Disadvantages of Bitcoin

Though this process reduces intermediaries and reduces the transfer time to almost 60 minutes, it brings in new issues. Let's take a look at the disadvantages of Bitcoin:

• Bitcoin's system doesn't plug in to existing banking systems or currencies
• Users need to create bitcoin wallets and exchange it with their native currency
• Its market prices are highly volatile
• Bitcoin is not widely accepted as a currency; in certain countries, it's illegal
• It could handle only a limited number of transactions per second
• Its transaction fees are high
• Its proof-of-work mechanism demands an immense amount of energy

The key disadvantage of Bitcoin is that it doesn't work with existing currencies and forces the user to make transactions in Bitcoin. Since the currency is not widely accepted and some countries have banned transacting in Bitcoin, it brings in new risks to its users.