands of dollars on your tax return while staying compliant with Australian tax law.](https:\/\/www.cointree.com\/learn\/5-ways-australian-investors-can-save-money-on-crypto-tax\/)\n\nABN 36 167 203 303.\n\nACN 167 203 303.\n\n[![Digital Economy Council of Australia](data:image\/gif;base64,R0lGODlhAQABAIAAAP\/\/\/wAAACH5BAEAAAAALAAAAAABAAEAAAICRAEAOw==)](https:\/\/www.cointree.com\/partners\/digital-economy-council-of-australia\/)\n\nCompany\n\n- [Why Cointree](https:\/\/www.cointree.com\/why-cointree\/)\n- [Referral programme](https:\/\/www.cointree.com\/trade\/referrals\/)\n- [Careers](https:\/\/www.cointree.com\/company\/careers\/)\n- [Partners](https:\/\/www.cointree.com\/partners\/)\n- [Policies](https:\/\/www.cointree.com\/company\/policies\/)\n- [Promotions](https:\/\/www.cointree.com\/promotions\/)\n- [Bug bounty](https:\/\/www.cointree.com\/company\/bug-bounty\/)\n- [Security](https:\/\/www.cointree.com\/company\/security\/)\n\nTrading\n\n- [Assets and prices](https:\/\/www.cointree.com\/trade\/cryptocurrencies\/)\n- [Portfolios](https:\/\/www.cointree.com\/portfolios\/)\n- [Fees](https:\/\/www.cointree.com\/trade\/fees\/)\n- [Personal](https:\/\/www.cointree.com\/personal\/)\n- [SMSF](https:\/\/www.cointree.com\/smsf\/)\n- [Advisors](https:\/\/www.cointree.com\/advisors\/)\n- [Institutional](https:\/\/www.cointree.com\/institutional\/)\n- [Rush Gold](https:\/\/www.cointree.com\/gold\/)\n\nResources\n\n- [Learning Hub](https:\/\/www.cointree.com\/learn\/)\n- [News](https:\/\/www.cointree.com\/news\/)\n- [Price ticker and tools](https:\/\/www.cointree.com\/tools\/)\n- [Help and support](https:\/\/support.cointree.com\/hc\/en-us)\n- [Call 1300 389 414](tel:+611300389414)\n\nMedia\n\n- [Media Releases](https:\/\/www.cointree.com\/news?filter=pressrelease)\n- [Media Kit](https:\/\/www.cointree.com\/company\/media-kit\/)\n\n[![Digital Economy Council of Australia](data:image\/gif;base64,R0lGODlhAQABAIAAAP\/\/\/wAAACH5BAEAAAAALAAAAAABAAEAAAICRAEAOw==)](https:\/\/www.cointree.com\/partners\/digital-economy-council-of-australia\/)\n\n[![Cointree](data:image\/gif;base64,R0lGODlhAQABAIAAAP\/\/\/wAAACH5BAEAAAAALAAAAAABAAEAAAICRAEAOw==)](https:\/\/www.youtube.com\/channel\/UCLalEIAi3vO59xscJarTtqQ)\n\n[![Cointree](data:image\/gif;base64,R0lGODlhAQABAIAAAP\/\/\/wAAACH5BAEAAAAALAAAAAABAAEAAAICRAEAOw==)](https:\/\/www.facebook.com\/cointreeofficial)\n\n[![Cointree](data:image\/gif;base64,R0lGODlhAQABAIAAAP\/\/\/wAAACH5BAEAAAAALAAAAAABAAEAAAICRAEAOw==)](https:\/\/twitter.com\/CointreeAus)\n\n[![Cointree](data:image\/gif;base64,R0lGODlhAQABAIAAAP\/\/\/wAAACH5BAEAAAAALAAAAAABAAEAAAICRAEAOw==)](https:\/\/au.linkedin.com\/company\/cointree)\n\nDisclaimer - Information found on our website is not a recommendation or financial advice. Past performance is not an indicator of future performance. Cryptocurrency is a highly volatile investment. Your capital is at risk. Our website and marketing collateral use reference rates as an indicator only and should not be used for decision making. Content may not always be entirely accurate, complete or current. Cointree is regulated by AUSTRAC for AML\/CTF compliance.\n\n© 2013-2026 Cointree Pty. Ltd.\n\n[Terms of service](https:\/\/www.cointree.com\/company\/terms-of-service\/)\\|[Privacy policy](https:\/\/www.cointree.com\/company\/privacy-policy\/)","attrs_readable_markdown":"What are the pros and cons of Bitcoin? Should I buy bitcoin? If you’re thinking about investing in bitcoin, it’s important to get a good understanding of the advantages and disadvantages of the blockchain protocol. In this guide, you’ll learn about both bitcoin’s strengths and weaknesses, so you can make an informed decision.\n\n## 10 advantages of bitcoin\n### 1\\. Store of value\nEarning the title of ‘digital gold’, bitcoin is now accepted as a store of value by many sophisticated investors. As you’re probably aware, a store of value is a commodity, asset, or currency that keeps its value over a long period of time — a trait that’s especially important during inflationary times. Read our in-depth article to learn more about bitcoin as a [store of value](https:\/\/www.cointree.com\/learn\/store-of-value\/).\n\n### 2\\. Outsized returns\nBitcoin has been the best performing asset class of the last decade. It even outperformed the second-best performing asset class, the NASDAQ 100, by an order of magnitude. Even small investments have generated outstanding returns for long-term investors. Naturally, bitcoin’s historic rise has generated many [bitcoin success stories](https:\/\/www.cointree.com\/learn\/bitcoin-success-stories\/).\n\n### 3\\. Self-custody\nIndividuals can self-custody cryptocurrencies like bitcoin. You don’t need to rely on a bank, legal documents, or a single entity to take complete ownership of your assets. This makes an incredible impact in countries across the globe without strong property rights, giving individuals more control over their future. And if you self-custody your own bitcoin, make sure you select the [best bitcoin wallet in Australia](https:\/\/www.cointree.com\/learn\/best-bitcoin-wallet-australia\/).\n\n### 4\\. Decentralised\nBitcoin is the most decentralised [cryptocurrency](https:\/\/www.cointree.com\/trade\/cryptocurrencies\/). What does that mean? It means that the Bitcoin network is distributed across many different computers, known as nodes. Decentralisation is so important because it prevents a single point of failure to attack, making it almost impossible for any organisation or government to take down the network.\\\\ \\\\ Notably, Bitcoin was the first ever protocol to solve the Byzantine Generals problem and create a decentralised network with a shared consensus and that invention gave way to every cryptocurrency that followed, including Ethereum, Litecoin, Dogecoin and Polkadot.\n\n### 5\\. Permissionless\nAnyone can access the Bitcoin network. It doesn’t matter where you live or how much money you have, it’s an open peer-to-peer network that everyone can use. Being permissionless is important to us at [Cointree](https:\/\/www.cointree.com\/why-cointree\/), as we imagine a future in which the digital economy is accessible to all.\n\n### 6\\. Secure\nBitcoin is incredibly secure. Its public key cryptography makes sure every transaction is authentic. Its decentralisation means no centralised power can manipulate it for their benefit. And its irreversibility means nobody can go back and change the data.\n\n### 7\\. 24\/7\nUnlike traditional financial markets, bitcoin doesn’t close in the afternoon or over the entire weekend. Bitcoin is tradeable 24\/7, 365 days per year. Not to mention, sending bitcoin is faster than a bank transfer. While remittance payments to family overseas can take days, people can send and receive bitcoin in 10 minutes to an hour.\n\n### 8\\. Fixed supply\nUnlike fiat currencies like the US dollar, governments cannot print bitcoin whenever they want more money. There will only ever be 21 million bitcoins. The importance of that scarcity is highlighted in the [stock-to-flow model](https:\/\/www.cointree.com\/learn\/bitcoins-stock-to-flow-model\/).\n\n### 9\\. Divisible\nEach bitcoin is divisible into 100,000,000 satoshis (or sats for short). That means you can use bitcoin to pay for a cup of coffee, for micro-payments online, and ‘[stack sats](https:\/\/www.cointree.com\/learn\/dollar-cost-averaging-cryptocurrency\/)’ with as little as \\$10. Being able to use fractions of a bitcoin can make it the peer-to-peer digital currency that it was always intended to be, especially with the Lightning Network.\n\n### 10\\. Inflation hedge\nMany sophisticated investors see bitcoin as an inflation hedge, including the billionaire investor Paul Tudor Jones who said it’s a better inflation hedge than gold. With ongoing money printing from central banks across the world, more and more investors are turning to bitcoin as an inflation hedge.\n\n## 10 disadvantages of bitcoin\n### 1\\. Volatility\nBitcoin is highly volatile compared to other assets like property. While that’s to be expected with any fast-growing asset, and has been a boon for traders, it can be hard to stomach at times for long-term investors. As always, risk management is critical in such a market.\n\n### 2\\. Competitors\nWhile bitcoin remains the dominant cryptocurrency (with a market cap double the next biggest cryptocurrency), there are more and more coins being created every day. And while it holds the dominant position, other competitors like Ethereum are designing their monetary policy to be more competitive with bitcoin.\n\n### 3\\. Awareness\nWhile bitcoin is now being covered by the biggest media companies in the world, there are still many people who aren’t aware of it or why it’s so transformative to society. For example, while many people are aware that it has been a successful asset to generate wealth with, they don’t recognise how it can empower unbanked communities.\n\n### 4\\. Banned in China\nChinese miners and investors have played a large role in the history of the Bitcoin network, contributing significant investments and hash power to the network. However, with the government cracking down on Bitcoin, it looks like it will be prohibited in China.\n\n### 5\\. Learning curve\nThere’s a steep learning curve to fully understand bitcoin, and that can be daunting to beginner investors. Luckily, there are guides that explain [what bitcoin is](https:\/\/www.cointree.com\/learn\/what-is-bitcoin\/). More and more investors are educating themselves every day.\n\n### 6\\. Energy concerns\nBitcoin’s proof-of-work consensus system uses energy to help secure the network, with miners running specialised computers and burning energy. While more and more miners are switching to renewable energy and helping drive the green revolution, this wasn’t a big focus in bitcoin’s early history.\n\n### 7\\. Transactions Per Second\nOther blockchain networks like [Solana](https:\/\/www.cointree.com\/buy\/solana\/) and [Avalanche](https:\/\/www.cointree.com\/buy\/avalanche\/) operate with much higher Transactions Per Second (TPS) than bitcoin, making them more suitable for high throughput applications. While bitcoin is the dominant store of value in crypto, other blockchains can be better for different use cases.\n\n### 8\\. History\nWhile bitcoin is now well over a decade old, that’s still a short time compared to gold, which has been used as money for thousands of years. Still, investors are increasingly turning towards bitcoin as a superior version of gold.\n\n### 9\\. Web3\n[Web3](https:\/\/www.cointree.com\/learn\/what-is-web3\/), the decentralised internet, is one of the most exciting aspects of cryptocurrency. While bitcoin may be used as a payment currency on other web3 platforms, other crypto projects are leading the way in web3.\n\n### 10\\. DeFi\nSimilarly to web3, other cryptocurrencies like Ethereum are leading the revolution in decentralised finance (DeFi). And for a truly accessible financial economy for all, DeFi will play an important part in that.\n\n## Looking at the pros and cons of bitcoin, can bitcoin become the world reserve currency?\nHaving looked at the pros and cons of bitcoin, can bitcoin really become the world reserve currency? As Satoshi said, “It might make sense just to get some in case it catches on. 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Pros and Cons of Bitcoin: 20 Advantages and Disadvantages of BTC

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Learn about the pros and cons of bitcoin, including the outsized returns, self-custody, security, volatility and fixed supply. Assess bitcoin’s strengths.

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What are the pros and cons of Bitcoin? Should I buy bitcoin? If you’re thinking about investing in bitcoin, it’s important to get a good understanding of the advantages and disadvantages of the blockchain protocol. In this guide, you’ll learn about both bitcoin’s strengths and weaknesses, so you can make an informed decision. 10 advantages of bitcoin 1. Store of value Earning the title of ‘digital gold’, bitcoin is now accepted as a store of value by many sophisticated investors. As you’re probably aware, a store of value is a commodity, asset, or currency that keeps its value over a long period of time — a trait that’s especially important during inflationary times. Read our in-depth article to learn more about bitcoin as a store of value . 2. Outsized returns Bitcoin has been the best performing asset class of the last decade. It even outperformed the second-best performing asset class, the NASDAQ 100, by an order of magnitude. Even small investments have generated outstanding returns for long-term investors. Naturally, bitcoin’s historic rise has generated many bitcoin success stories . 3. Self-custody Individuals can self-custody cryptocurrencies like bitcoin. You don’t need to rely on a bank, legal documents, or a single entity to take complete ownership of your assets. This makes an incredible impact in countries across the globe without strong property rights, giving individuals more control over their future. And if you self-custody your own bitcoin, make sure you select the best bitcoin wallet in Australia . 4. Decentralised Bitcoin is the most decentralised cryptocurrency . What does that mean? It means that the Bitcoin network is distributed across many different computers, known as nodes. Decentralisation is so important because it prevents a single point of failure to attack, making it almost impossible for any organisation or government to take down the network.\ \ Notably, Bitcoin was the first ever protocol to solve the Byzantine Generals problem and create a decentralised network with a shared consensus and that invention gave way to every cryptocurrency that followed, including Ethereum, Litecoin, Dogecoin and Polkadot. 5. Permissionless Anyone can access the Bitcoin network. It doesn’t matter where you live or how much money you have, it’s an open peer-to-peer network that everyone can use. Being permissionless is important to us at Cointree , as we imagine a future in which the digital economy is accessible to all. 6. Secure Bitcoin is incredibly secure. Its public key cryptography makes sure every transaction is authentic. Its decentralisation means no centralised power can manipulate it for their benefit. And its irreversibility means nobody can go back and change the data. 7. 24/7 Unlike traditional financial markets, bitcoin doesn’t close in the afternoon or over the entire weekend. Bitcoin is tradeable 24/7, 365 days per year. Not to mention, sending bitcoin is faster than a bank transfer. While remittance payments to family overseas can take days, people can send and receive bitcoin in 10 minutes to an hour. 8. Fixed supply Unlike fiat currencies like the US dollar, governments cannot print bitcoin whenever they want more money. There will only ever be 21 million bitcoins. The importance of that scarcity is highlighted in the stock-to-flow model . 9. Divisible Each bitcoin is divisible into 100,000,000 satoshis (or sats for short). That means you can use bitcoin to pay for a cup of coffee, for micro-payments online, and ‘ stack sats ’ with as little as $10. Being able to use fractions of a bitcoin can make it the peer-to-peer digital currency that it was always intended to be, especially with the Lightning Network. 10. Inflation hedge Many sophisticated investors see bitcoin as an inflation hedge, including the billionaire investor Paul Tudor Jones who said it’s a better inflation hedge than gold. With ongoing money printing from central banks across the world, more and more investors are turning to bitcoin as an inflation hedge. 10 disadvantages of bitcoin 1. Volatility Bitcoin is highly volatile compared to other assets like property. While that’s to be expected with any fast-growing asset, and has been a boon for traders, it can be hard to stomach at times for long-term investors. As always, risk management is critical in such a market. 2. Competitors While bitcoin remains the dominant cryptocurrency (with a market cap double the next biggest cryptocurrency), there are more and more coins being created every day. And while it holds the dominant position, other competitors like Ethereum are designing their monetary policy to be more competitive with bitcoin. 3. Awareness While bitcoin is now being covered by the biggest media companies in the world, there are still many people who aren’t aware of it or why it’s so transformative to society. For example, while many people are aware that it has been a successful asset to generate wealth with, they don’t recognise how it can empower unbanked communities. 4. Banned in China Chinese miners and investors have played a large role in the history of the Bitcoin network, contributing significant investments and hash power to the network. However, with the government cracking down on Bitcoin, it looks like it will be prohibited in China. 5. Learning curve There’s a steep learning curve to fully understand bitcoin, and that can be daunting to beginner investors. Luckily, there are guides that explain what bitcoin is . More and more investors are educating themselves every day. 6. Energy concerns Bitcoin’s proof-of-work consensus system uses energy to help secure the network, with miners running specialised computers and burning energy. While more and more miners are switching to renewable energy and helping drive the green revolution, this wasn’t a big focus in bitcoin’s early history. 7. Transactions Per Second Other blockchain networks like Solana and Avalanche operate with much higher Transactions Per Second (TPS) than bitcoin, making them more suitable for high throughput applications. While bitcoin is the dominant store of value in crypto, other blockchains can be better for different use cases. 8. History While bitcoin is now well over a decade old, that’s still a short time compared to gold, which has been used as money for thousands of years. Still, investors are increasingly turning towards bitcoin as a superior version of gold. 9. Web3 Web3 , the decentralised internet, is one of the most exciting aspects of cryptocurrency. While bitcoin may be used as a payment currency on other web3 platforms, other crypto projects are leading the way in web3. 10. DeFi Similarly to web3, other cryptocurrencies like Ethereum are leading the revolution in decentralised finance (DeFi). And for a truly accessible financial economy for all, DeFi will play an important part in that. Looking at the pros and cons of bitcoin, can bitcoin become the world reserve currency? Having looked at the pros and cons of bitcoin, can bitcoin really become the world reserve currency? As Satoshi said, “It might make sense just to get some in case it catches on. If enough people think the same way, that becomes a self fulfilling prophecy.”

Markdown

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Should I buy bitcoin? If you’re thinking about investing in bitcoin, it’s important to get a good understanding of the advantages and disadvantages of the blockchain protocol. In this guide, you’ll learn about both bitcoin’s strengths and weaknesses, so you can make an informed decision. ## 10 advantages of bitcoin ### 1\. Store of value Earning the title of ‘digital gold’, bitcoin is now accepted as a store of value by many sophisticated investors. As you’re probably aware, a store of value is a commodity, asset, or currency that keeps its value over a long period of time — a trait that’s especially important during inflationary times. Read our in-depth article to learn more about bitcoin as a [store of value](https://www.cointree.com/learn/store-of-value/). ### 2\. Outsized returns Bitcoin has been the best performing asset class of the last decade. It even outperformed the second-best performing asset class, the NASDAQ 100, by an order of magnitude. Even small investments have generated outstanding returns for long-term investors. Naturally, bitcoin’s historic rise has generated many [bitcoin success stories](https://www.cointree.com/learn/bitcoin-success-stories/). ### 3\. Self-custody Individuals can self-custody cryptocurrencies like bitcoin. You don’t need to rely on a bank, legal documents, or a single entity to take complete ownership of your assets. This makes an incredible impact in countries across the globe without strong property rights, giving individuals more control over their future. And if you self-custody your own bitcoin, make sure you select the [best bitcoin wallet in Australia](https://www.cointree.com/learn/best-bitcoin-wallet-australia/). ### 4\. Decentralised Bitcoin is the most decentralised [cryptocurrency](https://www.cointree.com/trade/cryptocurrencies/). What does that mean? It means that the Bitcoin network is distributed across many different computers, known as nodes. Decentralisation is so important because it prevents a single point of failure to attack, making it almost impossible for any organisation or government to take down the network.\\ \\ Notably, Bitcoin was the first ever protocol to solve the Byzantine Generals problem and create a decentralised network with a shared consensus and that invention gave way to every cryptocurrency that followed, including Ethereum, Litecoin, Dogecoin and Polkadot. ### 5\. Permissionless Anyone can access the Bitcoin network. It doesn’t matter where you live or how much money you have, it’s an open peer-to-peer network that everyone can use. Being permissionless is important to us at [Cointree](https://www.cointree.com/why-cointree/), as we imagine a future in which the digital economy is accessible to all. ### 6\. Secure Bitcoin is incredibly secure. Its public key cryptography makes sure every transaction is authentic. Its decentralisation means no centralised power can manipulate it for their benefit. And its irreversibility means nobody can go back and change the data. ### 7\. 24/7 Unlike traditional financial markets, bitcoin doesn’t close in the afternoon or over the entire weekend. Bitcoin is tradeable 24/7, 365 days per year. Not to mention, sending bitcoin is faster than a bank transfer. While remittance payments to family overseas can take days, people can send and receive bitcoin in 10 minutes to an hour. ### 8\. Fixed supply Unlike fiat currencies like the US dollar, governments cannot print bitcoin whenever they want more money. There will only ever be 21 million bitcoins. The importance of that scarcity is highlighted in the [stock-to-flow model](https://www.cointree.com/learn/bitcoins-stock-to-flow-model/). ### 9\. Divisible Each bitcoin is divisible into 100,000,000 satoshis (or sats for short). That means you can use bitcoin to pay for a cup of coffee, for micro-payments online, and ‘[stack sats](https://www.cointree.com/learn/dollar-cost-averaging-cryptocurrency/)’ with as little as \$10. Being able to use fractions of a bitcoin can make it the peer-to-peer digital currency that it was always intended to be, especially with the Lightning Network. ### 10\. Inflation hedge Many sophisticated investors see bitcoin as an inflation hedge, including the billionaire investor Paul Tudor Jones who said it’s a better inflation hedge than gold. With ongoing money printing from central banks across the world, more and more investors are turning to bitcoin as an inflation hedge. ## 10 disadvantages of bitcoin ### 1\. Volatility Bitcoin is highly volatile compared to other assets like property. While that’s to be expected with any fast-growing asset, and has been a boon for traders, it can be hard to stomach at times for long-term investors. As always, risk management is critical in such a market. ### 2\. Competitors While bitcoin remains the dominant cryptocurrency (with a market cap double the next biggest cryptocurrency), there are more and more coins being created every day. And while it holds the dominant position, other competitors like Ethereum are designing their monetary policy to be more competitive with bitcoin. ### 3\. Awareness While bitcoin is now being covered by the biggest media companies in the world, there are still many people who aren’t aware of it or why it’s so transformative to society. For example, while many people are aware that it has been a successful asset to generate wealth with, they don’t recognise how it can empower unbanked communities. ### 4\. Banned in China Chinese miners and investors have played a large role in the history of the Bitcoin network, contributing significant investments and hash power to the network. However, with the government cracking down on Bitcoin, it looks like it will be prohibited in China. ### 5\. Learning curve There’s a steep learning curve to fully understand bitcoin, and that can be daunting to beginner investors. Luckily, there are guides that explain [what bitcoin is](https://www.cointree.com/learn/what-is-bitcoin/). More and more investors are educating themselves every day. ### 6\. Energy concerns Bitcoin’s proof-of-work consensus system uses energy to help secure the network, with miners running specialised computers and burning energy. While more and more miners are switching to renewable energy and helping drive the green revolution, this wasn’t a big focus in bitcoin’s early history. ### 7\. Transactions Per Second Other blockchain networks like [Solana](https://www.cointree.com/buy/solana/) and [Avalanche](https://www.cointree.com/buy/avalanche/) operate with much higher Transactions Per Second (TPS) than bitcoin, making them more suitable for high throughput applications. While bitcoin is the dominant store of value in crypto, other blockchains can be better for different use cases. ### 8\. History While bitcoin is now well over a decade old, that’s still a short time compared to gold, which has been used as money for thousands of years. Still, investors are increasingly turning towards bitcoin as a superior version of gold. ### 9\. Web3 [Web3](https://www.cointree.com/learn/what-is-web3/), the decentralised internet, is one of the most exciting aspects of cryptocurrency. While bitcoin may be used as a payment currency on other web3 platforms, other crypto projects are leading the way in web3. ### 10\. DeFi Similarly to web3, other cryptocurrencies like Ethereum are leading the revolution in decentralised finance (DeFi). And for a truly accessible financial economy for all, DeFi will play an important part in that. ## Looking at the pros and cons of bitcoin, can bitcoin become the world reserve currency? Having looked at the pros and cons of bitcoin, can bitcoin really become the world reserve currency? As Satoshi said, “It might make sense just to get some in case it catches on. If enough people think the same way, that becomes a self fulfilling prophecy.” Share [![Cointree](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACH5BAEAAAAALAAAAAABAAEAAAICRAEAOw==)](https://www.facebook.com/sharer/sharer.php?u=https://www.cointree.com/learn/pros-and-cons-of-bitcoin/) [![Cointree](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACH5BAEAAAAALAAAAAABAAEAAAICRAEAOw==)](https://twitter.com/intent/tweet?text=https://www.cointree.com/learn/pros-and-cons-of-bitcoin/) [![Cointree](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACH5BAEAAAAALAAAAAABAAEAAAICRAEAOw==)](https://www.linkedin.com/sharing/share-offsite/?url=https://www.cointree.com/learn/pros-and-cons-of-bitcoin/) ![Cointree](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACH5BAEAAAAALAAAAAABAAEAAAICRAEAOw==) ### [Cointree](https://www.cointree.com/author/cointree) Exchange13+ years experienceAUSTRAC Regulated A leading crypto exchange helping Australians grow their wealth with the world of crypto. Founded in 2013, our Melbourne-based team has built an intuitive platform that’s easy to use, has low fees, and offers world-class security. ## Ready to invest? Get \$20 worth of BTC free, when you make your first trade. T\&Cs apply. [Start Now](https://auth.cointree.com/Account/Register) ## Read Next [![Cointree](https://www.cointree.com/media/blog/web-learning-hub-hero-tax-article-crypto-tax-calculator-australia-crypto-tax-guide-2024-july-8th-2024.png?nf_resize=fit&w=50) Seasoned Investoradvanced Series Navigating Crypto Taxes: Tips for Australian Crypto Investors Navigating crypto taxes can be a challenge as crypto investors often deal with multiple wallets, transactions across various exchanges, and complex on-chain activities such as staking, airdrops, DeFi and NFT trading.](https://www.cointree.com/learn/navigating-crypto-taxes-tips-for-australian-crypto-investors/) [![Cointree](https://www.cointree.com/media/blog/web-learning-hub-hero-tax-article-koinly-australia-crypto-tax-guide-2024-july-1st-2024.png?nf_resize=fit&w=50) Seasoned Investoradvanced Series Australia Crypto Tax Guide 2025 Tax time kicks off on July 1. Wondering about your crypto tax obligations? We’ve teamed up with Koinly to deliver your essential Australia Crypto Tax Guide 2025.](https://www.cointree.com/learn/australia-crypto-tax-guide-2025/) [![Cointree](https://www.cointree.com/media/blog/web-learning-hub-hero-tax-article-coinledger-5-ways-to-save-july-15th-2024.png?nf_resize=fit&w=50) Seasoned Investoradvanced Series 5 Ways Australian Investors Can Save Money on Crypto Tax In this guide, we’ll break down 5 simple strategies that can help you save thousands of dollars on your tax return while staying compliant with Australian tax law.](https://www.cointree.com/learn/5-ways-australian-investors-can-save-money-on-crypto-tax/) ABN 36 167 203 303. ACN 167 203 303. 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What are the pros and cons of Bitcoin? Should I buy bitcoin? If you’re thinking about investing in bitcoin, it’s important to get a good understanding of the advantages and disadvantages of the blockchain protocol. In this guide, you’ll learn about both bitcoin’s strengths and weaknesses, so you can make an informed decision. ## 10 advantages of bitcoin ### 1\. Store of value Earning the title of ‘digital gold’, bitcoin is now accepted as a store of value by many sophisticated investors. As you’re probably aware, a store of value is a commodity, asset, or currency that keeps its value over a long period of time — a trait that’s especially important during inflationary times. Read our in-depth article to learn more about bitcoin as a [store of value](https://www.cointree.com/learn/store-of-value/). ### 2\. Outsized returns Bitcoin has been the best performing asset class of the last decade. It even outperformed the second-best performing asset class, the NASDAQ 100, by an order of magnitude. Even small investments have generated outstanding returns for long-term investors. Naturally, bitcoin’s historic rise has generated many [bitcoin success stories](https://www.cointree.com/learn/bitcoin-success-stories/). ### 3\. Self-custody Individuals can self-custody cryptocurrencies like bitcoin. You don’t need to rely on a bank, legal documents, or a single entity to take complete ownership of your assets. This makes an incredible impact in countries across the globe without strong property rights, giving individuals more control over their future. And if you self-custody your own bitcoin, make sure you select the [best bitcoin wallet in Australia](https://www.cointree.com/learn/best-bitcoin-wallet-australia/). ### 4\. Decentralised Bitcoin is the most decentralised [cryptocurrency](https://www.cointree.com/trade/cryptocurrencies/). What does that mean? It means that the Bitcoin network is distributed across many different computers, known as nodes. Decentralisation is so important because it prevents a single point of failure to attack, making it almost impossible for any organisation or government to take down the network.\\ \\ Notably, Bitcoin was the first ever protocol to solve the Byzantine Generals problem and create a decentralised network with a shared consensus and that invention gave way to every cryptocurrency that followed, including Ethereum, Litecoin, Dogecoin and Polkadot. ### 5\. Permissionless Anyone can access the Bitcoin network. It doesn’t matter where you live or how much money you have, it’s an open peer-to-peer network that everyone can use. Being permissionless is important to us at [Cointree](https://www.cointree.com/why-cointree/), as we imagine a future in which the digital economy is accessible to all. ### 6\. Secure Bitcoin is incredibly secure. Its public key cryptography makes sure every transaction is authentic. Its decentralisation means no centralised power can manipulate it for their benefit. And its irreversibility means nobody can go back and change the data. ### 7\. 24/7 Unlike traditional financial markets, bitcoin doesn’t close in the afternoon or over the entire weekend. Bitcoin is tradeable 24/7, 365 days per year. Not to mention, sending bitcoin is faster than a bank transfer. While remittance payments to family overseas can take days, people can send and receive bitcoin in 10 minutes to an hour. ### 8\. Fixed supply Unlike fiat currencies like the US dollar, governments cannot print bitcoin whenever they want more money. There will only ever be 21 million bitcoins. The importance of that scarcity is highlighted in the [stock-to-flow model](https://www.cointree.com/learn/bitcoins-stock-to-flow-model/). ### 9\. Divisible Each bitcoin is divisible into 100,000,000 satoshis (or sats for short). That means you can use bitcoin to pay for a cup of coffee, for micro-payments online, and ‘[stack sats](https://www.cointree.com/learn/dollar-cost-averaging-cryptocurrency/)’ with as little as \$10. Being able to use fractions of a bitcoin can make it the peer-to-peer digital currency that it was always intended to be, especially with the Lightning Network. ### 10\. Inflation hedge Many sophisticated investors see bitcoin as an inflation hedge, including the billionaire investor Paul Tudor Jones who said it’s a better inflation hedge than gold. With ongoing money printing from central banks across the world, more and more investors are turning to bitcoin as an inflation hedge. ## 10 disadvantages of bitcoin ### 1\. Volatility Bitcoin is highly volatile compared to other assets like property. While that’s to be expected with any fast-growing asset, and has been a boon for traders, it can be hard to stomach at times for long-term investors. As always, risk management is critical in such a market. ### 2\. Competitors While bitcoin remains the dominant cryptocurrency (with a market cap double the next biggest cryptocurrency), there are more and more coins being created every day. And while it holds the dominant position, other competitors like Ethereum are designing their monetary policy to be more competitive with bitcoin. ### 3\. Awareness While bitcoin is now being covered by the biggest media companies in the world, there are still many people who aren’t aware of it or why it’s so transformative to society. For example, while many people are aware that it has been a successful asset to generate wealth with, they don’t recognise how it can empower unbanked communities. ### 4\. Banned in China Chinese miners and investors have played a large role in the history of the Bitcoin network, contributing significant investments and hash power to the network. However, with the government cracking down on Bitcoin, it looks like it will be prohibited in China. ### 5\. Learning curve There’s a steep learning curve to fully understand bitcoin, and that can be daunting to beginner investors. Luckily, there are guides that explain [what bitcoin is](https://www.cointree.com/learn/what-is-bitcoin/). More and more investors are educating themselves every day. ### 6\. Energy concerns Bitcoin’s proof-of-work consensus system uses energy to help secure the network, with miners running specialised computers and burning energy. While more and more miners are switching to renewable energy and helping drive the green revolution, this wasn’t a big focus in bitcoin’s early history. ### 7\. Transactions Per Second Other blockchain networks like [Solana](https://www.cointree.com/buy/solana/) and [Avalanche](https://www.cointree.com/buy/avalanche/) operate with much higher Transactions Per Second (TPS) than bitcoin, making them more suitable for high throughput applications. While bitcoin is the dominant store of value in crypto, other blockchains can be better for different use cases. ### 8\. History While bitcoin is now well over a decade old, that’s still a short time compared to gold, which has been used as money for thousands of years. Still, investors are increasingly turning towards bitcoin as a superior version of gold. ### 9\. Web3 [Web3](https://www.cointree.com/learn/what-is-web3/), the decentralised internet, is one of the most exciting aspects of cryptocurrency. While bitcoin may be used as a payment currency on other web3 platforms, other crypto projects are leading the way in web3. ### 10\. DeFi Similarly to web3, other cryptocurrencies like Ethereum are leading the revolution in decentralised finance (DeFi). And for a truly accessible financial economy for all, DeFi will play an important part in that. ## Looking at the pros and cons of bitcoin, can bitcoin become the world reserve currency? Having looked at the pros and cons of bitcoin, can bitcoin really become the world reserve currency? As Satoshi said, “It might make sense just to get some in case it catches on. If enough people think the same way, that becomes a self fulfilling prophecy.”

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