IndexStrengthsWeaknessesConclusionBitcoin is considered the first digital currency in the world. The fact that cryptocurrency works without the regulation of a single administrator or central bank makes it a decentralized currency. Since its creation in 2009, cryptocurrency has grown in popularity around the world and has been accepted as a medium of exchange by numerous merchants. The peer to peer network allows users to directly transfer money from one person to another without the involvement of an intermediary. This transfer method has made transactions much cheaper than other means of money transfer. However there has been a lot of speculation about the vulnerability of bitcoin. The volatility of the currency also raises the question of whether bitcoin is worthy of being a real currency and whether it is safe. To better understand the security of bitcoins, it would be appropriate to compare the strengths and weaknesses of bitcoins. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Strengths Unlike other currencies, cryptocurrencies allow peer to peer transactions. This means that users can make transactions without involving an intermediary as the transactions are recorded in a public ledger. Regulated currencies require an "intermediary" to facilitate the transaction. In this case, banks act as intermediaries and have to charge a fee for the transaction, which increases the transaction fees. The lack of intermediaries in digital currency transactions makes it a cheaper transaction method. Transaction costs for bitcoin are as low as $0.61 (Dumitrescu, 67). The low transaction fees have also attracted several traders around the world who now accept the digital currency as a medium of exchange for products. The security offered by bitcoin is also an important consideration. Consumers with bank accounts are offered protection for their accounts at the specific bank. This means that the security of their accounts is in the hands of the intermediaries. Cryptocurrencies, on the other hand, do not depend on intermediaries. Once a user opens an account, they are provided with unique private keys that are used to access their accounts and make transactions. Since the security of a digital account depends on the owner, it is advisable to create passwords that are difficult to guess in case of hacking. The high return from investing in bitcoin is also a great advantage for users who invest in cryptocurrencies. In 2016, bitcoin investors saw more than 100% returns on their investments. The high amount of returns cannot be compared to annual bank interest rates and for this reason many customers have chosen to invest in bitcoin. Weak Points Bitcoin volatility is the most concerning when it comes to investing in cryptocurrencies. Since it is a decentralized monetary system, it has no regulator. Unlike banks that regulate the flow of money through pre-established policies, bitcoins are completely dependent on users. This means that the price of the digital currency can neither be determined nor controlled. Lack of regulation has seen cryptocurrency fluctuate wildly in recent years. For this reason, bitcoin has been called a risky investment since an investor could buy at a high price and sell at a low price with the aim of achieving higher returns, but the price could fall by the time the sell order is completed. Keep in mind: This is just a sample risky investment. Get it now.